Employers and unions have until Wednesday to consider the draft that the government has given approval for labor reform decree. The aim is to address an unemployment rate of around 20% and double the European average. Unemployment, which afflicts 4.6 million people, remains the vigilance of the English Main. The unemployment rate in the euro area recorded a slight increase in April to 10.1%, one point above the previous month, while a year ago stood at 9.7%, according to data published by Eurostat, which once again put Spain as the country's highest unemployment in the euro, reaching a rate of 19.7% in April compared to 4.9% in Austria in which the current model is inspired reform.
The reform aims to address a market that has failed. Among other changes, is expected to create a capital fund similar to the Austrian, which would be paid to the employee at the time of dismissal and the possibility of the company without employees by demonstrating loss for 6 months.
The Government is committed to approve the labor reform on 16 and then be honored next week because in principle the board of spokesmen predicted such validation on the afternoon of Tuesday 22.
The proposed reform has ingredients of so-called Austrian and German models posed in a first case of a fund for severance pay and the second to encourage businesses to reduce the hours employees work, but not the number of contracted .
The reform stipulates that working hours be reduced for economic, technical, organizational or production between 10 and 70 percent. In a labor market such as English, marked by the duality between permanent and temporary workers, the labor reform that wants to fix the government will seek to give more prominence to the Guarantee Fund Wage, which would pay up to 8 days per year worked in compensation and the creation of a new capital fund.
Since 2012, the Executive plans to create this new mechanism, the funding model does not specify in the text, which may be used in case of dismissal or otherwise, be recovered by the employee at the time of retirement.
For its part, claims that the company would pay in case of redundancy is reduced by a number of days' wages per year of service equivalent to that determined for the establishment of the Fund. The promotion of employment contract provides for compensation 33 days per year worked and is intended for those with difficult to get work, but the new draft as amended to include in this group, among others, workers who take more than three months of unemployment.
According to the EPA, in the first quarter to 75 percent of the 4.6 million unemployed had spent more than three months looking for work.
The document, which has already been submitted to the unions, including a model of redundancy, which allow companies to pay compensation to 20 days per year worked, provided they show short-term losses.
With an eye toward reducing the number of contracts temporary and permanent hiring increase, the new rules penalize companies that lay off temporary workers is increasing to a maximum of 12 days from 2014.
major unions have valued very negatively to the draft, they considered the dictation of the employer, and do not rule out a general strike to be held on September 29 this year.
The need for urgent action to address the crisis also comes to France to announce this week cut its deficit to one hundred billion euros for 2013 and taken to the European Union's target of 3 percent of gross domestic product that same year. France joins Spain, Germany, Britain and Portugal in the announcement of major cuts to painful measures to reduce the budget deficit caused in recent years by living beyond the means, both public and private. Germany has advanced to reduce by 15,000 the body of government officials in four years, equivalent to 2.1% of all public employees of the central government of Germany, and will look for ways to cut troops by 40,000 soldiers Army. These are times of change, adjustments and reforms to address the urgent need to create jobs in Spain and clean up the public accounts that allow a strong and sustainable recovery the English and European economy.
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