ERTE update: Unscheduled emergency meeting brings an extension agreement 'much closer'

2020/06/18 20:33:37 Written by Canarian Weekly Business

An unexpected emergency meeting was held this afternoon (Thursday) between the Ministry of Labour, the Trade Unions, and employers representatives, to review the latest proposal for the extension of ERTE from the government.

The new proposal suggests 'ERTE ETOP' which is an exemption from Social Security contributions, not because of force majeure as under the state of alarm, but due to objective reasons including economic, technical, organizational or production reasons.

Sources of the CEOE said they value that the Government has included the ERTE for objective reasons in this aid to entrepreneurs," but as a whole the proposal is still not quite what companies need," whereas the CCOO said that "the agreement may be close," according to Mari Cruz Vicente, confederal secretary of the Union.

The main reason an agreement has not yet been reached, is due to differences of opinions on exemptions.
The employers representatives are still somewhat reticent over the percentages of exemptions to Social Security that companies will maintain beyond the end of June.

With an increasing recovery of activity and fewer restrictions by the Government, the Executive proposes that quota exonerations be maintained until September 30th, but that they be lowered compared to figures in Mondays proposal, whereas employers want full exemption as per force majeure.

The main positive is that all parties are in favour of the ERTE continuing beyond the end of the month, although they are separated by a few 'hows', and are confident an agreement will be made, plus they have arranged a new meeting to continue negotiating.