This Tuesday, Danone announced a significant development affecting workers at its Salas facility in Asturias, signaling a formal Employment Regulation Registration (ERE) intended to lay off the entire workforce of 79 employees by year-end for productive reasons. The decision marks a pivotal moment for the plant and the surrounding community as the company contemplates its next steps amid changing market demand.
Production for Salas was initially planned to shift toward the Pays de Bray facility in France, where manufacturing capacity will continue to support the Spanish market. This strategic move underscores a broader realignment of Danone’s European manufacturing footprint in response to evolving customer needs and supply chain considerations, with Salas slated to wind down its local production while maintaining product flow through other sites.
The company attributes the decision to several interrelated factors: a downturn in sales of Danonino, the well-known fresh cheese primarily consumed by children, alongside softer demand for other items produced at Salas. Over the past decade, Salas has cut annual output dramatically—from about 33,000 tonnes to roughly 11,500 tonnes today—with around four-fifths of that volume historically linked to Danonino production. Management and union leaders have engaged in discussions aimed at reaching a mutually agreeable solution. They proposed formal meetings over a five-week window, extending into mid-June, to explore alternatives before any formal ERE negotiation progresses beyond the preliminary stage. Under the company’s internal agreement framework, parties may negotiate for up to three months prior to initiating any actual ERE termination procedure.
meeting with the principality
Representatives have stated a clear interest in examining alternatives that would preserve jobs and safeguard regional economic stability. A multinational source cited in local coverage indicated that the initial teleconferenced discussions with the Principality occurred, with a plan for an in-person session in Oviedo scheduled for the upcoming Wednesday. A Danone spokesperson emphasized openness to constructive dialogue, noting that the working group would consider the Principality, the Salas mayor, and the unions in a cooperative mood to identify viable options that satisfy all stakeholders.
Adrián Pumares, secretary general and spokesperson for Foro Asturias, called on other parliamentary groups to support a formal institutional declaration endorsing continued Danone operations in the region and urging regional authorities to back the Asturian Government and the Salas City Council in pursuing solutions that keep the business viable while honoring workers’ rights. The evolving dialogue reflects a broader regional effort to balance industrial strategy with social responsibility as the company proceeds with its restructuring plan.
On the scheduled Wednesday session, a committee meeting and company management will review the documents that outline Danone’s rationale for the Salas plant’s future and will assess the proposed measures that accompany the broader plan. The parties aim to reach a framework that could protect employment where possible and ensure a smooth transition for workers affected by the restructuring while continuing to serve the market needs of Spain through alternative production arrangements.