Fourth ERE in five years will increase layoffs to 3,000 from 2020

Such calculations were made by representatives of the plant’s trade union this Wednesday after receiving news from the transnational corporation. “We have informed the legal representative of the company’s employees of our intention open a consultation period for the application of the labor regulation file“Ford later confirmed this in a letter to all staff.

The solution comes after speculation, after proposal UGTabout the possible use of the so-called RED mechanism government to maintain employment without layoffs until the promised workload, scheduled for 2027 with the launch of a new hybrid car, arrives.

(Ford announces opening of ERE in Almussafes due to overstaffing that will plague the plant until 2027)

But Ford, unless a new turn of events occurs, seems to have chosen the traditional ERE formula to overcome the long three-year period of productive decline it would face due to a surplus of staff, which currently stands at about a thousand but could grow in the coming months.

Another difficult calculation: this is the sudden reduction of the plant in the above five years. Before the first ERE of the decade the plant had about 6,700 workers.

The good times were coming to an end when the plant assembled five cars: Kuga, Mondeo, S-Max, Galaxy and two vans Unite (Transit and Tourneo).

Of all of them only Kuga provide employment the workforce that could have remained at 3,700 is 45% smaller.

ERE is the result of a new manufacturing organization announced last week by the company’s vice president for Europe. Kieran Cahill. The Spanish plant will receive an important order – the assembly of a car, the volume of which “will reach 300,000 units per year.”

The problem with the announcement is that the release of a new car to the market will happen “in mid-2027”. That is: within three years, so that the Valencian industry faces a long period of excessive labor force.

The UGT itself warned after hearing reports that “This doesn’t solve everything”. “Now we have to resolve the issue of employment,” he said. Ford is now in the lead by directly proposing redundancies through the new ERE.

The alternative formula, although seemingly complex, seemed to be gaining traction. The trade union organization itself made a request Government of Spain which activates its so-called RED Mechanism flexibility and employment stabilization to maintain employment until ordered. CCOO joined this requirement, but requested it for the entire automotive sector.

This is an exceptional tool that should be approved Council of Ministers. It has already been used to help the travel agency sector during the pandemic, but has not been used to support any industry to date. Moreover, it is not addressed to specific companies, but rather to sectors.

This is a kind of employment rules document that provides additional benefits for the company and employees. The main thing is that unemployment days are not spentas is the case with ERTE common. Therefore he represents additional costs for the state.

But Ford either doesn’t believe the formula will work or doesn’t think it’s sufficient to solve the overstaffing problem, so it decided to push for a new ERE.

Disclaimer from PERTE

Ford’s organizational changes, as UGT explained this Wednesday in its letter, also mean that the company has made public “his departure from PERTE electric vehicle”. He did this “on the grounds that he would not be able to meet the deadline.”
what this plan requires.

“This indicates that Ford’s timeline is different, taking into account the delays associated with electrification in Europe and the market research carried out,” the union said.

Regarding the new car that will be awarded by the factory, UGT explained that ““It won’t be 100% electric, but in terms of global workload and employment it will guarantee a level higher than what an electric platform means today.”

An arrival of this volume of 300,000 vehicles per year could triple the industry’s current output. Almussafes currently only assembles Fords. Kugaof which just under 150,000 units were produced in 2023.

Be “brand new car”– they clarified without disclosing details. Having to choose the car you’re bidding on and design it from scratch will delay its arrival on the market.

The plant also has a new Temporary Employment Regulations (ERTE) document in place until June 20th. within a few days it will affect 2,300 workers -its structural surplus of a thousand or more additional thousand, due to other production reasons, such as a shortage of components. Forced breaks affect 48% of employees.

After van production ceased UniteThe Valencian factory now only produces Kuga

. For this reason, on March 27, Ford Global President Jim Farley pledged to entrust the production of a “multi-energy passenger vehicle” to the Valencian plant.

Please remember that this rate assumes turnaround from the announced summer 2022, when Ford, promoted by EL ESPAÑOL-Invertia, announced the creation of a new platform for Almussafes to produce two 100% electric vehicles. It has now been decided to continue using hybrids due to low demand for electric vehicles.