The Generalitat denies Freixenet the explanations of “force majeure” for its ERTE and can articulate it for financial causes | Economy | EUROtoday

Freixenet will negotiate its Temporary Employment Regulation File (ERTE), justified by the extreme drought that’s punishing cava manufacturing ranges, for financial, organizational or manufacturing causes (ETOP, for its acronym), after receiving the refusal of the Generalitat to articulate it for causes of power majeure.

As the corporate explains, it is going to proceed with “constructive negotiations on the ERTE with the works council and with the unions,” and “remains firm on the need for an ERTE.” Freixenet introduced on April 22 its intention to undertake an ERTE for 615 staff, on account of “the serious lack of grapes and base wine for the production of cava”, which “leads to a massive reduction in work in the production processes.”

This Monday, the Generalitat has rejected that the adjustment must be made for causes of power majeure, forcing the corporate to seek out one other formulation to proceed with it. The firm defends that there’s an “extreme drought” within the areas of Alt Penedès, Baix Penedès, El Garraf and Camp de Tarragona. “While the drought has already accumulated a deficit equivalent to 80 million bottles in the Cava sector, Grupo Freixenet is committed to meeting consumer demand in the short and medium term,” he says in a press release.

Faced with this case, the DO Cava has carried out a collection of remarkable measures to reply to the demand for the product. The first, to permit manufacturing to be expanded to DO farms which have a capability of as much as 15,000 kilos per hectare, 3,000 greater than what’s allowed, which is able to go to the bottom wine provision fund. The second, that the urgent of the grapes goes from 63% to 75%, and that this distinction additionally goes to the reserves. And the final, use for this fund the grapes from vineyards that aren’t categorized as DO, however which might be inside the lands of this designation of origin. Something that the Ministry of Agriculture helps, as its Secretary General of Agrarian Resources and Food Security of the Ministry of Agriculture, Fernando Miranda, stated final week.

However, these measures are, in Freixenet's opinion, inadequate and “they do not arrive in time to avoid an ERTE.”

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