PSOE and United We can have closed an agreement on Tuesday that reaffirms its commitment “to the repeal of the labor reform of 2012”. The joint statement of the partners of the Government, sent after the meeting convened by Pedro Sánchez to settle the conflict with the second vice president, Yolanda Díaz, – and which was also attended by Nadia Calviño and other socialist ministers involved in the new framework of labor relations – is committed to the dismantling of the PP’s labor legislation “in the terms established by the coalition agreement and the Recovery Plan sent to the European Commission”.
What is at stake when we talk about the “repeal of the PP labour reform”?
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The labour reform that is currently being debated, and which must be approved before the end of the year, is affected by these two elements. On the one hand, PSOE and Unidas Podemos agreed in their agreement to form the progressive coalition several points on labour issues, among which were expressly the repeal of the PP’s labour reform and, urgently, of several specific elements. For example, the repeal of the prevalence of the company agreement over the sectoral agreement and the limit set by Rajoy to the so-called ultra-activity of collective agreements (their extension once they expire without a new one having been agreed).
Asked about the specifics that will be taken to the dialogue table regarding these aspects, the government spokeswoman, Isabel Rodríguez, who was also present at the meeting, has avoided pronouncing beyond ensuring that “there is a commitment” in the “terms” of the speech of investiture, the coalition agreement – which establishes this specification regarding the agreements, for example – and the documentation sent to the European Commission in the framework of European funds.
The renewal of the legislation on the labour market is also included in the reform plan sent to Brussels in the European Plan for Recovery, Transformation and Resilience after the pandemic. In this case, several commitments are contemplated in a more generic way, such as the “modernization” of collective bargaining, the reduction of temporary and precariousnessas well as internal flexibility measures in companies to prevent mass redundancies in the face of future crises. This document sent to the European Commission, Component 23, also refers to ultraactivity and ‘the relationship between sectoral and company agreements’, but only mentions them, without specifying how both issues are to be changed.
Executive sources say that has not been entered into the specific detail of the measures to be proposed by the Executive in the new framework of labor relations in the aspects that are controversial and that the second vice president, Yolanda Diaz, questioned that the Socialists intend to carry out. What they emphasize in Moncloa is that the important thing is to bring a consensus position to the table of social dialogue – for which a coordination mechanism has been established – and try to reach an agreement with employers and unions.
Rodríguez has played down the fact that Sánchez, two vice presidents – Nadia Calviño and Yolanda Díaz – and four ministers – María Jesús Montero (Finance), José Luis Escrivá (Social Security), Pilar Alegría (Education and Vocational Training) and herself – have met for about an hour to conclude that they have to fulfill the commitments made in the programmatic agreement and with Brussels. “A coalition government for the first time in democratic history requires pedagogy about the coalition and continuous improvement in the way in which the different political forces relate to each other”, explained the spokesperson.
High-level meeting to stop the crisis
After months of negotiations between the Ministry of Labour and the social partners, last week an internal conflict broke out in the coalition over this key reform. The regulation faces this month the final stretch in the social dialogue with employers and unions, as it has to be approved before December 31.
Last Wednesday, the two formations of the coalition agreed on a new scheme of internal coordination, which gives space to Economy and Social Security in the negotiation on labour reform, which continues to be led by Labour. In addition, PSOE and United We can set the meeting this Tuesday for the President of the Government to lead an inter-ministerial meeting to put black on white the position of the Executive on the labor reform after the crisis opened in this regard.
Drom the Moncloa have stressed that “the meeting has taken place in a positive atmosphere and a constructive attitude. For the PSOE it was necessary to establish a system of operation for the negotiations that until now was piloting exclusively the Ministry of Labour and that, in the opinion of the socialists, had been involved in matters that exceeded its powers without counting on the departments involved. “It is abundantly clear that the previous work is positive. We are in the final stretch [of the negotiation of labour reform]. Greater coordination of the Government is positive to move forward in a greater dialogue for a better agreement,” said the spokeswoman.
