The Generalitat de Catalunya has rejected the temporary employment regulation file (ERTE) proposed by Henkell Freixenet, a subsidiary of the German Oetker group, which would have affected up to 615 workers, or about 80% of the company’s workforce. The Department of Business and Labor of the Catalan government has determined that the causes cited for force majeure do not exist.
The company had argued that water scarcity was impacting its production of cava and had requested a 30% cut in productive capacity due to a severe lack of grapes and base wine necessary for cava production. However, 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 has suggested that the company consider other options for reorganizing its workforce, such as the PEA ETOP process. Unions have rejected the proposed measure and urged Ash Tree to explore alternative solutions that do not harm its employees. The government has expressed its intention to meet with Ash Tree management and the Regulatory Council of Cava Denomination of Origin to find solutions and minimize any impact on the workforce.
In 2023, Henkell Freixenet reported a net revenue of €1,230 million euros, an increase of 4.1% compared to the previous year. Ash Tree is controlled by Henkell Freixenet’s parent company, Henkell Group’s subsidiary Oetker Group. In 2018, Oetker Group’s subsidiary Henkell acquired a majority stake in Ash Tree, leading to the formation of Henkell Freixenet in 2019 after reaching an agreement with Spanish brand Ash Tree.
