The Government presents a labor reform that the PP could have signed

We have reform. One day before Christmas Eve, the Government, employers and unions reached the first labor agreement democracy, an achievement that must be recognized by the Minister of Labor, Yolanda Diaz, which has been with this issue for many months.

Era one of the great promises of the coalition government: repeal the labor reform of the PP and present a new regulatory framework for relations between company and workers. Although, based on the results, it seems that the Executive has repealed the reform of the PP … to approve another qThat could well have also carried out the PP.

Are there substantial changes? Is it really going to be possible to put an end to temporality -one of the great objectives, if not the main one-, with these measures?

That everything changes … so that nothing changes

The temporality, the star aspect of the new reform. What the Government intends, and it is desirable, is that there is such a high temporality in Spain (26%, according to the latest EPA, one of the highest in Europe), something that makes our country always have the burden of some 3 million unemployed even though the economic cycle is favorable.

For this, this agreement has established two types of temporary contracts: structural and training. As its name indicates, the first type would be used for when the business or production circumstances that support it occur, such as Christmas campaigns, holidays, agricultural … maximum time of these will be 6 months extendable to 12 if the agreement allows it.

Those in training will be sOnly valid for people under 30 years old who have completed their studies within a maximum period of 3 years. The objective is to bet on the fixed-discontinuous contract, so that the relationship can be indefinite but with fluctuations.

But of course, if we take into account that the majority of productive sectors in Spain are subject to temporality and some very short campaigns – agriculture, commerce, tourism … – how is the Government going to get permanent contracts to be signed?

One of the things that we have already commented on here is that it would be very interesting to make permanent layoffs cheaper and for temporary layoffs to be the most expensive, in contrast to now, which would encourage more permanent hiring. But that has not finally been touched. That is, more of the same.

Another surprising aspect of this reform is that of the covenants governing companies. Until now, those of the company prevailed over the sectorial ones. Hereinafter…will be the same, will only be predominant in the sector to set the base salary and supplements. The rest will continue to be up to the company in terms of hours, overtime, vacations, etc.

A novelty Faced with the reform of the PP is that it is going to give priority to the figure of ERTE -from now on called the RED Flexibility and Stabilization of Employment mechanism – so that massive layoffs are not resorted to in unfavorable cycles for companies or for a sector. This has worked well during the pandemic and is something to maintain.

But What do the experts think of the agreement reached? Is it going to be really effective in improving our job market?

For Manuel Hidalgo, professor of Economics at the Pablo de Olavide University of Seville, the assessment would be “mixed: there are positive elements and others that they are worse than the ones we currently have“. Hidalgo points out that possible threats of a labor reform” totally reactionary compared to 2012 have dissipated, and some issues have been improved. “

The positive would be, for this expert, in the fight against temporality “with the simplification of the reasons for hiring temporary”. Also see positive the RED system, but “I am very concerned about the bureaucratic question of its definition, who decides? Besides, it would be necessary to see how fast it is … but in general it is good news”.

On the negative side it would be the return to ultra-activity, “which already proved in 2008 to be the biggest problem when making adjustments to the business crisis and resulted in an increase in unemployment.”

Therefore, we will have to see how everything ends, how it is detailed and, above all, how it is started, to be able to assess whether the labor reform is effective or just a facelift.


Source: El Blog Salmón by www.elblogsalmon.com.

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