Here is a translation and reprint of a local news story outlining the current Gas Gas situation. As the company looks to restructure the debt, it is also looking to for concessions from the union regarding workforce. They want to reduce the number of employees, institute some form of forced temporary layoffs and cut wages.
There continue to be rumors that much of the current debt load has been either eliminated or restructured. Although nothing has been confirmed yet. According to this story, it appears that perhaps a further capital investment from the ownership will be required for such to happen.
Please forgive the rough translation, as the original is in Catalan, the outcome is a bit rough.
Gas Gas wants to cut 1/3 of work force and institute 90 day layoffs
The Girona motorcycle manufacturer is involved in a pre-bankruptcy
26 layoffs, temporary suspension of work for the rest of the staff reduction and staggered wage. The direction of Gas Gas has delivered the council document the work that you carry out measures to overcome preconcurs creditors(pre-bankruptcy). Girona motorcycle manufacturer has until mid-April deadline to try to meet an agreement with creditors to restructure debt and that up to 20 million euros (MEUR).
In parallel to the negotiations with the banks, Girona manufacturer has submitted a feasibility plan for getting out. Within this document, included three cases of employment regulation (ERE). The management has already announced the council and before formally entered the Department, both sides now open within negotiations start Thursday.
Firstly, Gas Gas wants to forward an ERE extinction that affect almost a third of the current workforce. “According to the report contained in the report, the company raised dismissed 26 workers who have 93,” said committee chairman, Peter Brangolí.
The second -this ERO, temporarily affect the entire staff not to go on the street (ie 67 employees). The intention of the manufacturer of motorcycles is to send them to the unemployment up to 190 days for a period of two years, depending on production needs there.
Finally, the third case suggests a reduction in wages, according to precise Brangolí, will be “gradual” and not homogeneous; ie, it does not apply to everyone equally. “Within the company there is a big difference between wage and other categories, and the percentage of salary reduction will be based on that,” he specified the committee chairman.
After Gas Gas has submitted the document to the committee of intent, the two parties began negotiating Thursday. Workers’ representatives who have already communicated, meanwhile, sent to the negotiating table (which will also be staff UGT). Before the files are not executed, and management committee have fifteen days to try to reach an agreement with the ERO temporary salary reduction. A term which reaches more in the case of the ERE of extinction.
The manufacturer maintains save Girona motorcycle production since mid-January, when presented preconcurs creditors of the Commercial Court of Girona. Since then, there has been a change in the general direction (which has now become dependent on an Israeli investment group).
Template Gas Gas ensures, through the committee, the company is “viable” and that the current situation is the result of “bad management” has been done. “The workers want to work and make bikes, but for lack of agreement between banks, investors and government, we can not” specified employees.
The Catalan company, headquartered in Salt (Girona) contracted much debt that drags between 2004-2005. The amount due to banks refers to both facilities (factory) and production (ie, models trial bikes and mountain).
Gas Gas, 1 trial bikes and enduro third, made in 2014 about 8,000 units. 90% of its production is exported to more than fifty countries around the globe (among others, France, Germany, Brazil and the United States).