Benetton has launched an Employment Regulation File (ERE) that will mean the dismissal of 169 workers, 24% of its workforce, and the closure of 31 stores in Spain. The company’s management presented the ERE on December 20 and the period of talks with the unions will conclude tomorrow, after several meetings.
As reported by the UGT union, the Italian company alleges economic, organizational and productive causes. The chain offers compensation of 24 days per year worked with a maximum of 12 monthly payments, as well as a bonus of 1,500 euros for certain groups (older 50 years old, pregnant women or people with disabilities, among others). Besides, proposes a series of relocations in 30 vacant stores spread across Madrid, Barcelona, the Balearic Islands and Girona. UGT admits the company’s economic problems, but denies that these are due to the increase in salary costs and maintains that the file is flawed due to “lack of motivation.” According to the union, Between 2021 and 2021, business income in Spain rose by 16.54%while salary costs did so in a much smaller proportion. 5.67%.
On the other hand, there are other items that grew much more. So, for example, raw material costs and financial costs rose by 43.98% and 61.29%, respectively. Looking ahead to 2024, the group had announced its forecast to reduce its global sales by up to 20% at the end of the year, to 880 million euros, compared to the 1,098 million it entered the previous year. The company recorded losses worth 230 million euros in 2023, as announced by the group itself last June, which is now in a tough fight with one of the founders of the brand, who even has it in his last name: Luciano Benetton . Luciano announced last year, at 89 years old, that he was leaving the presidency of the group and accused its CEO, Massimo Renon, of sinking the accounts of the fashion brand, leaving “a hole of 100 million euros” after four years at the head of the entity.
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