The Government now agree to extend the ERTE beyond December into 2021

2020/09/14 16:57:41 Written by Canarian Weekly Business

The government and social agents are continuing to negotiate the new extension of the ERTE, which they hope to have agreed this week. Today they held a new meeting after the Ministry sent them a proposal last week, with a new extension until the end of the year that cut aid and rights to workers, and did not satisfy either unions or employers representatives.

Little progress has been made in this meeting, according to sources close to the negotiation, however the Government has been willing to give in to some aspects, such as agreeing to maintain the current amount of the ERTE benefit, however, they want to continue with their idea of ​​suppressing what is known as a ‘zero counter’, which means that the right to any benefits consumed during the ERTE remains right, in the future, in the event of a hypothetical dismissal, and is not reset to be calculated from October 1st.

One of the pitfalls of this new extension is the time period, since at the moment only ERTEs were extended until December 31st, while the social agents want an extension indefinitely, or at least until April, when the next tourist season begins in many parts of the country. The Executive seems willing to give in and expand that time limit a little more, although they haven’t agreed to extend to Easter as yet, according to the Minister of Labour, Yolanda Díaz, and her counterpart from the Social Security, José Luis Escrivá.

Díaz said she is willing to extend it ‘a little longer’, since she admitted that the deadline until December 31st is a mistake, and is not "adequate", since it would end in the middle of the Christmas holidays, and would not be economically or socially viable to start negotiating a new extension in the middle of December.

José Luis Escrivá, assured yesterday in a radio interview that it is necessary to "focus aid", since "money is limited", to the sectors that need it most and specifically named those related to tourism, air transport, travel agencies, leisure activities, etc, since, in his opinion, they will not be able to recover the activity for a few months, in many cases until the next summer season begins in the mainland and Balearics. "It is becoming increasingly clear that we have to focus aid on those sectors that must be supported so that they can return to activity at some point next year," he explained.