Spanish cava producer Freixenet has announced plans to temporarily lay off 615 workers, nearly 80% of its workforce, due to a severe drought in the Penedes area of Catalonia.
The measure is expected to take effect in May, and the company has not specified the duration of the layoffs. This makes Freixenet one of the first companies in Catalonia to respond to the region’s worst drought on record with a layoff plan.
The company has presented the plan to Catalan labor authorities and submitted it to the workers’ unions.
As the impact of fossil-fuel driven climate change intensifies across southern Europe, drought since 2021 has caused a shortage of grapes. Last year this was acute in the company’s home area of Penedes, the cava producer said.
Under Spain’s ERTE law, companies that are facing exceptional circumstances can temporarily lay off employees or reduce their working hours.
“The measure … is aimed at guaranteeing the viability of the business and preserving employability in order to face external causes and force majeure caused by the severe drought,” Freixenet said.
Unions representing the workers did not immediately respond to a request for comment.
Vineyards across Catalonia’s renowned Penedes cava-producing region are so parched that the roots of 30-year-old vines have died, leaving shrivelled red and green grapes languishing under the intense sun.
