Monday, January 17

Labor market reform: Spanish government reaches agreement

The Spanish left-wing government announced Thursday the conclusion of an agreement on labor market reform with employers and workers’ unions, a few days before the deadline set by Brussels.

In a statement, the Ministry of Labor stressed that it was “a historic agreement in the field of social relations which allows the homologation of the Spanish labor market with the European market.”

The Minister of Labor, Communist Yolanda Diaz, added in the press: “This is a historic day for the workers of our country.” It was she who had made this reform a priority and had piloted the negotiations between the government, the unions and the employers.

On her Twitter account, the Minister was delighted with the work carried out by the government: “We are ending the year 2021 by respecting the government’s commitment: a new labor law which recovers the rights in favor of decent work.”

The agreement was concluded with the two main employers ‘organizations, the CEOE and the CEPYME (small and medium-sized enterprises), and with the two large trade unions, the Workers’ Commissions (CCOO) and the General Labor Union (UGT ).

A Reform to the complex elaboration

The objective of this reform is “to put an end to precariousness and generalized temporary work on the Spanish market”, explained Mrs. Diaz, who is also second vice-president of the government and for whom this agreement constitutes a political victory.

“It was more difficult to give birth to this reform than to give birth to my daughter Carmela, these 9 months have been very intense,” she joked in a reference to the fact that the negotiations had started in March.

In a series of tweets, the minister then referred to some of the points of the negotiated agreement, in particular the fact that “hiring under a permanent contract, which grants security and peace of mind to employment, will now be the rule and no longer the exception ”. She also promised “strong taxes and penalties” for violators.

The left-wing government of Pedro Sánchez and the social partners were engaged in a real race against time: the European Commission demanded this reform in exchange for the European mega-recovery plan, of which Spain is one of the main beneficiaries with 140 billion euros, and was waiting for the end of the year.

The bill resulting from the negotiations should be adopted on Tuesday, December 28, 2021 during the last Council of Ministers in 2021.

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