Jose Antonio Lisbona, chief executive of Citigate Sanchis said the alliance will see the agency's corporate crisis team and the labour relations division at E&Y work together on a number of communications and legal services for clients.
They will focus mostly on corporations needing to create redundancies and relocate out of the country. CS will provide external and internal comms related to staff cuts, general crisis PR and media and institutional relations. E&Y's legal team will offer legal and financial advice to support redundancy programmes.
Lisbona and Madrid-based Citigate Sanchis account director Javier Solis will manage the alliance with E&Y's Javier Diaz Galvan, Miguel Angel Alcaraz and Luis Martin, who head the labour relations department in the Spanish capital.
Lisbona said the firms had worked for the same clients in the past.
A number of industrial giants including Samsung and Philips have moved manufacturing bases from Spain to cheaper labour markets in Asia and Eastern Europe, triggering fierce protests from a heavily unionised workforce. The trend is expected to continue with 10 more countries entering the European Union in May.