Spanish Congress Considers Law to Ban Layoffs from Business Relocation Outside the EU
The Spanish Congress debates a Sumar party bill to prohibit layoffs linked to corporate relocation outside the EU, protecting workers and enhancing transparency in business sales.
- • The law aims to ban collective layoffs for businesses relocating outside the EU or EEA.
- • It proposes reimbursing public aid received by companies if they relocate and initiate layoffs.
- • Transparency in business transfers and union participation in negotiations are mandated.
- • The bill cites cases like Sekurit in Avilés and companies such as Zara and H&M as examples of delocalization impacts.
Key details
On February 24, the Spanish Congress is set to debate a legislative proposal introduced by the Sumar party that would prohibit collective layoffs for companies that relocate their industrial or business activities outside the European Union (EU) or the European Economic Area (EEA). If admitted for parliamentary processing, the initiative would undergo amendments and could be delayed for several months before final approval.
The bill aims to protect workers affected by delocalization, a situation exemplified by the case of Sekurit, a plant owned by the French multinational Saint Gobain in Avilés. Sekurit is currently facing collective layoffs because a significant portion of its production has been moved outside the EU. The proposal also highlights companies like Zara and H&M, which have experienced multiple rounds of relocations impairing workers' rights.
To address these challenges, Sumar intends to amend the Workers' Statute to forbid companies relocating outside the EU from executing collective layoffs or contract terminations based on objective causes related to the relocation. Moreover, the law mandates that companies receiving public aid within the four years prior to relocation must reimburse those subsidies if they proceed with layoffs.
The initiative also advocates for increased transparency in business sales or transfers, requiring detailed information to be provided to employees and allowing union involvement in negotiations between sellers and buyers. This aspect aims to reinforce democratic principles within companies and safeguard workers' rights during corporate crises.
This legislative effort marks a significant move in Spanish labor protection policy, addressing the adverse social and economic effects of corporate delocalization and fostering accountability for businesses relocating outside European territory.
This article was translated and synthesized from Spanish sources, providing English-speaking readers with local perspectives.
