ITP will lay off 133 workers from two of its centers in Bizkaia | Companies

ITP Aero continues with its adjustment plan that will affect 600 employees, 15% of a workforce of 4,000 workers spread over five countries, 3,000 of them located in Spain. It had already anticipated that it would cut jobs at its Castings subsidiary (formerly PCB) and with facilities in Barakaldo and Sestao, both in Bizkaia.

The group announced this Tuesday to the ELA and LAB unions that it will lay off 133 professionals, 26% of a group of 505 employees. Before this Employment Regulation File (ERE), ITP Aero had not renewed the contracts of 155 temporary contracts in Castings and had carried out three other dismissals, according to the union centrals.

Castings, focused on the special foundry for aeronautical components, operates at 50% of its capacity due to the collapse of the aeronautical market. With few passenger flights due to the pandemic, airlines have suspended their fleet renewal plans.

ITP Aero, 100% owned by Rolls-Royce, has already started up two separate EREs for its Zamudio (Bizkaia) and Ajalvir and Alcobendas plants, both in Madrid. A total of 206 layoffs. The Basque plant loses 121 jobs, Ajalvir another 72 and Alcobendas 13.

The Rolls-Royce subsidiary has also launched a Temporary Employment Regulation File (ERTE) that will run until the end of 2021.

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Indra looks at the traditional Defense business and charges the adjustment in the tech subsidiary

Back to the basics. Indra it has shown its cards in the global adjustment of the workforce that it is carrying out in Spain and which has put the trade union organizations on a war footing. The company owned by the State through SEPI has taken out the scissors in its two main divisions to reduce costs in the face of the economic crisis and the reduction of their income in individual collective redundancies. But he has done it in a very uneven way, loading the weight of adjustment on the tech division, under the Minsait brand, in a new attempt by the company to redirect it towards the Defense industry, its home business.

After withdrawing the Temporary Employment Regulation File (ERTE), in the last two weeks the top management of the company has put numbers to the adjustment. The most significant has been the technology division, which focuses on technology outsourcing services to large companies in sectors such as banking and consulting. The first proposal: 1,036 layoffs, which represents 8% of the total workforce. The intention of the company is to maintain that figure and it has not moved its position one iota. The unions described the proposal as “very tough.” “There is not a single ERE in which measures of these dimensions have been proposed,” they assured.

That percentage of affection is just double the amount that Abril-Martorell has assigned to the Transport, Defense and Air Traffic division (Indra Sistemas). Specifically, as communicated to the unions this Friday, there will be 240 employees (3.8% of the total), below what was considered among the workforce in the days prior to this first meeting. Of them, a hundred are concentrated in the management team.

Different justifications

In both cuts the company’s justifications have been more or less similar. At Minsait, the company was somewhat more explicit, insisting that the current economic crisis has shown a drop in results and a decrease in demand for products and services by its customers, especially in the banking segment, where the level of outsourcing is shrinking. To this, he added what they describe as “structural changes” throughout the group.

But yes there is differences between both divisions in terms of registered numbers in the business so far in 2020, especially affected by the global coronavirus pandemic. While in Information Technology Solutions revenues barely fell 1.6% in the first six months of the year with losses of 61 million euros, in the case of Systems, turnover has fallen by almost 9% until September, although the ‘red numbers’ before taxes amounted to 28.7 million.

More contracts in Defense

With all those wickers, the company has taught with this distribution of the impact between the two divisions a new attempt to turn towards the Defense industry, leaving in second place the civil businesses grouped in the subsidiary brand Minsait, according to some union sources. In this market, contracts are multi-year and provide greater stability to the group. That is one of the justifications for executing this return to the origins. And all this at the risk of missing part of the wave of digitization in the coming years and heavy investment in this segment, both in large companies and in SMEs. It must be borne in mind that the technology division is what has allowed Indra to diversify in recent years and also expand internationally.

