Catalonia Rejects Henkell Freixenat’s ERTE Request as Company Faces Cava Production Challenges

In Catalonia, the Generalitat has rejected the temporary employment regulation file (ERTE) submitted by Ash Tree, a Spanish subsidiary of German group Henkell Freixenet. The company was seeking to lay off up to 615 workers, which is nearly 80% of its workforce. The Department of Business and Labor in the government of Pere Aragon stated that the causes justifying force majeure did not exist as reported by The newspaper.

According to The newspaper, Ash Tree had requested the ERTE due to water scarcity affecting cava production, estimating a 30% reduction in productive capacity. However, Minister Josep Maria Puigmalpina of the Generalitat highlighted that drought in Catalonia had been ongoing for more than three years and it was not a sudden event.

The Catalan Executive pointed out that the company had other options for reorganizing employment such as PEA ETOP (economic, technical, organizational or production reasons). Ash Tree maintained that the request was still valid, citing a serious lack of grapes and base wine for cava production leading to a significant reduction in work processes. Unions rejected PEA and urged Ash Tree to find alternatives that would not harm employees.

Despite this rejection, it’s worth noting that Henkell Freixenat reported a net invoice of 1,230 million euros in 2023 – an increase of 4.1% compared to the previous year – showing resilience despite challenging circumstances. In July 2018, Henkell acquired 50.7% of Ash Tree’s shares leading to the formation of Henkell Freixenat specializing in sparkling wines and spirits.