Consequences of Aernnova’s labour force adjustment plan in Berantevilla, La Rinconada and Cádiz

Subject: Consequences of Aernnova’s labour force adjustment plan in Berantevilla, La Rinconada and Cádiz

On 18 November 2020, Aernnova submitted a labour force adjustment plan in Berantevilla (Álava province), La Rinconada (Seville province) and the free zone of Cádiz. It said that it had experienced a fall in revenues owing to the COVID-19 pandemic, which was particularly detrimental to the aeronautic sector, leading to losses of some EUR 42 million between March and November.

Air traffic has plummeted, airlines are in crisis and the volume of orders to suppliers of components has halved. These losses are affecting both large manufacturers and their suppliers, such as Aernnova, and are having a great impact on the work force. Given these circumstances, Aernnova has decided to cut its total workforce of 4 500 employees across 14 sites in seven countries by 20%.

1. Will the Commission propose a European support plan for the aeronautic sector to mitigate the negative consequences of the pandemic, and allow all affected countries to emerge from the crisis together?

2. Will the Commission ensure that any support to Aernnova and other companies in the sector is conditional on maintaining the same level of employment, working conditions and rights?

Answer given by Commissioner Breton on behalf of the European Commission (5 August 2021)

The Commission has taken a series of actions to mitigate the effects of the COVID-19 pandemic on the aerospace industry, such as a Temporary Framework for state aid measures to support the economy (1), suspending the use-it-or-lose-it rule for airport slots in March 2020 (2) and establishing guidelines and recommendations in June 2020 to help Member States gradually lift travel restrictions (3). Going forward, the sector’s greening will be of high importance. The new Sustainable and Smart Mobility Strategy (4) adopted in December 2020 outlines an ambitious policy agenda, for the aviation sector, proposing to have zero-emission airplanes commercially available by 2035. The Commission promotes the up and reskilling of the workforce, including in the aerospace industry, under the updated Skills Agenda and its actions, such as the Pact for Skills.

The Spanish Government has not submitted any individual state aid notification to support Aernnova. The Commission has approved aid schemes in Spain under the Temporary Framework in support of enterprises, including in the aerospace industry, which require individual notifications only if the aid to be granted exceeds certain thresholds.

Investments and reforms under the Recovery and Resilience Facility (5) could also support the aeronautics industry, notably in the areas of up and reskilling, strengthening economic and social resilience and helping workers and companies in the green and digital transitions. The European Globalisation Adjustment Fund, the European Social Fund (6) and the European instrument for temporary Support to mitigate Unemployment Risks in an Emergency (7) can help mitigate the effects of the pandemic and support recovery and REACT-EU can support job creation and small and medium-sized enterprises.

⋅1∙ https://ec.europa.eu/competition/state_aid/what_is_new/covid_19.html .

⋅2∙ https://ec.europa.eu/commission/presscorner/detail/en/statement_20_431

⋅3∙ https://ec.europa.eu/commission/presscorner/detail/en/ip_20_1035

⋅4∙ https://ec.europa.eu/commission/presscorner/detail/en/ip_20_2329

⋅5∙ https://ec.europa.eu/info/business-economy-euro/recovery-coronavirus/recovery-and-resilience-facility_en

⋅6∙ See website of the Spanish authority in charge of managing ESF, Unidad Administradora del Fondo Social Europeo (UAFSE):

http://www.mitramiss.gob.es/uafse/es/properativos/index.htm, and information on the regional ESF Operational Programme of Andalucía: https://www.juntadeandalucia.es/organismos/haciendayfinanciacioneuropea/areas/fondos-europeos/paginas/programacion-operativo-fondo-social.html ⋅7∙ Council Regulation (EU)2020/672 of 19 May 2020. The EU made available EUR 21.3 billion to Spain under this instrument to finance short-time work schemes or

similar measures.