Thursday, July 7

The CEOE threatens to block the negotiation for the labor reform

Yolanda Díaz and Antonio Garamendi.

Yolanda Díaz and Antonio Garamendi.

The CEOE has staged this Thursday the frontal rejection generated by the labour reform raised by the third vice president and Minister of Labor, Yolanda Díaz. If a week ago you called it “Marxist“In derogatory terms, as soon as the meeting ended on Thursday, the employers’ association has issued a public statement in which it has threatened to block the negotiating tables if the latest draft is not put aside and the talks are started again from scratch. Sources of the Ministry of Labor have replied that they will move tab for next week and will introduce modifications in their text to keep the bosses sitting at the table, but they also insist that the reform will continue.

“Business organizations have transferred the need, in order to continue negotiating, to have a new approach from the Government,” said the CEOE in its public statement. It is not the first time that businessmen have expressed their discomfort with the reform that Díaz intends to undertake, although the reaction this Thursday has been one of the most angry. The pulse in social dialogue continues and now the table is moving around the reform of the types of contracts, in order to reduce the high levels of temporary employment that structurally drags Spain.

The terms of the proposal do not like the entity chaired by Antonio Garamendi, who see in the reduction to three types of contracts – undefined, temporary and training- an obstacle to organizational flexibility of the companies. Entrepreneurs have described Díaz’s document as “regressive”, “interventionist” and that “inevitably recalls the old labor ordinances, a deployment more typical of contexts fortunately already overcome throughout Europe “.

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“Right now I see it very difficult for them to reach an agreement,” says a union source familiar with the talks. After a year and a half of successes in social dialogue, with major agreements such as pensions, extensions of time, the teleworking law or the ‘Rider law’; the labor reform emerges as the first great source of disagreement. “At this time, the text seems to respond to an ideological motivation without economic foundations; it does not take into account the reality of the business fabric and of working people, and, therefore, inevitably leads to disagreement”, the CEOE has advised in its note.

Deadline: December 31

The clock continues ticking, the weeks advance and the deadline to have these reforms closed, either with or without an agreement, is getting closer every day. The Third Vice President and Minister of Labor has been clear on this: before the end of the year her labor reform, the labor counter-reform or the “modernization of the labor market” (here are terms and euphemisms for all tastes) it has to be approved and in the BOE. This is included in component 23 of the Recovery and Resilience Plan sent to Brussels. And the receipt of a significant amount of European funds during the next few years depends on it.

Despite this Thursday’s outburst from the CEOE, neither party has closed the door to continue talking, nor has anyone left the table. Sources close to the talks frame it in part of a negotiation strategy, although progress so far has been few and issues such as temporality and outsourcing raise blisters among the business community, as has been raised by Work in its latest drafts. Although on the other hand the unions stretch, which recall that, on this occasion and unlike previous legislatures, “This time there are specific deadlines.”

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