Spanish fashion giant Inditex Group, which owns the Zara fashion chain, will pay Spanish workers in full until April 15.
Angeles Rodriguez, coordinator of the Industrial Commission for Inditex Group and other Spanish retailers, said: “Inditex Group is one of the largest fashion retailers in the world and the only one. There are no companies that have laid off employees.” He continued to participate in meetings related to different companies’ response to the new coronavirus. “In Spain, other companies, including Ele Corte Ingles, have proposed temporary employment law measures (ERTE)” to adopt large-scale layoffs or force employees to take leave.
Rodriguez added that Inditex Group will pay Spanish workers full wages until April 15 and reassess wages. “Inditex Group has also committed to paying the salaries of all employees in Europe until April 15, and may make the same commitment to employees around the world.”
Inditex Group said earlier this month, As many as 3,785 stores in 39 countries have been temporarily closed due to the new coronavirus pandemic, resulting in a loss of 287 million euros (about 316 million U.S. dollars) in inventory.
1. More than a dozen factories of Inditex Group have been affected by the epidemic.
Rodriguez mentioned that according to Spanish reports (reported on March 31), the total number of confirmed cases of the new coronavirus in Spain was 85,195, and the death toll climbed to 7,340 people, making the country the third most affected country in the world. However, a report by the British Broadcasting Corporation (BBC) on March 30 pointed out that British government officials said that the spread of the new coronavirus seemed to be slowing down.
Inditex Group owns Zara, Pull&Bear, Bershka and other fashion chain stores. It has 13 clothing factories in Spain and employs approximately 23,000 employees, including logistics and factory employees. Global Data analytics company estimates that about 57% of all Inditex Group’s factories are located near its headquarters.
Spanish newspaper El Confidencial reported that even three days after the end of the blockade in Spain (the Spanish government set the blockade date to April 12 on the day of the report), that is, in April After the 15th, all workers will also receive a certain amount of remuneration, and Spanish retail workers will be on compulsory leave.
2. Inditex Group factories have switched to manufacturing medical-related protective clothing and masks.
During this period, Inditex Group founder Amancio Ortega was also praised on social media for donating approximately 800,000 medical masks and 75,000 pieces Protective clothing, and joined other Spanish multinational companies in advocating to help solve the shortage of personal protective equipment (PPE).
The union director said that the Inditex Group actively helped the government respond to the crisis and quickly converted Arteixo’s production center in the LaCoruna Autonomous Region to produce masks, medical-related protective clothing and protective gloves.
Cristina Estevez, Rodriguez’s rival in other leading labor unions (UGT), said the demand for medical supplies in Spain is huge. She added that approximately 2 million medical workers need protective equipment.
“We are working with industry, trade and tourism to see if there are other companies that can provide raw materials to make medical clothing and equipment,” she said. “Solidarity The trend is so great that even laid-off workers are looking for ways to make masks, or setting up medical groups to make medical-related protective clothing.”
3. Severity The future development
Estevez mentioned that the Spanish government has proposed to pay 70% of wages to laid-off workers, and employers have agreed to provide the other 30% of wages. The situation is expected to last around six months, but most retailers say they will not be able to continue funding beyond the end of March, two weeks after Spain went into lockdown on March 14.
Estevez also mentioned that as Spain suffers heavy losses from the impact of the new coronavirus and the economy falls into recession, about 230,000 workers may be left without any financial assistance. .
Estevez mentioned: “If many small and medium-sized businessmen do not receive 30% financial assistance, they will face huge difficulties.”
Inditex Group’s position on overseas supplier workers is unclear. It is only known that H&M Group is believed to be the first and only retailer to agree to pay its suppliers despite canceling orders after the products are manufactured. .
Faced with the impact of the new coronavirus, more and more fashion circles are calling for the fashion industry to reconsider how to arrange company business content. Supplier factory profits are usually very small. And compared with customers, there are even fewer opportunities to obtain funds. As a result of the impact of the epidemic, suppliers have suffered a huge impact.
