July 10, 2020

the list of large companies that have announced an ERTE




Since the decree of the state of alarm was approved, many Spaniards have been familiar with the word ERTE. Temporary layoffs occur throughout Spain and, according to the data handled by ABC, already there are more than 200,000 companies those who have used this formula. In total, more than a million and a half people affected in just two weeks.

By regions that have officially reported the ERTE number, the ones that present the most cases are Catalonia (41,555 files presented), Andalusia (37,363) and the Valencian Community (24,272). This cascade of files has forced the Ministry of Labor to have to strengthen SEPE by hiring 1,000 interim.

By sectors, the production slowdown is being more accused by tourism, catering, trade and automobile manufacturers. Thus, although most of ERTE have been presented by small companies, large brands have also had to make their employment adjustments.

The English Court: It is, so far, the company that has presented the greatest adjustment, with a total of 25,900 workers affected by the ERTE. These are broken down into 22,000 of the group’s shopping centers, 2,000 people from the Sfera fashion line and 1,900 from El Corte Inglés Viajes. The group chaired by Marta Álvarez also announced that it is committed to supplementing the aid that employees will receive to cover the entire salary.

Inditex: The owner of brands such as Zara, Massimo Dutti, Bershka and Oysho already said last week, after presenting their 2019 results, that they would not make layoffs on their staff, but did not rule out carrying out an ERTE. Finally, the group chaired by Pablo Isla intends to apply an ERTE from April 15 to 25,000 of the 50,000 employees it has in staff in Spain. They would all be from store staff. This decision would only be carried out if the alarm status is extended and the 1,580 stores that Inditex has in our country continue to be closed. The textile chain also intends to complement the benefit that those affected would receive from SEPE up to 100% of salary.

H&M: The textile company decided to carry out an ERTE for its employees in Spain that will impact 5,600 workers that it has in its stores and the Torrejón de Ardoz logistics plant. The suspension of the contracts will be effective from March 14. In addition, the clothing company intends to supplement for 14 days the benefit, corresponding to 70% of the salary they will receive from SEPE, until they reach 100% of their wages.

Mango: The Catalan company presented an ERTE due to force majeure that will affect 4,767 employees, most of its commercial network in Spain and its logistics center in Lliça dÁmunt. The textile chain has reported that it has been forced to close 1,695 stores in 72 markets. Mango will supplement the salary of its workers up to a maximum of 2,000 euros a month in March. In addition, its CEO, Toni Ruiz, has decided to waive any type of remuneration while this temporary closure situation lasts.

Tendam: The owner of brands such as Cortefiel, Springfield and Woman Secret undertakes an ERTE that affects the staff of the stores of its brands in Spain, the staff of the headquarters in Madrid and Barcelona. In total, 7,000 people. The minimum services that guarantee that the company operates with “normality” are exempt.

Primark: The chain of British origin announced presented its plan for 7,000 employees, 98% of its staff, for the closure of its 47 stores in Spain. The company announced that it would complement payrolls up to 100% in March.

Unequal: In the case of the Catalan company, temporary layoffs will affect 90% of its workforce in Spain, that is, about 1,359 employees. According to the company statement, the coronavirus crisis has forced them to close the 87 stores it has in Spain and 296 of the 298 it has in Europe. Likewise, Desigual informed that it will guarantee 90% of the salary of all its employees, up to a maximum of 2,000 euros per month.

Adolfo Domínguez: Another textile chain that decided to undertake adjustments. In principle, his plan was to affect 728 people. However, last week the textile chain reported that it is expanding that number to 906 workers, who represent 76% of its workforce. Employees at its headquarters and 36 workers from Portugal are affected in this increase.

Meliá: The hotel chain presented an ERTE due to force majeure for almost 9,000 people. The company informs that it will enter into force tomorrow 26 and that it will complement the unemployment benefit received by the worker up to 50% of his gross salary

NH: The hotel group, with 3,596 employees in Spain, presented an ERTE on Tuesday that will affect central services and hotel personnel, after the government decreed the closure of 90% of hotel establishments in Spain.