In United We can also celebrate the meeting and the resulting agreement, which refers expressly to the “repeal” of the PP labor legislation, a term that have avoided the Socialists in recent days. Re-establishing this commitment was one of the main objectives of the minority partner, given its fear that Nadia Calviño would try to decaffeinate the reform. Given the positioning of the economic vice president, Yolanda Díaz demanded that President Sánchez lead the internal discussion at the meeting held today. “I think that today the workers of this country have won. What we are going to do is to comply with the Government agreement and, in addition, with that component 23 that we have already closed in its day and the Ministry of Labor and Social Economy sent to the European Commission, “has valued this afternoon Yolanda Diaz.
During the session of control to the Government in the Senate, the second vice president has ensured that the entire Executive is determined to end “with the errors of the labor policy of the Popular Party”. Diaz has assured that in the repeal of the labor reform are “committed” President Sanchez, the first vice president, Nadia Calviño, the PSOE and United We can.
“It would be very poor to address or refer to what the Government is raising simply on a semantic issue. Any rule implies the repeal of the previous one. Legally there cannot be a repeal without something alternative. This Government has understood that it was not possible to stay only with a counter-reform but that we have something much more ambitious,” Rodriguez explained at the press conference after the Council of Ministers: “It is more attractive for our country and for workers who understand that this Government is not satisfied with just responding to the grievances of the past but is a Government that looks to the future with hope knowing that we make a transformative change”.
In addition to the commitment to repeal, the agreement includes: “The temporality and the precariousness are, together with unemployment, the main anomalies of the Spanish labour market and we are determined to leave them behind. It is essential to have balanced tools in collective bargaining and, at the same time, to establish clear conditions for subcontracting”.
The Executive insists on the pact “with all parties”.
The parties have agreed that, “on the basis of the work done with the social partners so far”, the Executive will try to reach agreement with the unions and employers. “The Government seeks, through social dialogue, a fair and balanced agreement with all parties. This will is the best guarantee of obtaining a lasting reform within the agreement established with the European Commission in Component 23 of the Recovery Plan,” says the statement released by Moncloa.
The text agreed between the parties sets the social agreement as a goal, but not as a condition. This is another delicate point of the negotiation. The majority unions and employers are far apart on several issues of labor reform, as in the dismantling of the PP legislation on collective agreements. CCOO and UGT have expressed their willingness to try to reach a three-way pact, but they have also warned the government that they will not support a lowered legislation that does not restore the rebalancing of collective bargaining promised by the coalition (prevalence of sectoral agreements and ultraactivity).
After Tuesday’s meeting, the government considers the conflict settled. From there and although the fine print has not been addressed, there remains the great challenge of putting together an agreement in social dialogue. “The CEOE has expressed its interest in agreeing on the labor reform in the sense that they are sitting at the table. They have disagreements on some of the points, but progress is being made,” explained the Minister of Finance, María Jesús Montero. “I am convinced that we can reach a joint agreement with business organizations, workers and the government itself,” said Montero on the eve of the social dialogue meeting again with the new coordination mechanism within the coalition.
The Spanish Government is defining the labour relations of the 21st century, keeping its word. The aim is to approve, before the end of 2021, modern labour legislation that revises the imbalances of the 2012 reform and leaves behind the structural problems of our labour market, continuing along the path that we have already started with the derogation of Article 52.d that allowed dismissal for medical leave, equality regulations, ERTE, the Rider Act or Remote Work.
In this sense, in accordance with the functioning established on 27 October, a meeting was held this morning within the Government to advance in the negotiations with the economic and social agents, fulfilling the commitments made both in the coalition programme and in the Recovery Plan approved by the Council of Ministers and sent to the European Commission. The meeting took place in a positive atmosphere and a constructive attitude. It was noted that:
1. the Government is committed to the repeal of the 2012 labour reform in the terms set out in the coalition agreement and the Recovery Plan sent to the European Commission. Temporariness and precariousness are, together with unemployment, the main anomalies of the Spanish labour market and we are determined to leave them behind. It is essential to have balanced tools in collective bargaining and, at the same time, to establish clear conditions for subcontracting.
2. On the basis of the work carried out with the social partners so far, the Government is seeking, through social dialogue, a fair and balanced agreement with all parties. This will is the best guarantee to obtain a lasting reform within the agreement established with the European Commission in Component 23 of the Recovery Plan.
3. The Government’s objective is to build a new model of labour relations for the 21st century to accompany the process of modernization of the economy thanks to European funds, through social dialogue.
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