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REFORMS IN EMPLOYMENT MATTERS Madrid, 28 October 2015

REFORMS IN EMPLOYMENT MATTERS Madrid, 28 October 2015. Term objectives: to stimulate growth and job creation. Diagnosis: global recession, financial system difficulties, lack of competitiveness and labour market flexibility.

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REFORMS IN EMPLOYMENT MATTERS Madrid, 28 October 2015

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  1. REFORMS IN EMPLOYMENT MATTERS Madrid, 28 October 2015

  2. Term objectives: to stimulate growth and job creation • Diagnosis: global recession, financial system difficulties, lack of competitiveness and labour market flexibility. • Comprehensive reform strategy: restructuring of the financial system, fiscal consolidation and improving competitiveness. • Improving competitiveness: • Ensuring Market Unit • Reinforcement of competition • Indexation of the economy • Energetic reform • Public Administration Reform • Labour Reform

  3. Reforms in the labour market • Starting point, structural weaknesses: wage inertia that limit productivity, lack of flexibility, collective bargaining not adapted to reality. • Labour Reform: • Encourage internal flexibility: • Replacing the professional categories for professional groups. • Simplification of the substantial change in working conditions. • Promoting alternatives to dismissal: suspensions and reduced working hours. 2. Promotion of a modern collective bargaining: • Facilitating partial non-application or opt-out of collective agreements as an alternative to dismissal. • Giving greater prominence to the company agreement. • Setting in a year the indefinite ultra activity , unless otherwise agreed. • 3. Favour the efficiency of the labour market: • Generalizing compensation for unfair dismissal in 33 days. • Removing prior administrative approval in collective employment regulation measures. • Eliminating “express "redundancy

  4. Reforms of Active Employment Policies • Double objective: greater effectiveness and efficiency • Effectiveness: • Coordination: Activation Strategy for Employment, PAPE, identifying market needs. • Rating: 70% conditionality of funds based on achievement of objectives. • Recruitment incentives: • Flat rate price of 50 € for new self employers: today 353,126 benefit • Flat fee of 100€ for Indefinite labour contract 100: 328,000 benefit today. • Minimum Exempt 500€: 108,000 benefit today. • Measures from Entrepreneurship and Youth Employment Strategy : 353,126 benefit today. • Youth Guarantee: 137 437 enrolled. • Efficiency: • Combating fraud, limiting advances, check training. • Promoting public-private partnership (agencies) • Competition in the management of funds, especially in training for employment.

  5. Measures for the protection of the unemployed • Objective: To ensure long-term sustainability and solidarity model of unemployment protection, complemented with other protection mechanisms such as social insertion income of autonomous communities. • Reinforcement measures in the field of active policies: • PREPARA Program: extension until unemployment> 20%, greater amount 450€. • PAE program: almost 100,000 attended with a degree of inclusion of 15%. • Orientation Program for new long-term unemployed. > 30 year budget of more than 500M € in 2 years for guidance.

  6. Measures to promote self-employment, health and safety, and corporate social responsibility • Self-employment: flat rate, offering the combination of unemployment benefits with the starting of a self-employed activity, possibility to choose a reduced contribution base in the case of multiple activity. • Health and Safety: it has been approved the Spanish Security Strategy and Health at Work 2015-2020, developed with the consensus of the social partners and regional government. • Corporate Social Responsibility: Spanish Strategy for Corporate Social Responsibility. The Strategy responds to the recommendations reflected in the renewed EU Strategy on Corporate Social Responsibility and contains a total of 60 measures aimed at promoting CSR among all types of organizations and in society as a whole.

  7. Measures to promote self-employment, health and safety, and corporate social responsibility • Collective bargaining: number of agreements increases year after year since 2012: 16%, 83% and 33% • Collective redundancies: reduced by 50%, from 67,981 to 34,277 workers affected in 2014. • With moderate growth in GDP of around 1% net employment generation has been achieved - ever seen in Spain until this moment.El economic growth is strong in generating employment (3.1% growth and job creation 3 , 2% -all growth translates into job creation,). • Spain getting out of the crisis by creating stable employment, permanent employment from the beginning (today in Spain 75% of the people who work have a permanent job, whereas before the crisis, the figure was 69%). • Spain gets out of the economic crisis with growth of youth employment from the outset (youth employment is growing at 8%). In the crisis of the 90s we had to wait two years for youth employment to be created; now youth employment is created from scratch. • Growth is happening in all sectors

  8. THANK YOU FOR YOUR ATTENTION

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