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2 October, 2006
ICEM Spanish affiliate FIA-UGT has expressed grave concerns that the bidding war that escalated last week for national utility Endesa will endanger both jobs and the quality of energy services in Spain. That sentiment was backed by national labour federation, UGT.
FIA-UGT criticised the recent buy-up frenzy of Endesa shares, saying it will lead to a splintered energy sector in which the highest bidder may win control, but with dire consequences as a result. The union said the absence of a national model for Spain’s electric system will create a fractured energy sector, in which both workers and consumers will suffer.
FIA-UGT called on Spain’s Ministry of Industry, Tourism, and Commerce to establish an immediate roundtable at which all stakeholders, together with the government, analyse, define, and agree on a model of consolidation for the energy sector that reflects the interests of Spain. FIA-UGT said the recent unsettling events concerning Endesa are the result of “an absence of regulation, and an absence of a political and social consensus that has turned a strategic sector into a speculative one.”
The labour federation UGT has urged the Spanish government to take a stronger stand to protect Endesa. UGT General Secretary Cándido Méndez predicts that the takeover of Endesa will result in higher fees for consumers, a lowering of investment, and job redundancies.
The 13-month-long contest for control of the electricity company entered a new phase on 25 September when Spanish construction group Acciona significantly increased its stake in Endesa by topping German utility E.ON’s €27.50-a-share bid, an offer dating back to February 2006. Acciona bought another 10% stake in Endesa at prices up to €32-a-share, lifting its share of Endesa to near 25%. That was countered by E.ON on 27 September, which bid €35-a-share. Barcelona-based Gas Natural, the original hostile bidder for Endesa over a year ago, is also still contemplating a takeover of Spain’s largest electric-generating company.
European energy unions from Germany, Italy, and Spain, together the European Mine, Chemical and Energy Workers’ Federation (EMCEF), met and formulated a position on any Endesa takeover late last winter. That position called for Endesa to remain as it is, without splitting of any business units. The position opposes contracting out of any parts of the company. The coalition also called for maintaining and enhancing internal investment, continuation of Endesa’s collective labour agreements, no redundancies or layoffs, and engagement in social dialogue with trade unions on all matters of industrial policy. For further information on EMCEF’s position, click here.