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José Ramón Pin, Professor, IESE, University of Navarra

Trap processing

Thu, 17 Jun 2010 08:50:43 +0000 Published in El Economista (Madrid)

The processing of the Labor Reform Decree-Law as a law is a trap set by the Executive at civil service examination. If only the D-L is validated, the parliamentary groups will express their agreement, abstention or civil service examination to its totality. If it is processed as a law, each of the sections can be amended.

PP and CiU complain about the insufficiency of the reform proposal by the Government. Therefore, when it is passed into law, its contents should be thoroughly amended.

For example, asking that the severance pay for new permanent contracts be reduced to 33 days. Then, the PSOE will look for parliamentary allies to maintain the current 45 days, remaining as a guarantor of "workers' rights". Furthermore, it will say that if these parties win the 2012 elections, they will want to carry out this reform and will put the "burden of the test" on the civil service examination and not on the Government, the real cause of the need for these reforms.

In relation to employment agencies, the PP, CiU, and perhaps CC and PNV, will want to make their approval more flexible and reduce administrative obstacles. The PSOE will accuse them of commercializing labor intermediation and going against the Public Services of employment.

The Partido Popular could propose that companies could negotiate their own agreements or voluntarily adhere to the sectoral agreements. The opposite of the Government, which intends to give priority to sectoral agreements and allow companies to opt out by demonstrating that they are detrimental to the maintenance of employment, with agreement of committee of business or by arbitration award. The PSOE will incite the unions against the PP, since UGT and CCOO see in these negotiations part of their raison d'être.

So with other points of the labor reform, leaving the PSOE as moderate and the civil service examination as radical. Getting out of this trap is not easy, although the Galician Rajoy seems to know everything lately.