Daily news from the Canaries and the islands' biggest English language newspaper on-line
    
Daily news from the Canaries and the islands
   Daily news from the Canaries and the islands' biggest English language newspaper on-line

Working conditions
Labour reform
There are still strike calls over the recently approved labour reform act in Spain whilst nobody seems to be exactly sure what will change or for whom.


Labour reform

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Tierschutzverein APRAM
Tenerife
Animal Shelter
07.07.2010 - Unclear, unambitious, ambiguous and cowardly are some of the milder epithets levelled by labour law specialists, the unions think it should be scrapped and business chiefs don’t believe it has gone far enough.  However if the new law fails to suit anybody or even everybody, the unions and businesses only have themselves to blame after failing to reach an accord after almost three years of discussions before the government decided to step in.
New indefinite contract holders will only have 33 days per year worked recompense (maximum two years salary) if they are made redundant which has the unions up in arms as they believe that the marketplace will gradually replace the current 45 day compensation (maximum three and a half years salary) as existing contract holders retire.  In addition there is a considerable group of people with existing contracts and new contracts for males between 31 and 44 years of age who will now be entitled to considerably less compensation (not defined).
A vaguely worded ruling that the 45 (or 33) days could be reduced to 20 if a company is in financial difficulty has no support from either side and the Spanish President, José Luis Rodríguez Zapatero, has confirmed that the whole law needs to be made more concrete, a process that would be expected to take place during its passage through the second House.  However the Minister for Employment, Celestino Corbacho has affirmed that companies who want to cut their workforce and pay only 20 days compensation won’t find it that easy.
A new government fund is to be set up, sort of a giant piggy bank, which will pay the first eight days of the compensation from funds to be supplied jointly by the government and the employers.  CEOE president, Gerardo Díaz Ferrán affirms that this measure will in fact make the cost of redundancy more expensive rather than less as they will be paying the lion’s part of the redundancy payment for their own lost workers, plus contributing to the general funds for all the rest.
Union representatives claim that the reform will poison labour relations and increase conflict in the workplace as well as endangering the collective bargaining system and insisted that the new law was simply aimed at making it cheaper to fire people, “however you want to describe it”.

 



 
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