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Drought threatens cava staff layoffs

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Drinkers of a certain bubbly brand may feel disappointed by future potential supply issues, but not as disappointed as the staff who work for the firm, as Freixenet has applied to temporarily lay off staff due to problems caused by the drought in Spain.

Freixenet Group has made the decision to request a temporary employment regulation file (ERTE) due to force majeure that would affect up to 615 workers of Freixenet SA and Segura Viudas SAU and would be activated from May, as reported by the company in a statement in which it states that “the intensity will vary depending on the period of the year and the evolution of the causes that motivate it.”

The measure, implemented as an exercise in responsibility, aims to “guarantee the operation of the business and preserve employability to be able to face external causes and force majeure caused by the serious drought,” explains the group.

The ERTE due to force majeure is an exceptional measure that is framed in the current context of crisis caused by the lack of raw materials derived from the severe drought that has been affecting the sector since 2021, with special impact in 2023 in the El Penedés area.

The company has initiated the process before the Department of Business and Labour of the Generalitat of Catalonia and has transferred it to the social representation of the workers.

Amongst many products developed by the company, one of the most popular is their brand of cava.

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