Mango joins the records of the temporary use of textiles caused by the coronavirus. The Catalan company has activated a contingency plan that includes the presentation of an ERTE due to force majeure that will take effect from March 14 and that affects 4,767 employees, mainly from the commercial network in Spain, as well as workers from its logistics center in Lliçà d'Amunt and its headquarters in Palau-Solità i Plegamans.

Last Saturday, March 14, the more than 400 stores that the firm has in Spain closed. "Our priority is to guarantee the jobs of all our collaborators. With this objective, we will adapt our capacities and structure to the circumstances that each moment requires in order to recover normality as soon as possible," said Toni Ruiz, Mango CEO.

The coronavirus crisis has caught the company at a time when it had managed to turn its numbers around and go from loss to profit.

With the intention of "minimizing the impact caused on the collaborators affected by the ERTE, Mango has decided to supplement his salary up to a maximum of 2,000 euros in the month of March". In addition, all those bonuses and incentives accrued during the month of March will be paid at the end of the month, he noted.

The entire management of the company will significantly adjust its remuneration for the duration of this exceptional situation, starting with the newly appointed CEO , Toni Ruiz, who has decided to forgo any type of remuneration during this period.

The Galician giant Inditex announced on Thursday that it will cover the cost of the entire workforce, without resorting to erte, until April 15. After this period, if the state of alarm is prolonged, it will present a "preventive order" for store personnel (25,000 workers). If this happens, it will assume the cost of the supplements so that the workers receive their remuneration. In any case, it will not affect logistics personnel or central services.

An erte is a temporary suspension of employment, not a termination of it. The workers are not fired, but are sent home and receive from the company until the day the Erte begins. From now on, they will collect the provision of the Public State Employment Service (SEPE) for the emergency plan approved by the Government.

When the state of alarm is lifted, El Erte will stop and these workers will join their positions and the company will continue to pay their payrolls (SEPE will no longer do so). The launch of an Erte includes a commitment by the company not to fire.

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  • Mango
  • Spain
  • Inditex Group

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