ArcelorMittal Spain Updates ERTE Agreement After Plant Closures
The steel multinational ArcelorMittal has reached an agreement on an employment regulation file (ERTE) in response to the temporary closure of blast furnace A and other facilities in Gijón due to softening demand. The deal specifies that the ERTE will apply to plants in Spain for a three-month period, ending on December 31, and not through the end of 2023 as initially planned. The understanding is binding between the company and a union majority consisting of UGT, CCOO, and USO, with Basque unions expected to respond in the coming days.
As part of the agreement, the company will increase the wages of workers under the ERTE who are on temporary employment measures. Wages will rise to up to 90% of the gross annual salary, up from an initial offer of 75%. In addition, the scheme will provide a 100% surcharge and holiday compensation, effectively covering 93% to 95% of the total remuneration due during the ERTE period. This adjustment aligns the new ERTE with conditions that were in place from 2009 and stayed in effect through 2021.
The deal reached in Etxebarri also includes the implementation of training programs defined by the Labor Code and the creation of a commission to monitor the agreement at both local and national levels. This committee will oversee compliance, training delivery, and the ongoing evaluation of the ERTE’s impact on workers and operations.
Under the negotiated terms, the ERTE implementation will be targeted and limited by geography and workforce size. In Asturias, the measure will affect no more than 25% of the workforce, a cap compatible with the group’s 5,000 roles out of 8,073 in Spain. In Sagunto, the limit can reach 40%; in Etxebarri, up to 20%; in Lesaka, as high as 60%; and in the longer Olaberria-Bergara segment, up to 20%. The policy will not be applied at facilities running at full capacity. The overall strategy restricts ERTE coverage to specific sites and workflows while preserving full employment at fully productive plants.
The ERTE’s effect on transversal service personnel is capped by the percentage applicable to the facility where those workers are stationed, ensuring proportional treatment across corporate support functions. At the request of UGT, ArcelorMittal has also assumed responsibility for managing the earlier covid-era ERTE for all employees before the end of the year, consolidating the company’s approach to workforce protection amid ongoing market fluctuations.
Overall, the agreement emphasizes targeted relief for plants experiencing reduced demand while safeguarding the core workforce and providing pathways for training and monitoring. The arrangement seeks to balance operational continuity with fair compensation for personnel affected by temporary disruptions, and it reflects ongoing negotiations among workers’ unions and management as market conditions evolve.