CEOE employers has positively assessed the Congress of Deputies is voted overwhelmingly in favor of labor reform. The lower house has definitively given its approval to the royal decree with the measures agreed a month before between the Government, the employers and the unions, without modifying the original text as the employers had demanded so as not to distance themselves from the agreement later. A text that the business organization chaired by Antonio Garamendi considers that “it consolidates the essentials of the 2012 labor reform” and that it “guarantees social peace”, as the entity has declared in a brief statement.
In the same way as Yolanda Díaz’s labor reform has passed the parliamentary process by a single vote, the endorsement of the CEOE also came last month, not without internal divisions. Weight employers such as Workforce Development, the Madrid CEIM or the car sector (ANFAC) or from the field (ASAJA) showed their dissatisfaction with the rule, even though the CEOE finally ended up saying ‘yes’ to it. “This is an agreement that gives stability to the country over time. An agreement that provides certainty abroad and favors confidence in the country,” they consider from the business entity.
One of the pillars of the reform is the simplification of the modalities of temporary hiring and the limitation of its causes, with the intention of reinforcing permanent contracts and reducing the high rates of existing eventualities. According to the latest EPA, one in four wage earners has a temporary contract and, among certain groups, such as young people, this proportion reaches one in two. In this sense and despite the reluctance shown during the negotiation process, the employer trusts that the new rule will serve to “reduce temporary employment in our country as requested by the European Union”.
On the other hand, and despite the arguments of both the parties that support the Government and the PP, the new labor reform does not repeal or modify several of the aspects of the PP legacy. Like the reduction of compensation, the removal of the processing wages or the withdrawal of the administrative authorization of the collective dismissals, among others. In this sense, from the CEOE they have applauded that the new norm “consolidates the essentials of the 2012 labor reform”.
The package of measures designed by the second vice president, Yolanda Díaz, does modify other aspects of the PP rule, such as the ultraactivity wave prevalence of sectoral agreements on those of the company, which in this sense return lost positions to the unions in relation to collective bargaining.