The Government approves extending the ERTE until January 31 and those affected will maintain 70% of their salary

“If there is an autonomous community that needed that agreement, it is the Canary Islands, because 60% of the workers covered by ERTE due to force majeure belong to the hotel and commerce sector,” says the Canarian president

September 29 2020 (17:23 WEST)
Updated in September 29 2020 (19:26 WEST)
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The President of the Government of the Canary Islands, Ángel Víctor Torres, has valued the agreement endorsed this Tuesday by the central Executive, the unions and the employers to extend the Temporary Employment Regulation Files (ERTE) until January 31 next.

"It is the best example of what Spain and the Canary Islands need at this time.” “What has been achieved today is something to be satisfied with because it provides key peace of mind in the coming months, both for employers and workers," Torres highlighted, who once again asked, in the regional Parliament, for maximum political unity and to move away from the discourses of no as a system in the face of any proposal, plan or agreement conceived to face the consequences of the socioeconomic crisis caused by COVID-19. 

In addition, Torres stressed that this unanimous agreement, which will be approved this Tuesday as a royal decree-law in the Council of Ministers and which must then be ratified by Congress, is "essential" for the Archipelago until the current panorama of the COVID-19 pandemic changes.

In his opinion, it is "a crucial agreement" so that there is no reduction in the income of workers in ERTE, who will continue to receive 70% of the regulatory base as a benefit, and not 50% as had been planned for when the first six months in that situation had passed. In addition, these employees will not consume unemployment benefits. In turn, the extension of the ERTE until next January includes tourism and activities linked to it in the force majeure modality.

 

"It gives key peace of mind for the coming months"

In an appearance before the media, Torres insisted on the relevance of this tripartite agreement and alluded to the importance that the additional provision referring specifically to the Canary Islands, which was included in the royal decree-law in force until this September 30, has had in what has been achieved this Tuesday. 

"Thanks to this legal lever, we have now been able to include, after an agreement by the Canary Islands Labor Relations Council with the unions, the island employers and the regional government, the points requested from Madrid," he said. 

The president also highlighted the exemptions in Social Security contributions for companies that want to keep active workers and for those who are in ERTE. "This is a novelty and a specific request from the Canary Islands,” he pointed out. In addition, there will be ERTE outbreaks with an exemption in the payment of Social Security for companies of up to 100% in the first month, October.

Entrepreneurs will also be able to take advantage of other advantageous formulas (up to three ERTE modalities), while those of force majeure will not have to apply again. According to the president of the Canary Islands, there are 60% of workers in the Islands in ERTE in the hotel and commerce sector, which will be maintained until January 31, but with an additional provision in the new royal decree-law to extend them if necessary from that month, always bringing together the tripartite table. 

“The region that needed this the most was the Canary Islands and the agreement is something to be satisfied with because it responds to what we wanted. It gives key peace of mind for the coming months,” the president stressed.

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