Overview of the Tile Industry’s Employment Challenge
The tile sector is facing extended project timelines and ongoing uncertainty as authorities grapple with the fallout from the energy crunch. Administrative processes are moving faster, yet the industry continues to see a rise in workers affected by wage and employment protections. The core issue is steady: rising energy costs and slow government action are compounding job stability concerns for manufacturers and their employees.
From January 1 to October 16, official data show that 9,075 workers in the sector are impacted. Most of these cases, 8,662, involve temporary employment adjustments under what is commonly known as a suspension or postponement of work, across 77 separate petitions. A smaller portion, 413 workers, are classified as layoffs or terminations, highlighting the vertical strain in the workforce. These figures come from the regional employment authorities and reflect a sector-wide trend rather than isolated incidents.
Industry group Ascer reports that the sector employed 17,180 workers at the end of 2021. With the current figures, more than half of the wage earners are facing either temporary or permanent unemployment, placing the overall impact at roughly 53 percent.
Temporary Reductions and Collective Employment Actions
Three companies have filed collective dismissal plans (ERE) as part of addressing cost pressures. Todagres, Azulejera Alcorense, and Halcón are currently managing these processes, while two other firms are in active negotiations to resolve similar workforce adjustments. A new meeting is set for October 20 to advance discussions on more than 160 planned layoffs at Todagres.
Workforce Evaluation and Government Intervention
Enric Nomdedéu, the regional secretary for employment, warns that forecasting the near future remains difficult due to unfavorable indicators. He notes that the problem is not rooted in internal sector inefficiencies; the industry generally operates well and demonstrates solid practices in emissions reduction. If external factors drive the challenges, solutions must also come from outside the sector. He advocates immediate government intervention to address energy pricing, particularly for natural gas. The regional administration acknowledges that it does not control these market prices and can offer only mitigative measures at present.
Upcoming Discussions on the Labor System
The regional leader points to a scheduled meeting on Monday with key policymakers to press for the inclusion of tile sector ERTEs in government support mechanisms. The regional government will participate, along with the employers’ association and labor representatives. As reporting continues, industry leaders are seeking to extend protection through the Red system, which could provide greater exemptions for social security contributions and preserve employee benefits during economic distress. The contrast with traditional ERTEs lies in higher exemptions and protections that help balance employer costs with worker stability.
Gas prices have shown some stabilization, but relief remains uneven. The European benchmark for gas, known as TTF, has eased from recent peaks, while regional indices vary in their impact on electricity pricing. Industry leaders point out that even with price declines, contracts often pegged to longer-term benchmarks can leave manufacturers exposed when market volatility reappears. The broader market outlook remains uncertain, with futures pricing signaling potential price swings, especially as seasonal demand shifts occur.
Analysts emphasize that price movements are driven by a mix of factors, including gas storage levels, domestic demand, and weather forecasts. A colder spell could lift energy consumption and drive prices higher, reintroducing pressure on production costs. In the meantime, the industry must navigate a complex web of energy markets and employment protections to sustain operations and protect workers.