Unions claim Majórica purchase was “illegal“

The Workers Commissions (CC.OO) have called on the ministry of finance to investigate the purchase of the Majórica pearl factory in Manacor by the current owners, alleging that the operation was “illegal.” The union is fighting management plans to cut 188 jobs, 40 per cent of the work force, to save the troubled company, claiming that the company is viable. It blames the crisis on the shareholders, and says that it is they who should put up the money to save it. The union claims that the new owners devised an 11'000 million pesetas purchase operation but only put up 1'000 million pesetas. Balearic labour minister Eberhard Grosske said yesterday that the government will support the continuance of Majórica with two conditions: job guarantees and a change in management policies. He slammed management policies and criticised their attitude. The Council of Majorca said it was prepared to help Majórica provided the viability plan did not include job cuts. The aid would probably take the form of reclassifying land, as it did for rival company Perlas Orquídea. The Balearic government has ruled out bailing out the company with 1'000 million pesetas.