Monday, November 29

Sánchez must extend the period for calculating pensions in 2022

The reception of European funds has conditionality andl Government must comply with the guidelines that arrive from Brussels to receive them. A friendly first part of the pension reform is already in Parliament, the one that links the increases with the IPC and it rewards the voluntary delay of withdrawal, and now the Government must launch a second part, the toughest, which must adjust spending and return the system to a surplus. And in this second part, Brussels It obliges Spain to extend the period for calculating pensions in 2022 so that it can be started gradually from 2023.

implement recovery plan Spain and already caused a great commotion within the Executive at the end of last year when a proposal to raise that period for calculating new payrolls from 25 to 35 years came to light. The debate was sour and consequently the Minister of Social Security, José Luis Escrivá, he denied it.

Increasing the years used to calculate the pension is one of the most effective measures to cut the initial pension of new retirees and reduce the replacement rate (first pension versus last salary) in the Spanish pension system, which is now is above 80%, according to the OECD. In practice, this measure implies receiving lower incomes because workers, as a general rule, have worse wages in their first years of working life and better in the later ones. As reported by ABC, next year the years taken into account to calculate the pension will change and will be set at 25 years. Since 2013, a transitional period was opened until January 1, 2022, in which the required contribution period has progressively passed from 15 to 25 years.

In addition to this cutback measure, the agreement with Brussels In order to receive the funds, it includes an increase in the maximum contribution bases and, “progressively”, in the maximum pensions so that the system does not lose contributivity. In other words, employment taxes will increase for the highest salaries, of more than 49,000 euros, but also the pension they receive.

The pulse is still alive

Commitments to Brussels was made public the same day that Nadia Calvin crashed with his new proposal on the FOR HIM permanent after being rejected by employers and unions. The so-called plan RED activates an instrument to which companies will resort when they suffer from problems derived from an adverse situation or for structural reasons. And three modalities are established, linked to the training and relocation of workers in other companies. He has not convinced anyone. And in addition to technical issues, the proposal also contains an important political reading, as it gave more power to Nadia Calvin what to Yolanda Diaz, which reflects how the pulse between the two is still alive.

In the business environment the text of the Minister of Economy was described as “cumbersome” and it is said that it is full of “ideology” and “interventionism”. The discomfort is such that the president of the CEOE, Antonio Garamendi, did not hesitate to unlink businessmen from the arrival of European funds: “We prefer that the funds do not arrive and that the rules are better,” he said in an interview with Onda Cero.

According to the draft negotiated by the social agents, the Government is committed to maintaining the FOR HIM by force majeure in terms similar to those that have been applied during the pandemic. But it also includes two other new types under the one baptized as the RED Mechanism for Flexibility and Stabilization of Employment, such as structural and cyclical ones. For the three cases, it is established that the reduction of the working day will oscillate between 10% and 75% of the total.

The scheme designed for structural causes would be activated to deal with changes related to the introduction of new production methods and that generate situations in which keeping the workforce leads the company to a loss of competitiveness. These situations should be addressed with “requalification of the affected workers to guarantee their employment in the company itself or in professional transition processes of these to jobs in other companies or sectors,” reads the document.

In the latter case, the originating company would transfer to the Fogasa 50% of the amount of the unfair dismissal that would have corresponded to the worker in the absence of relocation to constitute a fund to finance these relocation processes. This point has not been liked by the union ranks as it is considered a loss of workers’ rights.

As for the FOR HIM To deal with cyclical crises, such as the one experienced with the pandemic, it will only be activated when economic causes arise from a “general situation”. Here power would pass into the hands of the Economy, who will have to set what objective parameters justify its use. In addition, you must receive a prior activation by the Minister council. According to his proposal, the maximum duration would be one year, with exemptions in contributions and benefits for workers equivalent to 70% of the regulatory base.

Despite the superiority of Calvin In this scheme, which could at first suggest that the proposal is more akin to the business world, the rejection in CEOE is resounding. One of the main sources of controversy has been the mode of financing. The proposal involves creating a fund that would be nurtured in three ways: on the one hand it would be endowed with excess income from unemployment contributions, on the other with contributions established in the Budgets and finally with funds from the EU. It also maintains one of the clauses that have generated the most controversy during the pandemic since the benefits in terms of contribution linked to this RED Mechanism would be conditional on maintaining the employment of those affected during the six months following the end of the FOR HIM.

CC.OO. He showed his surprise at a new proposal after eight months of negotiation, “which takes us away from a possible agreement,” the union said. UGT, for its part, warned that the employment guarantee offered to affected workers may be “the prelude to dismissal.” He denounced that the plan is a way of introducing the ‘Austrian backpack’.

Another measure put on the table concerns temporality. The government He already advanced that he wanted to reduce the high turnover of temporary workers and end the practice of firing on weekends or vacations to re-register them upon return in order to save the payment of contributions. Now he proposes a scheme that punishes the employer who terminates a worker with more contributions. «In temporary contracts, the business quota for common contingencies will increase, in the month in which the worker leaves the company and for each one of said leave, by three times the daily amount determined by applying the rate of contribution charged from the company to the minimum contribution limit for occupational accident contingencies “, says the Executive. Currently, the law sets a 40% increase in the fee for common contingencies in temporary contracts whose effective duration is equal to or less than five days.

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