June 16, 2021

Seat rules out a temporary ERE to deal with production stoppage

The management of Seat has finally decided not to present any Temporary Employment Regulation File (ERTE) to cope with the drop in production derived from the stoppage of the Martorell plant (Barcelona) due to the fire of a supplier, which has left several days without working 6,600 employees.

In return, the company has accepted the proposal of the company committee that the workforce works on December 18, 19 and 20, in addition to opening the factory three Saturdays in January in the morning for the Audi A1 model to be assembled.

Seat has specified that with these two measures it will be possible to recover the production of some 6,700 cars, out of the approximately 12,100 that the company estimates have been discontinued so far as a result of the lack of supplies from its supplier Faurecia, which manufactures dashboards and it suffered a fire.

The company has transferred this decision this Friday to the works council in a meeting called to discuss possible solutions to the situation of the Martorell plant.

The management of Seat had raised to the committee the possibility of presenting a temporary ERE for some 6,600 workers to deal with this break, a possibility that the unions rejected flatly, so they proposed other solutions, such as the one that the company has finally adopted .

The president of the works council, Matías Carnero (UGT), has described the agreement as "positive" because it avoids the negative effects that an ERTE has, as it is that workers see their Social Security contributions suspended.

In addition to giving up the file, the company has accepted that all the days that have been lost in production due to the lack of Faurecia supplies are considered "technical unemployment", so that workers will not see their payrolls reduced despite to have stayed at home

With the authorization as a working day of December 18, 19 and 20 (which in the 2019 calendar were considered holidays) and the implementation of the line that joins the A1 during three Saturdays in January, Seat will be able to recover a part of the lost production, which union estimates put in about 14,000 vehicles.

The company believes that when the plant returns to normal one hundred percent, between 13,000 and 15,000 vehicles will have been discontinued.

Both the unions and the company assume that it will not be possible to recover this year all the units that could not be manufactured in the days of forced inactivity, although the company relativizes this fact since it is convinced that in 2020 the missing vehicles.

The impact of the fire of a supplier as important as Faurecia, which basically supplies dashboards, will make it almost impossible for Seat to end the year with the historical production record expected, given the initial forecast of reaching 506,000 units, although the final figure It will continue to be higher than in 2018.

Regarding the calendar for Martorell to resume productive normality at one hundred percent, Seat has explained that lines 2 and 3 will continue to not work next Monday and that they are expected to reopen over the next week.

With this forecast, the automobile brand will have stopped producing until 13,200 cars until Monday, a figure that will increase depending on when the two missing lines can be activated again.

Until now, it only produces at the usual rate line 1, which assembles the Ibiza and Arona models.

. (tagsToTranslate) Seat (t) discards (t) ERE (t) temporary (t) production

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