Barceló: The hotel company has submitted an ERTE for one hundred percent of its staff in Spain, which amounts to 6,500 workers. To these must be added 3,500 workers from Ávoris, the group’s travel agency division, which is in full merger with Halcón Viajes.

RIU: Due to the closure of 31 hotels in Spain and the suspension of activities at its headquarters due to the coronavirus pandemic, the hotel chain has submitted an ERTE for some 5,500 workers.

Iberia: The airline presented a three-month ERTE that will affect 90% of its workforce in the areas of flight, handling, in-line maintenance and cargo, due to the “exceptional situation created by the coronavirus in the world and the restrictions on traffic from passengers adopted by most countries, “as reported by the company. In the case of central services and offices, the ERTE will affect a maximum of 70%. In the rest of the maintenance activities, the ERTE will be a maximum of 60%, while in major maintenance it will be a maximum of 80% the first two months and 90% the third. In short, it affects 13,000 of the nearly 16,500 employees it has.

Globalia: The tourism company that owns Air Europa, Halcón Viajes and Travelplan, among others, launched an ERTE for 16,000 people.

Ikea: The Swedish multinational presented its plan for 6,300 of the 8,000 people it employs in Spain on Tuesday. The file mainly affects employees of commercial establishments and those who work in the company’s logistics center in Valls, central offices, online sales and customer service, as well as maintenance and security personnel, are excluded.

PSA: The car manufacturing group PSA (Peugeot, Citröen and Opel) signed on Tuesday with the representatives of the workers of its three centers in Spain -Vigo, Zaragoza and Madrid- agreements to apply ERTE that will affect, except in some positions, the almost all of the workforce employed in production, about 12,000 workers.

Seat: The Martorell plant, which employs 14,800 people, announced an ERTE that may affect the total workforce. Although all personnel are included, the company expects that it will only affect the 10,500 employees dedicated to the assembly of vehicles.

Renault: The automobile group’s plan affects 11,649 people out of the 14,000 it employs in Spain.

Nissan: The automobile company did not reach an agreement with the unions, but it will still apply an ERTE that will affect 3,300 people out of the 3,500 it employs at its three plants in the Barcelona Free Zone, Montcada i Reixac and Sant Andreu de la Barca. The disagreement between the company and the unions occurs as a complement to the workers’ wages during the hiatus. The company offers to guarantee up to 80%, while the unions ask for 90%.

Burger King: The Burger King restaurant chain has requested an ERTE that will affect between 10,000 and 12,000 employees, a figure somewhat lower than expected due to the reopening of its home service after suspending it days ago. Specifically, the company had planned the initial suspension of the contracts of 14,000 people.

Alsea (Vips, Domino´s, Foster´s): The restaurant group was one of the first to make this decision after suspending home delivery. The ERTE presented impacts 22,000 workers. It has a total of 1,000 restaurants and shops in Spain.

AmRest (La Tagliatella, KFC): The group that owns such popular brands as «La Tagliatella», «KFC», «Blue Frog» or «Bacoa» has presented an ERTE that will affect 3,666 employees in Spain (93% of its workforce in Spain), after having they have to close all their establishments after proclaiming the state of alarm.

Makro: The distribution group linked to the hospitality industry yesterday presented its plan, although it did not specify the number of people affected. The company reported that it is adopting this measure to keep its workers’ contracts in force with temporary suspensions and reductions in working hours, complementing the unemployment benefits of all those affected up to 100% of their salary.

Elbow: The gaming group presented an ERTE yesterday for some of its companies, which affect 1,071 employees, 69% of which it has in Spain. As announced in a relevant event sent to the National Securities Market Commission (CNMV), it plans to present additional ERTE in the coming days for most of the rest of its subsidiaries in our country also for reasons of force majeure.


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