ERTE extension agreed in principle to 30th September

by Deborah Cater
ERTE extension agreed to 30th September
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MADRID – Today, the government will approve the ERTE extension to 30th September. This follows approval by unions and businesses of the last proposal put forward by the Ministry of Social Security.

The agreement to the extension of the temporary employment regulation files (ERTE) until September 30 on Wednesday afternoon was the result of intense weeks of negotiations.

There are still around 560,000 employees on the ERTE scheme.

Unions and government not seeing eye to eye

Minister of Inclusion, Social Security and Migrations, José Luis Escrivá, adjusted his proposals in order for an agreement to be reached.

The employers and unions defended the rights of workers with the renewal of the ERTE scheme. Escrivá wished to change key elements of the scheme, reducing the protection for businesses which had not started trading again. His idea is to establish strong incentives for companies to leave the ERTE scheme.

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His proposals depend on a summer with the expected economic recovery, which of course cannot be guaranteed.

Finally, Escrivá tweeted, “We have managed to reach a consensus to renew the ERTE scheme until September, striking a good balance between protections and incentives to reactivate workers”.

Final act to reach agreement

The last offer put forward by Escrivá, which the employers and unions accepted, maintains the exemptions in force for the months of June, July and August (of 85% and 75% depending on whether the companies have fewer or more than 50 employees) for those workers who are covered by an ERTE. These would then reduce in September (70% and 65%, respectively).

However, the new variation increases the size of bonuses for those companies which leave the ERTE scheme and reinstate their workforce. They are 95% and 75%, according to the volume of the workforce. This represents an increase of 5% in the first two months and 10% in the following months for all companies.

This is the fifth extension of the furlough scheme.

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