Workers at the Quesería Menorquina factory in Maó were informed by the management that they were to be given two days off work this week due to a lack of raw material for the production line.
The plant had been at a virtual standstill for several days during which employees filled their working days carrying out maintenance work and other tasks such as cleaning.
It is reported that workers at other companies in the Nueva Rumasa group have also been given time off work.
The decision comes only a few days after Quesería Menorquina paid the staff 40% of their pay for January. With February's wages and the balance of January's still due, the company currently owes its workers around 540,000 euros in outstanding wages.
Kraft awaiting payment
In addition to this, Nueva Rumasa still owes Kraft Foods around 1.4 million euros for the purchase of the Maó factory in June 2009. The multinational recently announced that it was being seriously harmed by Quesería Menorquina's failures in production and payment and stated that it would take the necessary measures to palliate the effects and demand action from those responsible. The Maó factory is under contract to supply Kraft 2,700 tons of soft cheese per year until June 2012 but has failed to fulfil its obligations in the last six weeks.
The North American company had given Nueva Rumasa 30 days in which to bring payments up to date and to start supplying again, a period which expired on Saturday.
Hotels for sale
Nueva Rumasa has put fifteen of its hotels on the market to be sold en bloc, individually or in groups. These hotels, which include the 148 apartment complex Hotasa Sea Club in Cala en Forcat, are part of the Hotasa group which currently has debts of over 200 million euros. In addition to the Menorcan complex there are seven others in the Balearic Islands, six in the Canaries and two in Andalucía and between them they employ 1,100 workers. Their sale would leave Nueva Rumasa with just one tourist complex in the Dominican Republic.
The Radó family has lodged a demand for payment against Nueva Rumasa for non-payment of part of the purchase price of two of the hotels (one in Gran Canaria and the other in Mallorca) which the company bought for 69 million euros in 2008.