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Source: Arrabe Asesores 19 July 2011

SPANISH LABOUR MARKET TESTED FOR EUROPE

In recent months, from Europe are underway in the Spanish labor market valuations and structural reforms that are necessary to solve the most serious problems of the Spanish economy.

Among others, the conclusions that become relevant and always based on comparative analysis of systems implemented to date in Europe, concludes that the two key issues that our labor market concerns are:

The high rate of unemployment and under-utilization of the various forms of temporary contracts, both must be implemented by applying a series of reforms and measures to date have not been raised strictly not part of the Government's plans Spanish.

The analysis concludes that the unemployment rate could be reduced or effectively controlled with decentralization in collective bargaining on wages, giving the social actors in the maximum bargaining power for labor relations and adjust to the circumstances, both economic and market demands, today industrial relations and negotiation are too rigid, not adjusting to the reality of business where applicable. It would be necessary to bring reality to reality productive bargaining, as the reform of Article 82 of the Workers' Statute, which has been wholly inadequate.

An analysis of other European markets, we conclude that the alternative to the extensive use of temporary contracts would be reduced by applying the high level of protection as that currently have permanent contracts.

Under this analysis, it is necessary to make changes immediately, if we want to situations of recession without the possibility of contracting situations to achieve before the current crisis.

We must continue working together and with the same direction to give impetus to our labor markets, focusing our efforts on creating jobs with effective tools that contribute to the resolution of system problems with an effective revival of confidence business investment in one of the greatest corporate assets - human capital.
 

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