Making labour market reform deliver more and better jobs: The Spanish case

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Making labour market reform deliver more and
better jobs The Spanish case
Labour market reforms and macro-economic policies
in the Lisbon agenda
Jorge Aragón Comisiones Obreras (CC.OO.-Spain)

• ETUC
• Brussels 20 - 21 March 2006

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The pattern of growth of the Spanish economy
Main characteristics Positive High rates of
growth (gt3 annual rate 5 years) Increase in
employment (2,7 annual) Convergence to UE in GDP
per person (93-98 EU-25) Surplus in the public
accounts (1 surplus 2005) Negative High
inflation (4 -2005) Deficit in the current
account balance of payments (7 GDP) Indebtedness
of families (110 income) Internal context High
level of decentralisation (17 regional
Parliaments)
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External factors
Positive Favourable macroeconomic context
EU Stable rate of exchange Low rates of
interest. Support of the structural funds of
EU Negative Increase in the price of petrol
Low rate of growth of GDP in the main economic
partners of the EU
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Internal Factors (I)

• Positive
• Increase in domestic demand
• Family expenditure consumption and investment
  (homes)
• Widening productive capacity
• Increase in the supply of labour
• Women
• Immigrants
• Social stability social dialogue
• Stability in the budget, compatible with
• Increase in social expenditure
• Increase in public investment policies

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Internal factors (II)

• Negative
• Industrial specialisation in sectors with low
  levels of innovation
• Low productivity
• External trade deficit
• Excessive protagonism of the building sector
  homes
• Increase in inflation
• Speculation
• Segmentation of the labour market
• High levels of fixed-term contracts
• Lack of mechanisms for the integration of
  immigrants

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Bases of social dialogue

• Consensus on
• Improvement of competitiveness
• Promotion of stability and quality of employment
• Social Cohesion. Development of social policy
• Stability and balance of public accounts
• Two instruments for the agreements
• Legislation
• Bilateral agreements
• General
• Collective bargaining

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Structure of the social dialogue
Background Bilateral agreements
CC.OO.-UGT/CEOE-CEPYME since 1997 Employment
stability Structuring of collective
bargaining Interconfederal agreements in
collective bargaining since 2003 The present
process of social dialogue Tripartite Social
Agreements Declaration of social dialogue
2004 Competitivity, job stability and social
cohesion Negotiation between Government, trade
unions and employers Agreements on new
legislation Bipartite agreements Independent
functioning of the different areas of negotiation
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Main topics in the social dialogue (I)

• With agreement
• Regularization of immigrant workers
• Extrajudicial solutions for labour conflicts
• Observatories for the modernisation of industrial
  sectors Prevention of risks and injury at the
  workplace
• Vocational training and lifelong training
• Law for dependent persons
• Extension of collective agreements
• Social dialogue in the Public Sector
• Improvement in the functioning of labour
  inspection
• Minimum wage
• Minimum pension

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Main topics in the social dialogue (II)
With disagreement Law for gender equality
Transposition of directive on Implication of
workers in the European Company Pending Reform of
labour contracts Reform of the general pension
scheme Statute of autonomous workers State
policies for education, research and development,
energy policy Transposition of the EU directive
for information consulting for the workers
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Annual agreements on collective bargaining

• /\ wages (inflation and productivity)
• Clauses of wage guaranty
• Promotion of employment of quality (priority)
• Articulation of structure of agreements
• Labour health
• Equal opportunities
• Promotion of employment for disabled persons
• Training

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Diagnosis

• There is a direct relationship between the
  structure of production and the labour market
• The Spanish economy has strong limitations in the
  middle term
• Competitivity
• External trade deficit
• Inflation
• Low Research Innovation
• Segmentation in labour markets
• Quality of employment
• Training

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Proposals

• Take measures towards a cycle of common
  expansion, and take advantage of the potential of
  the internal market
• Cooperative structural reforms (i.e. energy,
  infrastructures)
• Avoid fiscal competition
• Encourage specialization in production more based
  on innovation
• Prevent the segmentation of labour markets and
  job precariousness Promote equal opportunities
  and integration of immigrants
• Role of social dialogue to link macroeconomic
  policies and the reform of the labour market