Damm will not lay off any Agama workers, despite closing the factory

The workers, however, claim that the group "was more interested in them leaving than in relocating them."

The Agama factory in Palma, in an archive image
23/03/2026
2 min

PalmThe Damm group has reached an agreement with the workers of Agama after weeks of negotiations. Although the closure of the factory in PalmaDamm will not lay off any of the 14 Agama workers, but will instead relocate them to various companies within the group. Furthermore, according to Jesús Ávila, spokesperson for the Agama workers, their salaries and other employment benefits, such as seniority, will be maintained. Company sources told ARA Baleares that a social support plan has been designed that includes the possibility of relocating 100% of the workforce to other companies linked to the group, most of them in Mallorca. Damm also stated that they committed to offering "an individualized solution to all those affected." For workers who do not accept the relocation plan and decide to leave the company voluntarily, the agreement reached with Damm includes improved severance packages. However, the workers have a different version of the information provided by Damm regarding the workforce reduction plan. Ávila explains that of the 16 positions offered to the 14 workers, only 11 are in Mallorca, "which forces three of the workers to either leave the island or renounce the agreement." He also detailed that the working hours, work conditions, and location are not what they expected. "Damm was more interested in us leaving than in relocating us; this is clear from what they offered us to stay and what they'll pay us if we leave," denounced the Agama workers' spokesperson. Currently, five of the workers have already informed the company that they intend to be relocated to one of the positions Damm has offered them in Mallorca, while the other nine intend to leave the company voluntarily with the agreed-upon severance package. Thus, Damm takes another step toward finalizing the closure of the Agama factory in Palma. However, it should be remembered that the Balearic Islands Government is still preparing the file to claim the subsidy from Damm.1.1 million euros which it received in 2024 to expand the range of manufactured products and expand business areas.

In this case, everything points to the brewery having to return the amount of the grantSince the conditions established in the terms and conditions have not been met—which require maintaining operations for five years after receiving the public aid—Damm has already expressed its willingness to comply with the government's requirements and return the requested amount. Once this part of the process is finalized, the closure of the Agama brewery in Palma will be official.

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