Controversial Decision by Henkell Freixenet: Ash Tree Rejects ERT Proposal, Urges Exploration of Alternative Solutions

The Spanish subsidiary of the German group Henkell Freixenet, ash tree, has proposed a temporary employment regulation file (ERTE) to affect up to 615 workers, almost 80% of its workforce. However, the Generalitat of Catalonia has rejected the proposal, citing that the causes cited for force majeure do not exist. The Department of Business and Labor of the Catalan government determined that water scarcity impacting production of cava was not a sufficient reason for the proposed measure.

The Minister of the Generalitat stated that drought conditions in Catalonia have been ongoing for over three years, making it not a sudden event. The Catalan Executive suggested that ash tree consider other options for reorganizing its workforce, such as the PEA ETOP process. However, ash tree maintains that the reason for the requested measure is still valid, citing a severe lack of grapes and base wine necessary for cava production as leading to significant reductions in work processes.

Unions have rejected the proposed measure and urged ash tree to explore alternative solutions that do not harm its employees. The government expressed its intention to meet with ash tree’s management and Regulatory Council of Cava Denomination of Origin to find solutions and minimize impact on workforce. In 2023, Henkell Freixenet reported a net revenue of 1,230 million euros, indicating an increase of 4.1% compared to previous year.

In 2018, Henkell acquired a majority stake in ash tree leading to formation of Henkell Freixenet after reaching agreement with Spanish brand. Ash tree had already warned about effects of drought in their 2023 results presentation with concerns about lack grape material due to severe drought impacting Penedès region.