An ERTE extension will be approved next week by congress

2020/06/11 08:54:03 Written by Canarian Weekly Business

The Ministry of Employment agrees to extend ERTEs until the end of September with the option to extend them until the end of the year, but the commission still needs to meet again to confirm for which sectors it will apply to after the summer.

An official agreement for the extension of ERTEs beyond June 30th is "close", according to sources of the commission, confirming that the intention is that the pact can be approved next week in the Council of Ministers, to give security to companies and workers.
Although the details are being finalized and there are still issues to negotiate, the idea is to extend the ERTE at the moment for another three months, until September 30th, and to maintain the commitment that it will be supported for a longer time to the sectors and activities that need an extension after the summer.

The Executive met on Wednesday with the unions and the employers representatives in the tripartite commission on the future of the ERTE.
Although the meeting ended without a consensus document in place, sources say it is possible they will reach an agreement in the next few days, to be able to approve it next Tuesday in the Council of Ministers, or in an extraordinary council later in the week.

A spokesperson said "The intention is not to wait until the last minute of expiration of the measure, but to give certainty to companies and workers affected by an ERTE." Companies and employees are both awaiting what happens with the exemption from Social Security contributions of employees included in an ERTE, and the more guaranteed unemployment benefits that those affected receive, whose current conditions expire at the end of this month.

The leader of the employers union CEOE, Antonio Garamendi, asked that the agreement be reached before Monday June 15th, to reassure companies and employees of their short term future, but it seems that a solution will take a little longer to be formally approved.

The extension proposed by the Ministry of Labour until September 30th, as opposed to December 30th required by the employers' association, is not that the latter will be rejected, but they want to clarify which sectors outside of tourism and hospitality will benefit, and also to see how the economy evolves in summer and whether or not there is a re-emergence of the pandemic in autumn

These are circumstances that will have to be taken into account in the configuration of this labour measure by Labour Minister Yolanda Díaz, who publicly positioned herself to extend ERTEs until the end of the year in some sectors, in an interview last week.