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INPRIMATU
Fagor-CNA Confirms to Workers the Closure of the Barley Washing Plant
  • The management has not presented a feasibility plan and the workers have been “disappointed” because the Catalan team is still planning to fire 30 people for the time being.
Urko Apaolaza Avila @urkoapaolaza 2017ko uztailaren 06a

After Edesa Industrial presented its pre-insolvency status last week – the old Fagor Appliances – the waters are turbulent in the Mondragón plant and concern has spread among the workers. On Wednesday, he announced that the management will close its washing machine line in Garagarza from September and leave 30 people on the street as a result.

Thursday was a day of more explanations, both to the business committee and to the Mondragón City Council and the Basque Government, which subsidised the resumption of the plant.

The workers were disappointed with what the company’s representative, Jorge Parlad, told them in the morning: the management has no intention of rejecting the employment regulation dossier, and what is more serious, has not presented any future plans. They say that with this attitude, the conflict is inevitable.

In any case, Parlad explains that they do not intend to present the bankruptcy of creditors, for the moment they have resorted to pre-bankruptcy to gain time to solve their 100 million euro debt with banks and suppliers.

The company that was the most representative of the Mondragon Group bottomed out in 2013 with a debt of 1 billion euros on top of it, and about 1,700 people were left on the street – at the time Mondragon began a plan to relocate hundreds of cooperative members. CNA acquired the Fagor Appliances production chain in 2014 and the company pledged to create 800 direct jobs in the medium term.

The mayor of Mondragón, María Ubarretxena, explained to the Superior that the alarming information about the march of the plant in the City Council was being disseminated a long time ago: "When we were in town we had close information that told us things weren't going well."

It is only necessary to know what the position of the Basque Government will be from now on, but the Minister of Economic Development, Arantxa Tapia, has already declared the behavior of the ANC "unacceptable".