(18 Dec 2021) Spanish truckers have won concessions from the government to help check rising fuel costs and improve work conditions after threatening to stop hauling freight just before Christmas.
Spain, like many governments across the globe, faced pressure to help relieve the pain caused by record-high inflation. The problem is that there's only so much relief they can bring, if any.
After protests this week, thousands of Spanish truck drivers had something to celebrate on Saturday after a threat to idle their engines pushed the Spanish government to adopt measures improving work conditions and checking skyrocketing fuel costs driven by inflation.
It's the latest effort by workers, opposition leaders and citizens to pressure governments from Europe to the Americas to intervene as surging consumer prices squeeze households and businesses.
After days of negotiations, the truck companies called off the Monday-to-Wednesday action after Spain's transport ministry agreed to demands that include controls to help cushion the blow of rising diesel costs.
This week, dozens of trucks rolled slowly through Madrid in a "slow march" protest. Many truckers feel that while they helped keep the country going when Spain entered a shutdown during the depths of the pandemic, they are being left behind by Europe's focus on a greener economy that's moving from diesel engines to electric vehicles.
Protesting van driver Jesus Sanchez said: "There are other articles that do not have the same rise, the same inflation as fuel, when they are necessary for a country like Spain, where road transport represents 80 percent because there is no rail or maritime transport. This is not sustainable, it is not feasible. This situation cannot continue like this."
The government's late Friday concessions included regulations to make a difficult job easier and attract young people: a ban on drivers loading and unloading trucks and an end to long waits at their destination. Spain also guaranteed a mandate that all trucking companies increase their tariffs in line with diesel costs so competitors don't undercut each other, eroding profits and driving some to the brink of extinction.
Political pressure has led countries including Poland, Hungary and the U.S. to take steps such as instituting caps on gas prices, pledging money for poor households or releasing oil from strategic reserves.
Spain was among places like Turkey seeing more intense efforts such as protests and work stoppages tied to complaints about inflation, which has surged as the global economy rebounded from the pandemic, increasing demand for smaller supplies of energy and snarling supply chains.
While governments are taking action, they have few effective resources to bring meaningful, lasting relief, economists say, offering short-term aid that likely will do little to combat surging prices. That's up to central banks, some of whom have started raising interest rates to ease inflation.
Spain's inflation is at a 29-year high of 5.5%, and like countries worldwide, one of the biggest drivers is energy costs: gasoline has risen 63%, while electricity for households and businesses is up 47% over the past year.
Jaume Hugas, professor of logistics, innovation and data science at ESADE business school in Barcelona, said inflation is a common thread through protests by different sectors of Spain's economy. Strikes by metalworkers last month turned violent, and farmers have rallied against high prices.
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