Deal struck in Spanish shipyard row

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Deal struck in Spanish shipyard row

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Unions and government representatives in Spain are reported to have reached an agreement in a long-running row over restructuring of the state-owned ship building company, Izar.

It is understood the two sides have agreed, in principle, to a plan for limited privatisation of four ship yards across the country. They have also struck a deal on the creation of a new holding company. Workers had feared the restructuring programme would have led to the closing of some yards and the loss of thousands of jobs. The dispute has led to violent protests in recent months. The government was faced with the task of modernising the loss-making firm which has found itself under pressure from Asian competitors. Its woes were added to by a demand from Brussels for a repayment of subsidies.