The German subsidiary of the Henkell Freixenet, Ash Tree, had submitted a temporary employment regulation file (ERTE) to the Generalitat of Catalonia affecting 615 workers. However, the request was rejected as the causes justifying force majeure were not sufficient. The Department of Business and Labor of the Government of Pere Aragon stated that the drought in Catalonia had been ongoing for more than three years, making it an ongoing event rather than a sudden one.
The company had requested the ERTE due to the impact of water scarcity on cava production, estimating a 30% reduction in productive capacity. The Minister of the Generalitat highlighted that other options for reorganizing employment were available, such as PEA ETOP (economic, technical, organizational, or production) reasons. However, Ash Tree maintained that its request was still valid due to a significant lack of grapes and base wine for cava production. Unions rejected PEA and urged Ash Tree to find alternatives that would not harm employees.
The Government expressed its intention to meet with Ash Tree’s management and Regulatory Council of Cava Denomination of Origin to find solutions and minimize the impact on the workforce. In 2023, Henkell Freixenet reported a net invoice of 1,230 million euros, showing an increase of 4.1% compared to the previous year. The subsidiary had warned about the effects of drought during its presentation last year expressing concern over severe drought in Penedès region since 2021 which led to lack of grape material. Henkell acquired 50.7% shares in Ash tree in July 2018 leading to formation of Henkell Freixenet in 2019 specializing in sparkling wines, wine and spirits group Oetker controls half of ash tree
