The judges confirmed that the social plan presented by Talleres López Gallego in February 2012 was not valid. In doing so, they are proving unions rights and confirming previous court rulings, thus permanently dismissing the company’s appeal. The Court considers that the company didn’t provide enough information to justify laying off the 28 employees covered by the social plan. This ruling is particularly important because it is the first on a mass layoff implemented after the 2012 labor market reform. With this decision, the judges remind businesses that, while the reform has made the procedure simpler, it isn’t simply a formal approach and they need to explain themselves and consult workers. (Ref. 130277)
On February 21, 2012, Talleres López Gallego, the mechanical repairs company set up in Mostoles (south Madrid suburbs) presented a social plan (ERE) cutting 28 jobs out of 30. This was 11 days after the Council of Ministers ratified the new Labor Act on February 10 (see article No. 120100) and the Official Journal published the text. The company’s management had justified the ERE with economic grounds, reporting, as allowed with the new law, lower sales for three quarters in a row.
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