The company proposes this measure for six months from September 1 due to the reduced order intake.
reunited tubes announced its intention to the works council of the factory in Amurrio (Álava) on Monday present an ERTE for virtually the entire workforce, which would in principle have a duration of six months from September 1.
As reported by sources familiar with the business decision, the negotiating table for this ERTE is expected to be assembled in principle next week, which is a 50% discount of the working day.
The same sources have indicated that the company has proposed this temporary production adjustment measure with the intention of reducing the “necessary flexibility“to deal with the drop in orders this has been observed in recent months.
Exactly last week, during a meeting with the media ahead of the company’s shareholder meeting, the executive president of Tubos Reunidos, Francisco Irazustareported that the inflow of orders had slowed “significantly” in recent months, which would have a significant impact on the group’s second half results, although in line with what was stipulated in the Strategic Plan.
In particular, on the board of directors, the company’s managers pointed out that this decrease in orders is related to the large stock of tubes at distributors, as well as the increase in interest rates, resulting in delays in the projects.
Source: EITB
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