Government passivity hits Ford: he managed to avoid 900 layoffs

The manufacturer proposed ERE for 1,622 workers, 35% of the workforce.

Factory address Ford in Almussafes proposed new layoffs at the plant. The American automaker raised the issue employment rules file (ERE) for 1622 workers, representing 35% of the workforce. The number of victims could be reduced to 900 if the executive branch launched RED Mechanismbecause in this restructuring, 996 layoffs will take precedence over rehiring in 2027 with the arrival of the new model at the plant.

This was confirmed in conversations with this newspaper by sources close to the negotiations, who indicated that “The Government, despite its representation in meetings between the plant management and the plant committee – in particular Rebecca TorroMinister of Industry, has failed to stop the flow of layoffs that are about to take place at Ford Almussafes, despite the fact that he has the tools to do so.

At the meeting held today that created the negotiating committee for Ford’s proposed ERE, relevant documentation was presented that shows the total surplus 1622 people. Of these, 626 will be permanent incentive terminations and 996 will be for-reason terminations with a preference for rehire in 2027.

In order not to add the second figure, that is, 996 workers, to the total number of EREs, Ford asked the government of Pedro Sanchez to launch RED Mechanismwhich is a system of flexibility and stabilization of employment for the suspension of employment contracts during a certain time cycle, with the aim of maintaining employment until the arrival of the new model at the plant in 2027.

Ford layoffs continue

However, the government refused to activate the mechanism, which can only be approved by the Council of Ministers, despite criticism of the layoffs the manufacturer carried out at its Valencia plant. In fact, the second vice president and minister of labor and social economy herself, Yolanda Diazcalled the ERE “unsustainable” despite having the tools to reduce the number of people affected, which is expected to be joined by more layoffs in the ancillary industry.

In turn, the Minister of Innovation, Industry, Trade and Tourism of the Valencian Generalitat: Nuria Montesstressed this Wednesday that Ford’s announcement that the ERE at the Almussafes plant will affect more than 1,600 workers “is an excellent opportunity for the Spanish government to activate the RED mechanism for the entire automotive sector once and for all.”

The proposal, which was also joined by the President of the Business Confederation of the Valencian Community (CEV), Salvador Navarrowho regretted that the EME for 1,622 workers, which Ford will apply at the Almussafes (Valencia) plant, is “very bad news, with no palliatives”, and said that “it would be useful if the automotive sector could count on a red relief mechanism to maintain employment during the transition period until the new vehicle is produced.