Dr. Ferran Camas Roda

Professor of Labour and Social Security Law and Director of the Chair of Immigration, Rights and

Citizenship at the University of Girona (Catalonia, Spain)

E-mail: fernando.camas@udg.eduWeb: www.ferrancamas.com

Tweteen: @FerranCamasRoda

The Influence of European on Spanish social law: The labour

market reforms in Spain

Les conséquences sur le droit social espagnol des pressions de l’UE: La

Réforme du Travail en EspagneUniversiteit Antwerpen. Faculteit Rechten.

25/10/2013

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What is Spain’s main problem?

1º UNEMPLOYMENT

2º CORRUPTION AND FRAUD

3º ECONOMIC PROBLEMS

4º POLITICIANS

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POINTS OF INTEREST CONCERNING THE SPANISH LABOUR MARKET

1. Focused on the building industry (“housing bubble burst” in 2009); services and tourism.

2. Characterized by small companies (8 out of every 10 have two, one or no employees).

3. In July 2013, the unemployment rate was 26,4%.

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Unemployment and voulnerable groups:

• The Unemployment rate is high amont the young people, 51 % of whom are unemployed

BUT MORE ALARMING IN:

• ADULTS OVER 45 and OLDER POPULATION (+55)

• IMMIGRANTS

• “Brain drain”.

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4. National Minimum Wage: 645,30 e. (month) / 21,51 e. (day)

The average salary: 19.900 e. (year)The most common salary is 15.500 e. (year)

5.Market duality between workers wiht permanent contracts and temporary workers.

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6. State regulation trhough labour laws has exerced a strong influence in shaping labour relations; collective bargaining has influenced in salaries and daily working hours (nowdays, this change with reforms).

7. The role of the judicial authority in conflict management has increased at the expense of Public Labour Authorities.

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EXPLANATION OF THE LABOUR MARKET REFORMS

•The Conservative Government promoted a series of legislatives amendments by taking “urgent” measures (undermining the idea of democray and functioning of the Parliament)

•Criticism (Manifesto in favour of Decent work and Total collective freedom): the Goverment grants exorbitant powers to employers and don’t contemplates collective bargaining as a tool for correcting unfair labour relationship.

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POLITICAL FRAMEWORK OF REFORM

•To blame labour laws for the poor functioning of the labour market

•The idea of a large number of public service workers and that their working condicions were

privileged.

•Political opinion created the idea that “Spanish had lived beyond their means”

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THE MAIN LINES OF THE REFORM

1. The Law includes measures intended to favour the “worker’s employability”:

• 1.1 Widened the scope of Temporary Employment Firms.

• 1.2 Promoted temporary contracts for training for workers (16-30): They earn less thant National Minimum Wage.

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2. Promotes permanent contracts and favour creation of employment:

• 2.1 New permanent contract for SMEs with a one-year probationary period.

• 2.2 Promotes Part-time contracts with possibility to do overtime.

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3. Favour internal flexibility as an alternative to job destruction

(Wide ranging powers to the employer: the employer as “The Lord of the manor).

3.1 Make easier to change worker’s fonctions.

3.2 Allow the employer distribute 10% of the annual working day irregularly.

3.3 Greater powers to employer to make substantial changes of working conditions

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In fact, Not in SMEs, but in COMPANIES WITH OVER 50 or 250 WORKERS

Working conditions that the employer

should change may be related with:

• SALARY• WORKING DAY or

DAILY WORKING HOURS.

AS A RESULT:

• REDUCTIONS IN PAYS OR PAY FREEZE IN

COLLECTIVE BARGAINING

• MORE DAILY WORKING HOURS (WITHOUT COMPENSATION)

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Another consequence of importance of powers granted to company manegement: situations in which the employer unlawfully

asks the salaried worker to become self-employed if he/she whises to

continue working for the company.

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3.4 The reform gives priority to firm level collective agreements.

3.5 Possibility of “opting out” from a wide number of obligations from collective bargaining of productive sectors.

3.6 The reform terminate with so called “ultra-activity” of collective agreements.

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4. The Government “favour the effectiveness of the labour market and reduce duality”

4.1 In collective dismissals, eliminating the autorisation of the Public Labour Administration

4.2 It’s easier for the employer to sack workers either by protecting reasons for dismissal by law, or by reducing the amonut paid in compensation.

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In fact, companies have taken advantage of this opportunity to

reduce staff members, in preference to the option of

making working conditions more flexible

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THE CONTINUATION OF LABOUR REFORMS-SHORT TERM PLANS• The pension system.

• The active labour market policies: the support of greater presence of private placement agencies.

•Providing the working population with the level competence needed (the needs of the labour market).

•Reduce number of people at risk of poverty.

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CONCLUSION ON WHAT THE LABOUR REFORMS HAVE MEANT:

1. A power imbalance in favour of the employer.

2. An increase in situations of irregular or atypical employment, which is also

related to the informal economy

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3. Loos of Union bargaining power in relation to working conditions.

4. Loos of power of the Public Administration to mediate in resolving labour conflicts, and increase in the importance of the Labour Courts.

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5. The labour reforms have been a disaster in targeting job creation.

6. Loos of an important number of Public Administration workers.

7. To sum up, the labour market reforms are not resolving the unemployment situation: poverty and social inequality are increasing

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The Popular Party’s form of government and way of legislating is taking its toll on Spanish democracy.

The establishment of the State of Spain as a Welfare State has been

called into question.

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Thank you very much

Dr. Ferran Camas RodaE-mail: fernando.camas@udg.edu

Web: www.ferrancamas.comTwitter: @FerranCamasRoda

Antwerpen, 25/10/2013