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ARCHIVED - ERTE pandemic furlough schemes in Spain prolonged until the end of May
The jobs of workers affected are protected for six months after unions and employers agree to the government proposal
It has finally been agreed this week that the ERTE pandemic furlough scheme in Spain will be prolonged until 31st May, as proposed by the government, after the CEOE employers’ organization gave its backing to the proposal. The UGT trades union had already confirmed its support last week and CCOO is almost certain to follow suit in the near future, meaning that the ERTEs will remain operative until after the end of the current national state of emergency on 9th May.
Among the terms of the extension of the ERTEs which are said to have won over the unions are a reduction in the bureaucratic procedures required to switch from one kind of furlough scheme to another, resulting in reduced costs for the businesses involved, and the continuation of a list of “especially protected activities” which includes bars and restaurants and has been extended to include coach and bus companies and campsites.
The main sticking point for the CEOE, which represents businesses rather than employees, was the requirement that staff be retained for at least six months by any company applying for an ERTE, with benefits being effectively forfeited even if only one worker was laid off. In the end, though, this condition remains in place on the absolute insistence of the government after Nadia Calviño, the Minister for the Economy, stated on Friday that “public support for financing the ERTEs cannot be used to cover for subsequent layoffs”.
The ERTE schemes had been due to come to an end on 31st January but now, as a result of the agreement, businesses can at least weigh up their options in the third wave of the pandemic with some degree of certainty regarding where they stand as regards furlough.