Renault Raises a New ERTE Until June due to Lack of Supplies

The measure will affect 8,777 workers in its four Spanish factories.

Renault will extend the temporary employment regulation file (ERTE) that ended next December. The reason is the same as until now: the lack of supplies, especially semiconductors, which affects the global industry and is having a strong impact on the manufacture of automobiles. Given the uncertainty about when the bottlenecks will be resolved, the French group proposes that the new ERTE, which will affect 8,777 employees, will begin to be activated on December 1 and will remain until June 30, 2022.

The management of the French group has communicated its intentions to the works council on Tuesday, which was not as surprised by the expansion of the ERTE as the proposal that it would come into force on the first day of December, when the current one expired the last day of the year. The reason is that the stops accumulated in recent months are putting the limit on the balances of affected days agreed in the current employment regulation of the Palencia and Valladolid plants.

The company management, according to union sources, also intends to apply greater damages to workers. If up to now there were 61 days of damage in Palencia and 40 in the assembly line and in Valladolid bodies, those figures will jump to 78 days in the first case and in 77 and 90, respectively, in the second and third case.

The UGT union has warned that it will demand that the conditions of the new ERTE be similar to the one agreed in spring, when the lack of microchips had been affecting Renault’s Spanish plants for weeks, leaving no room for maneuvering the labor flexibility measures included in the collective agreement.

The ERTE are in force in most of the vehicle factories present in Spain. Seat already proposed last September a regulation that would reach 11,000 workers until the end of June. It was considered as a formula that would allow it to close it earlier if conditions improved, a situation that now appears difficult: this week the Martorell plant woke up with one of its three lines paralyzed, which means three fewer work shifts.

For its part, Stellantis has three active ERTEs in its three plants (Vigo, Figueruelas and Madrid) that will conclude at the end of this year and, in the case of Madrid, the need to negotiate another 60 days has already been communicated to the staff. faced with the same problems. And in Mercedes there is another ERTE active this year for a maximum of 30 days.

Production problems are being transferred to sales: manufacturers claim that they do not have enough vehicles as potential buyers demand and that stocks are at a minimum. Hence, sales in Spain and in Europe as a whole have not recovered as expected after the blow that the coronavirus crisis gave the car market in 2020.