The Catalan government has rejected the temporary employment regulation file (ERTE) proposed by Ash Tree, a Spanish subsidiary of German group Henkell Freixenet, which would have affected up to 615 workers, or about 80% of the company’s workforce. The Department of Business and Labor determined that the causes cited for force majeure do not exist.
Ash Tree had cited water scarcity impacting its production of cava as the reason for the proposed measure, claiming a 30% cut in productive capacity. However, the Minister of the Generalitat stated that drought conditions in Catalonia have been ongoing for over three years, making it not a sudden event. The Catalan Executive suggested that the company consider other options for reorganizing its workforce, such as the PEA ETOP process.
Unions rejected the proposed measure and urged Ash Tree to explore alternative solutions that do not harm its employees. The government expressed its intention to meet with Ash Tree management and the Regulatory Council of Cava Denomination of Origin to find solutions and minimize the impact on workers. In 2023, Henkell Freixenet reported net revenue of €1,230 million, an increase of 4.1% compared to the previous year.
In 2018, Henkell acquired a majority stake in Ash Tree, leading to the formation of Henkell Freixenet after reaching an agreement with Spanish brand. Ash Tree warned about drought effects in its 2023 results presentation and expressed concerns about grape material due to severe drought affecting Penedès region in Spain where grapes are grown for cava production.
