Sumary of Spain close to reversal of post-crisis labor reforms:
- The new rules taking shape from months of negotiations with unions and employers would give more wage bargaining power to workers and revamp the temporary contracts that are widely used in the country’s services and construction-dominated economy.
- It favored employers in the collective bargaining process, allowing companies to pay below industry-standard wages – something the tourism sector has taken advantage of.
- Reforming the reform was a key condition of socialist Prime Minister Pedro Sanchez’s radical left junior coalition partner Unidas Podemos, which joined government last year.
- “The (new) reform aims to avoid company agreements having primacy in wages setting,” Joaquin Perez Rey, deputy labor minister, told Reuters.
- At present companies are able to set salaries lower than those agreed by collective bargaining at sector level where trade unions are strong, the method traditionally used in Spain.
- Article content But Sordo said that the reform will respect other aspects of company-centered collective bargaining and the possibility of opting-out in the event a business is in crisis will be kept.
- But she said employers accept a new formula for wage setting is needed to eradicate “unfair competition,” adding: “collective bargaining cannot be aimed at making wages more precarious.
- The purpose would be to pre-empt anticipated ecological or digital transitions within companies.