This is how the new ertes will be: how does it affect workers and which companies will be eligible?

The new sections of the ‘RED Mechanism’ must be authorized in the first instance by the Minister councilIn order to finance them, the State will have to put extraordinary aid on the table. And the Ministry of Economy may establish indicative indicators, which will be reviewed periodically, to measure according to the situation of each moment, to guide the company. If they meet these parameters, they will have more numbers than the Council of Ministers authorizes them on erte. Then the companies, once they have the ‘ok’ from the Government, must follow the steps of a traditional erte for their final authorization.

The classic ertes are requested before the competent labor authority. This, in most cases, is the autonomous community where the affected workplace is located. In the case of Catalonia, the window is the Department of Labor of the Generalitat. If the firm has more than 50 employees, it must open a consultation period between the company and workers of 15 days, if the workforce is less, this period will be shortened to seven. But formal negotiation between company and committee is necessary in both cases. If the erte affects several work centers, of several autonomies, the management of the company must formalize it before the Ministry of Labor.

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