Cava producer Freixenet reaches deal with unions over drought measures

By Ana Cantero

MADRID (Reuters) - Spanish cava producer Freixenet said on Saturday it has reached a deal with unions over its proposal to introduce a "short-time work scheme" for nearly 80% of its workforce due to a drought.

The Catalonia-based company said 615 employees will have their working hours reduced between 20% and 50% from May 13 until the end of the year.

It said the decision was made following talks with unions representing the workers about how to face a drought in the region which is affecting grape growing and wine production.

"The intensity of the measure will vary depending on the period of the year and the evolution of the drought," the company said in a statement.

Vineyards across Catalonia's renowned Penedes cava-producing region are so parched that the roots of 30-year-old vines have died, leaving shriveled red and green grapes languishing under the intense sun.

Workers will be compensated with additional aid "to protect certain groups, extra pays and vacations," it added.

A similar plan announced in April by the company was rejected by the Catalan government.

Germany's family-owned Oetker Group acquired 50.7 percent of Freixenet in 2018 and signed a cooperation agreement with the remaining shareholders.

(Reporting by Ana Cantero)