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The Spanish Agency of Medicines Approves The Cultivation of 3 Hectares of Cannabis

12 August 2021
Now, Ondara Directorship will reincorporate their whole staff currently on ERTE
12 August 2021
2 min read
The Spanish Agency of Medicines Approves The Cultivation of 3 Hectares of Cannabis

Contents:
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  • 1. The reincorporation of an entire workforce
  • 2. What does this mean for the cannabis sector?

The world's point of view on cannabis is still in continuous change, and always, thankfully, in a positive way. Now, the good news is coming all the way from Soria, a city located in the north-central area of Spain. 

What's the news? Well, the Spanish Agency of Medicines (Agencia Española de Medicamentos) has given green light to the Sorian firm Ondara Directorship in their plan to produce cannabis plants at an industrial level.

Firstly, Ondara has received permission to grow 3 test lots, which if grown correctly will then grant them a free pass to initiate the operation of 3 hectares of marijuana cultivation in their facilities located in the municipality of Garray, in the exact same place where Aleia Roses, a flower company was situated before. 

Not only this is good news for the cannabis sector, meaning a huge boost in the industry in Spain, and therefore the Spanish economy, but it also signifies a big impulse from the occupational point of view.

The Reincorporation of an Entire Workforce

See, the entire workforce of Ondara is currently under ERTE, (Expediente de Regulación Temporal de Empleo - File of Temporary Employment Regulation). ERTE is a layoff mechanism applied in Spain when an employee or group of employees are temporarily suspended or permanently laid off from a company.

When an employee or a group of employees is under ERTE, they are entitled to a benefit equivalent to 70% of the regulatory base of their salary during the first six months of the ERTE, and 50% from the seventh month. The Spanish Social Security (Seguridad Social) is the organization in charge of emitting these payments until the worker's employment status changes.

So, now that Ondara has received the approval to kickstart this huge cannabis operation, the company has gladly informed that it will perform the gradual reincorporation of its staff team that was under ERTE, allowing them to jump straight back into work and get the gears rolling. 

What Does This Mean For The Cannabis Sector?

All we've got to think about now is, if the Spanish Agency of Medicines is allowing such a big production of cannabis, then what could this mean? Possibly and most likely the approval of the commercialization of the products resulted from these plants, but we'll have to cross our fingers, and wait and see for now.