An employers’ association that unites ceramic manufacturers is represented by Ascer. The energy crisis and the war in Ukraine have produced an aid package that stakeholders say is clearly insufficient to protect the industry. The main region involved is the community sector, which accounts for 12 percent of industrial employment in the area and 18 percent of total employment in Castellón. The approved text raises doubts about its application and creates uncertainty for companies at a moment when the economy needs stability, not more questions.
The Royal Decree Law published on Wednesday in the Official State Gazette and outlined after Tuesday’s cabinet meeting states that products containing intense gas, such as ceramics, may qualify for direct aid of up to 125 million euros. After reviewing the document in detail, the maximum grant for a single company can reach 400,000 euros, calculated at 5,000 euros per employee. Industry representatives point out that this sum is small when compared to recent monthly natural gas bills that can reach around two million euros. The sector averages about 103 employees per company, though large producers and numerous SMEs exist, meaning many firms will still bear the burden.
The general secretary of Ascer, Alberto Echavarría, commented that the industry expected a stronger response and more measures still to come. Proposals include lowering gas tolls, reducing hydrocarbon taxes, and suspending payments for companies affected by the energy crisis to improve liquidity for production and employment. The European Commission has authorized up to 50 million euros per company for energy cost relief. From the industry side, there is a call for the Spanish government to ensure the aid offered reaches the maximum allowable threshold. There is concern that the commission can approve substantial aid while Spain limits assistance to a much smaller cap of four hundred thousand euros per company.
Electric
Government actions show a stronger push to cut electricity costs, a policy that ceramics firms can benefit from indirectly. The Tile Workers Union estimates a potential 36 percent reduction in electricity and energy charges. Sector data indicate that electricity charges can make up about half of the fixed portion of a factory’s bill for many firms in this sector.
In addition, an 80 percent toll discount is established for electro-intensive industries. Many ceramic tile manufacturers are not included in this electro-intensive category, so they cannot access the subsidy. Given the European definition of electro-intensive sectors, the entire industry could still gain from the toll reduction measure.
Business decisions
One point of disappointment for Ascer is the restriction on dismissals. If a company demonstrates the energy crisis and the conflict in the East as justification, the general ban on dismissals for objective reasons related to the occupation in Ukraine, which applies to firms seeking ERTE relief, is seen as regrettable. The most likely outcome would be that companies pursue layoffs directly, according to the employers’ association.
Impact on employment
Since the start of the year, many ceramic firms have begun using temporary layoff schemes. Ascer outlines an approach to explaining the crisis’s impact: ERTE measures mainly affect line workers, who make up about 60 percent of the sector’s workforce. This suggests that more than 40 percent of production workers were affected. Data from the workgroup show 27 ERTE files impacting a total of 3,930 employees. An additional roughly 200 workers in related roles, like atomizers, are affected as well.
On the other side, gasIndustrial, representing major energy users in the Castellón tile cluster, notes that government measures are positive but clearly insufficient because they exclude other severely affected sectors. They point out that gas prices for industry can multiply fivefold and have at times surged to ten times the historical average since the organized market began trading. With these high gas costs, the European Commission has empowered member states to offer direct subsidies with defined criteria and eligible costs.