Inditex employees demand raise after record profits

Employees of Inditex have protested in several Spanish cities. They demand better pay conditions, now that the fashion group is paying a record dividend and saw profits skyrocket.

Fair profit distribution

Spanish trade unions believe employees should share in the 5.4 billion euro net profit the company made last year. Profits rose 30 % and led to a 28 % higher dividend payout to shareholders, the highest in the fashion group’s history.

Last year, Inditex implemented a 20 % pay rise for its Spanish store employees and this year, employees are entitled to a one-off 1,000-euro bonus. Globally, wages at Inditex rose by an average of 9 % last year. However, unions are now demanding extra bonuses for workers who have been employed for more than four years, Reuters reported.

Other retailers are also watching the protests closely: the outcome could set a precedent for labour relations in the fast-fashion industry, where there are growing calls for corporate responsibility despite sharp margins and increasing competition in the sector. The unions claim that more than half of Spain’s 27,000 Inditex workers have signed a petition demanding a fairer distribution of profits. During the actions, shops did remain open as usual.