Spanish truckers’ protest widens as more firms hit by disruption

Three major federations of truck owners will join a protest in Spain over soaring fuel prices despite the government’s pledge to give direct aid, escalating a movement that’s hindering trade and some industries. 

French dairy giant Danone warned on Tuesday that it will have to temporarily halt operations in Spain within 24 hours if the demonstration continues. The world’s largest yogurt maker is the latest company that may be hit by the week-long protest that has disrupted supply chains for car and clothes manufacturers, milk producers and supermarket chains.   

Facing rising social discontent about skyrocketing energy costs, Prime Minister Pedro Sanchez is touring European capitals this week to try to whip up support for an overhaul of the continent’s energy markets. His government is also working back home to gain political backing for a package of measures to cushion the fallout of the war in Ukraine.

The truckers’ protest is due to continue after three federations of transportation companies said the government’s pledges for 500 million euros ($550 million) in direct help was not enough and more details would be needed in the coming days. Economy Minister Nadia Calvino said on Monday that the aid, which will be partly paid by oil companies, will lower fuel costs for truck drivers and owners.  

If Sanchez doesn’t came up with stronger measures to contain prices of products besides energy, the country could face more social upheaval in the coming weeks, said Unai Sordo, the head of Comisiones Obreras, Spain’s largest confederation of unions.

Thousands of fishermen went on strike on Monday and farmers are threatening action to demand help with energy costs that surged further after Russia’s invasion of Ukraine in late February. Meanwhile, Inditex SA, the world’s largest clothing retailer, said on the website of its Zara brand that some deliveries in Spain may be delayed due to the protest by the truck drivers, who are also demanding better working conditions.

“It all depends on what the government puts on the table,” Sordo said in an interview. “If the government can take measures to ease the spike in prices, from fertilizers to fuel, then the situation can return to normal.”