XEAL will activate the furlough scheme approved in February 2019.

CEE, SEPTEMBER 16, 2020.- XEAL, Xallas Electricidad y Aleaciones, this morning informed the Works Committee of its intention to activate the furligh scheme that was approved in February 2019. The decision is motivated by a steady drop in demand since the beginning of the year and has been substantially aggravated by the economic crisis derived from COVID-19, which has led to a reduction in the production of steel producing companies and stagnation in the activity of their end customers (construction and automotive industries).

XEAL approved the furlough scheme in February 2019 and had the support of the union majority, with a period of application between March 1, 2019 and February 28, 2021. However, since its approval, it had not been implemented. It is therefore a temporary measure with a maximum duration of five months, the sole purpose of which is to adjust activity to the expected demand for the period.

The furlough scheme will be applied on a rotating basis and will affect around 30% of the workforce each month. In addition, to facilitate its implementation, the company will open a period from September 18, for those workers who wish to join voluntarily. The furlough agreement for 2019 includes a salary supplement of up to 85% for the affected workers, and 100% of the extra payments and 100% of the vacations will be respected.