Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Spanish bakery producer Panrico is to apply for a redundancy procedure (ERE) which is to make 1,300 workers redundant in Spain. The restructuring initiative is following large losses in the past and adverse business prospects.
The dismissals will affect manufacturing workers (756), sellers (483) and high executives (75), and they are to take place from now on until 2015. As announced, 600 self-employed workers are also to lose their contracts within the same framework, while wages for the remaining workers are to be cut by 35 to 45 pc.
Additionally, dismissed workers are to receive compensation equal to the salary of 20 days per year of tenure up to a maximum of 12 months. Protesting against the dismissals, unions have announced indefinite strikes at various sites throughout the country.
In September 2013, the company had already suspended the pay of all of its employees as a measure to prevent insolvency, and had already cut 300 jobs in 2012 as part of a restructuring (Panrico).
Update: 19-05-2014: The Social Court has allowed Panrico to dismiss 589 of its employees. However, it has rejected the 156 dismissals that the company had planned to make in 2015 and 2016. In addition, the social court has accepted the wage cuts implemented by the company. However, the workers’ council still rejects the measure and they have decided to continue the indefinite strike which was called 7 months ago.
On May 22 the workers’ council will meet with the company to discuss alternatives to the dismissals as they maintain that they can be reduced.
Update 15-07-2016: The Supreme Court has confirmed the sentence of the Social Court, thus accepting the more than 400 dismissals implemented before 2015 and rejecting the 156 dismissals that the company had planned to make in 2015 and 2016. This decision could affect the future of the company. The company BIMBO had announced its commitment to buy Panrico but this decision depended on the acceptance of the collective dismissal by the Supreme Court. Accordingly, it is expected that BIMBO will buy Panrico.
Eurofound (2013), Panrico, Internal restructuring in Spain, factsheet number 76003, European Restructuring Monitor. Dublin, https://dev.eurofound.europa.eu/restructuring-events/detail/76003.
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