This turn to Defense would also have a greater dependence on the public budget. It is a sector with a clear weight of government contracts, which has not stopped growing. As the unions explain, not only is there no need to lay off, but up to 400 employees would have to be hired to respond to the demand. “Current hiring is growing at double digits and we still hope to improve the initial budget, which is why it makes us understand that Indra Sistemas does not need an ERE“says CCOO, the majority union. One of the paradigmatic cases is that of the contract as” national coordinator “of the future European combat aircraft, the FCAS, which will replace the Eurofighter.

It is nothing new Indra’s attempt to strengthen itself in this market. A little less than a year ago, it reactivated the purchase of ITP Aero -valued at around 1,360 million euros in 2016- with which it wanted to become the Spanish defense giant. It did not bear fruit due to the demands of Rolls-Royce, owner of the company, which shot up the price claimed by the British group. However, it did give some clues about the interest of the team chaired by Abril-Martorell to concentrate all efforts on a market such as the military business.

Now, the company has several weeks to complete the negotiation of collective redundancies that have put the unions on a war footing. The agreement with them is key for Abril-Martorell, as it would pave the way with the Government to give a ‘green light’. For now, that pact is still quite far away, although there are more possibilities of achieving it precisely in Defense, in full return to its origins.

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New Adjustment in Fat Cattle Values, with an Eye on Climate

It closes a fourth consecutive week of low prices for fat cattle. Although the adjustment has moderated, the values ​​continue under pressure in a scenario of increasing supply and with some nervousness due to the delay of the rains.

The industries propose lower values ​​and, even, some plant is without spending a price. The offer increases gradually, although the concretion of businesses has slowed down.

The special fat steer is priced between US $ 3.20 and US $ 3.25 per kilo on fourth scale, with some exceptional business above these references. At the end of the week it was difficult to exceed these values. The entries to the plant remain long, between 10 and 20 days.

For the good fat cow, business deals between US $ 3 and US $ 3.05 per kilo, achieving something more in specific batches. The cow is more in demand than the calf. The heifer is priced between US $ 3.15 and US $ 3.25.

Operators consulted agree that a slight additional price adjustment could be registered in the coming days. The volume of work and the weather conditions will be key.

Anxiety rises due to the delay of the rains, which would be arriving next week. The regrowth of pastures has been slowed down by the low rainfall and temperatures that are only now on the rise. There is a yellow light for the end of spring and the run of summer with forecasts that reaffirm a La Niña episode and a probability of below-average rainfall.

With this climatic panorama and the adjustment that the fat cattle has registered, movements in the replacement market have been reduced.

In the international market, uncertainty is increasing about how the European demand for meat will evolve in the face of the resurgence of covid-19. The bloc countries are tightening measures to prevent the spread of the disease; in some regions restricting activity in restaurants and announcing the closure of bars. In China, for its part, there is a sustained demand, but with moderate values.

The meat packing industry remains cautious. Last week the slaughter of cattle crossed 40,000 heads for the first time since the beginning of June. It registered a weekly rise of 12% and totaled 40,313 head. The most notable rise was in the slaughter of cows (19%) that added 16,798 heads. In the case of steers, the rise was 6% with 17,703 heads.

Agreements are being closed for the arrival of kosher crews at the end of the month in some plants. At the beginning of November, meanwhile, a new slaughter of corral cattle begins, destined for Quota 481, which may take away purchasing pressure on pasture cattle.

On the other hand, firmness predominates in the sheep. Business is taking place smoothly and prices continue to rise moderately. Light lamb is priced at around US $ 3.48, heavy lamb at US $ 3.54, lambs at US $ 3.51, capons at US $ 3.13 and sheep at US $ 3.07.

The weekly slaughter of sheep totaled 30,157 animals, a weekly jump of 19%.

Slight rise in exported value

The export price of beef averaged US $ 3,820 per ton last week, slightly above the previous week, according to preliminary data released by the National Meat Institute.

So far in 2020, the value per ton exported stands at US $ 3,823, a rise of 1.4% compared to the US $ 3,771 registered in the same period of 2019.

In sheep meat, the price remained stable with an average of US $ 4,404. So far this year it stands at US $ 4,291, a 3.9% drop compared to the US $ 4,465 registered a year ago.

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