BSH Electrodomésticos has announced plans to close its Esquíroz plant, which employs approximately 655 people, due to declining competitiveness. The news, which took many employees by surprise, was communicated during meetings with trade union representatives on December 16, 2023.
The Esquíroz facility, known for manufacturing refrigerators and compact dishwashers, has been battling severe production cuts, leading to fears about job security among its workforce. According to BSH management, the decision to cease operations follows exhaustive analysis and is deemed necessary as the market conditions remain relentlessly difficult.
"Lamentablemente, en los últimos años estamos viviendo una evolución persistentemente difícil de nuestros mercados, unido a una fuerte competencia...", stated representatives from BSH management, indicating the complex factors influencing their decision.
Workers had long expressed skepticism about job security, frequently gathering to voice their concerns over impending reductions. A worker, visibly shaken by the announcement, remarked to Navarra Capital, "Estamos destrozados. Llevábamos mucho tiempo en una situación muy difícil, pero no nos esperábamos algo tan drástico." (We are shattered. We've been in a tough situation for quite some time, but we didn't expect something this drastic.)
After the announcement, union representatives swiftly organized meetings to discuss next steps and support for the affected workers. The overarching sentiment among workers reflects our collective trauma and uncertainty about the future, as the closure could potentially affect over 1,000 additional jobs linked to the plant.
The closure is not entirely unforeseen, as union representatives had previously highlighted the factory's declining productivity, which plummeted by more than 50 percent since 2015. This drop was attributed to the relocation of manufacturing activities to more cost-effective regions, primarily Poland and Turkey. "La dirección no ha cumplido con la responsabilidad de traer volumen productivo para garantizar la ocupación y el futuro de la empresa," union leaders criticized, emphasizing management's failure to address the factory's low productivity.
External pressures have exacerbated employment instability within the region, where previous plant closures had left lasting scars on local employment dynamics. The recent plant closure joins the ranks of other significant BSH closures across Spain, raising alarms within the academic and business communities about the viability of remaining production facilities.
Economic observers, including UPN spokesperson Javier Esparza, voiced concerns over the broader economic impact of BSH’s decision. "No hay una buena noticia últimamente en esta Comunidad desde el punto de vista del empleo..." (There haven’t been good news lately from an employment perspective...) he commented, urging the government to rethink its economic policies to maintain jobs and stimulate local industry.
The next steps include legal consultations scheduled to begin later, wherein BSH aims to keep communications open with labor representatives. Though operations will continue for now, it’s anticipated the plant may shutter completely by mid-June 2024.
Employees won't return to their posts until early January following previously scheduled time off and operational reductions, complicatively establishing uncertainty for workers as they navigate the coming months.
Meanwhile, dialogues between the company and employee representatives are expected to continue intensively as they work toward negotiating definitive employment outcomes. The road forward remains fraught with challenges as workers prepare for the possibility of unemployment.
The Esquíroz facility’s situation reflects wider trends of manufacturing decline within Spain, engaging unions to amplify their collective voice for urgent governmental intervention. Such dynamics stress the pressing need for regional policies to safeguard manufacturing jobs, retaining both stability and future opportunities for workers across the area.
