Union rejects Freixenet's proposed job cuts, citing 'temporary' causes

The UGT union has urged renowned Catalan cava producer Freixenet to seek "solutions that do not involve any dismissals," arguing that the reasons behind plans to lay off 180 employees are "temporary."

The union demanded the withdrawal of the redundancy procedure on Friday, voicing its "absolute rejection" of the company’s planned cuts.

Freixenet announced on Thursday it was considering a mass employee redundancy procedure (known as an ERO in Catalan and an ERE in Spanish), citing challenges related to climate change.

This would affect 180 employees, 24% of the workforce at Freixenet and sister brand Segura Viudas.

The UGT union warned that the ERO "not only jeopardizes the future of 180 families but also represents a serious rupture between the workforce and the Freixenet Group," recalling workers' "commitment" during past challenges, including the Covid-19 pandemic and periods of production difficulty.

In its statement, the union said that the company’s management "cannot use temporary issues to justify permanent measures" and made it clear that it would do "everything necessary" to defend the jobs.

According to the UGT, the drought has had a "partial and temporary" effect on wine and cava production in Catalonia.

It pointed out that last year, the company requested temporary layoffs (an ERTO/ERTE), citing the drought as a force majeure reason, but this was rejected by the Catalan government.

"Unprecedented crisis"

In a statement on Thursday, Freixenet announced that it has to take "urgent" measures to ensure the company’s long-term sustainability, following the period of drought that has caused "severe disruptions" and an "unprecedented crisis" in the sparkling wine sector.  

The ongoing water shortage has driven up costs and reduced wine production, the statement said.

Freixenet said that the ERO will be approached with a "deep understanding" of its impact and it will guarantee an "open dialogue" when negotiations with the workers' representatives begin.

The CCOO labor union has also completely opposed the layoff scheme, labelling it "unjustified and unacceptable."