Cava firm Freixenet to furlough 80% of its
workers in Catalonia due to drought
Spanish-German company announces layoffs as conditions
in north-eastern Spain hit grape production
Sam Jones
in Madrid
Tue 23 Apr
2024 12.55 CEST
The
Spanish-German cava giant Freixenet, known for its distinctive black glass
bottles of sparkling wine, is to furlough 80% of its workers in Catalonia as
the north-eastern Spanish region struggles with a drought that has lasted more
than three years and severely affected grape production.
In a
statement released this week, Freixenet said the temporary layoff – which will
apply to as many as 615 of the 778 people it employs in Catalonia – would begin
in May.
“The
measure, which has been implemented in the interests of responsibility, aims to
guarantee the operation of the business and to maintain employability in order
to deal with external factors and the force majeure caused by the serious
drought,” the company said.
“The
furlough, caused by force majeure, is an exceptional measure that has been
taken in the current context of a crisis that had been brought about by a lack
of raw materials because of the harsh drought that has affected the sector
since 2021 – and which hit the El Penedès area particularly hard in 2023.”
Freixenet
added that the furlough plan, which has been put before the regional government
and workers’ groups, “will vary according to the season and the evolution of
the causes that have made it necessary”.
The effects
of the climate emergency have become increasingly apparent across Spain over
recent years, bringing deadly wildfires, affecting the production of
traditional items such as olive oil and wine, and leading to the drying up of
over-exploited wetlands in the south.
In May last
year, the Spanish government approved an unprecedented €2.2bn (£1.9bn) plan to
help farmers and consumers cope with the enduring drought. Among its provisions
were €1.4bn of funds from the environment ministry to tackle the drought and
increase the availability of water, and €784m from the agriculture ministry to
help farmers maintain production and avoid food shortages.
The
environment secretary, Teresa Ribera, said at the time: “Spain is a country
that is used to periods of drought but there’s no doubt that, as a consequence
of the climate change we’re experiencing, we’re seeing far more frequent and
intense events and phenomena.”
Agriculture
accounts for 79% of water use in Spain, residential use for 15%, industry for
5.8% and leisure 0.4%, according to figures from the environment ministry.
In
Catalonia, which is now in its fourth successive year of drought, the regional
government has declared a state of emergency and introduced a series of limits
on water consumption that will affect 6 million people. The restrictions –
which were triggered after reserves fell below 16% – include a limit of 200
litres per inhabitant per day, an end to beach showers, and a ban on public or
private events that use water suitable for human consumption, such as temporary
ice rinks, foam parties or water games.
Stipulations
that had initially banned the filling of private and municipal freshwater
swimming pools will be relaxed if the pool in question is judged to be in use
as a public “climate shelter”.
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