Ford closes ERE contract for 1,144 workers with early retirement and benefits

The Ford management in Spain and the majority union in the Almussafes factory (Valence), UGTthey reached this tuesday a agreement apply employment document (ERE) that will affect 1,144 workers. It will be realized, according to Europa Press, through plans for early retirement at the age of 53 and a program of incentive departures in which the company raised the amounts of the proposed benefits.

The Factory in Valencia, with about 5,900 employeesthis Tuesday he hosted the ninth session of the ERE negotiation committee, which ended with an agreement between the management and the UGT – without the STM union, after a month of meeting in which unions and businesses debated the early retirement age and benefits conditionswith the aim of attracting a sufficient number of workers on a voluntary basis to avoid traumatic departures.

This Monday, the company presented a proposal for an agreement in which agreed to reduce the early retirement age to 53, as requested by the unions, but under different conditions than other older workers. The unions rejected it, and the management announced that it would make a final proposal this Tuesday.

Now UGT has finally explained it the company agreed to its “main request” and offered exit plans on a voluntary basis for those born in 1969 and 1970. “It also significantly improved the amounts offered for incentive leave,” noted the union, which He “believes” that the agreement will serve to solve ERE in a “100% voluntary way”.

In this way, the union pointed out, end “complicated negotiationsboth because of the number of proposed redundancies and because of the existing age groups in the factory”, and UGT adds that “it was crucial to have the agreement for electrification, because, in addition to guaranteeing the continuity of the factory, it made it possible to demand commitment from the local and European management of Ford which it has towards the workforce”, “which is why it was obliged to lower the age limits for adhering to the plan and set decent conditions for leaving”.

Adjustment conditions

The contract for ERE consists of an early retirement plan that can be join workers from 53 years and others compensatory economic benefits.

In the early retirement plan, workers from 53 and 54-year-olds will receive 75% of the prescribed salary until they turn 57 year ia 80% after thatcompared to this Monday’s offer with percentages of 70% and 75%.

The payment deadline gross income and special contributions for social security will be up to 62 years old in the case of employees aged 52 to 63 for workers aged 54.

Employees who sign up at ages 55 and 56 will receive 80% of the prescribed salary until age 57 and 85% after that, as the company proposed Monday.

The maximum term for payment of gross income would be until the age of 64 for the workforce aged 55 and until the age of 65 for workers aged 56. In the same way, the maximum payment date of a special contract with social security would be until the age of 63 or 64.

The workers aged 57 or older will receive 85% of wages monthly regulator, with special agreement with social insurance and the maximum date of payment of gross income up to the age of 65.

As regards the compensation plan, all employees born after January 1, 1960 will be eligible, with the exception of those on temporary contracts, benefits or access to partial retirement.

The administration increased the additional compensation for voluntary departures to 40,000 euros in case they take place by June 30 and kept it at 20,000 euros for departures until September 30.

In addition to this amount, employees up to the age of 54 will receive compensation of 45 days per year worked, with a maximum of 42 monthly wages and a minimum of one annuity. Employees between the ages of 55 and 63 will receive the compensation stipulated in the contract.