The government has reached an agreement with the unions UGT and CCOO on a draft law to reform unemployment protection in Spain. This reform will affect both benefits and subsidies collected when the benefit is exhausted or if one is not entitled to it. The draft law will now be processed in the Congress of Deputies with the objective of being approved promptly, allowing Spain to access the fourth payment of European funds.
The second vice president and Minister of Labor, Yolanda Díaz, clarified that the reform is not about mere money but rather ensuring the rights of workers. The reform is aimed to benefit workers, especially women who were disadvantaged under the previous regulations. While the government was not able to secure the support of CEOE and Cepyme, they remain hopeful of a tripartite agreement.
The employers’ associations issued a statement expressing their dissatisfaction with the lack of negotiation and presentation of an economic report accompanying the reform. The absence of an economic memory in the proposal raises concerns about its impact amidst the extension of the General State Budgets.
The reform aims to protect a wider range of individuals and increase the level of support provided. This includes simplifying access to subsidies and making benefits compatible with employment, encouraging job seekers to re-enter the workforce. The government is committed to fighting long-term unemployment, especially affecting those over 52 years of age.
The reform has undergone revisions following an initial rejection by Congress in January. The changes focus on maintaining a Social Security premium of 125% for subsidies to individuals over 52 years of age. The government is working towards ensuring the norm is approved in Congress in a timely manner to access European funds.
The government has until May 20th to approve the reform, although the parliamentary processing deadlines suggest meeting this date may be challenging. However, failing to meet this deadline could jeopardize Spain’s access to the fourth payment of European funds. The government will have another six months to approve the reform to ensure full access to the funds.