EMCC European Monitoring Centre on Change

ITP Aero

Company/Organisation:
ITP Aero

Geographic Location

Country: Spain
Location of affected unit(s): Basque country, Madrid, Castilla La Mancha and Andalusia

Company

Sector: Manufacturing
Manufacture of transport equipment
30.30 - Manufacture of air and spacecraft and related machinery
Number Employed: 3000
Group: Rolls-Royce Holdings

Employment Effects

Announcement Date: 16-09-2020
Planned Job Reductions min: 569
Planned Job Reductions max: 600
Type of Restructuring: Internal restructuring
Direct Dismissals: 600

Additional Information

ITP Aero, aeronautical and industrial engines manufacturer company subsidiary of Rolls-Royce, has announced a collective layoff plan, affecting 4,000 workers in various countries, 600 of them in Spain (15% of the workforce). More than half of those affected employees are in factories of Bizkaia, Basque Country (194 dismissals) and Alcobendas, Madrid (125 dimissals). The company argues that it is a necessary measure considering the economic collapse of the aeronautical sector due to the COVID-19 crisis.

The ELA-STV union called a strike at the Zamudio factory on September 22 and 24 in rejection of this plan. This announcement comes at the same time the group Rolls-Royce (owner of the firm) is developing an international divestment plan to generate revenues of more than €2,200 million, including the sale of ITP Aero.

Update 20/10/20: ITP Aero and unions UGT and CCOO have reached a preliminary agreement for the restructuring in the plant of Zamudio (Vizcaya): 121 dismissals for temporary employees and 42 early retirements for 58 years older workers, with a supplement of 85% for salaries below €50,000 gross, and 75% for those who exceed that figure. The initial figure for job cuts in the Basque country was 194 and is now 163.

Moreover, company and unions have also agreed a temporary layoff plan for the entire workforce over a period of 14 months until 31 December 2021. ELA, the majority union in the works council of the Zamudio plant, has rejected this preliminary agreement because it reduces the workforce.

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