2002 Annual Review for Spain

* As at 20 September.

Source: MTAS monthly report on collective agreement statistics; and CES industrial relations observatory bulletin.

Calculated on a weekly basis, average collectively agreed working time stood at 38.5 hours a week. Over 1998-2000, the introduction of a 35-hour week was a prominent topic in Spanish industrial relations. By the end of 2001, nearly 1.4 million workers had an agreed 35-hour week, with more progress made in the public sector than the private (ES0205204F). However, it appears that the issue is no longer as prominent as it was, and there was little progress in this area in 2002.

However, the 2002 agreement in the public administration (see below under 'Other issues') introduces a maximum working week of 37.5 hours (the equivalent of 1,647 hours per year), with the possibility of bargaining over a 35-hour week in local administrations. Annual paid leave has been increased to 26 working days.

With regard to the organisation of working time, the ANC 2002 stated that 'as a general criterion a greater effort should be made to establish a better management of working time, and of the duration and reorganisation of working hours, in order to achieve the shared aim of reconciling the needs of workers and companies. When the formulae used include annualisation and flexible distribution of working time (systems that favour the adaptation of companies), bargaining over them must be accompanied by the conditions for implementing these measures. This also involves limiting overtime that is not strictly necessary because it threatens the creation and maintenance of employment.'

Job security

In Spain, 30.99% of workers are employed on temporary contracts and the already high unemployment rate started to rise during 2002, standing at 11.41% in the third quarter (ES0209207N). The year also saw increased levels of industrial restructuring and job losses (ES0211202N). Lack of job security is one of the main problems perceived by Spanish workers.

On employment security, the ANC 2002 set the objectives of maintaining and increasing employment, fostering its stability and helping to avoid traumatic adjustments. In addition to wage moderation, the agreement calls for a proper use of the different types of recruitment and for mechanisms of internal flexibility within companies. The proper use of different types of recruitment means that companies' permanent needs should be met by recruiting workers on open-ended contracts, and temporary needs by recruiting workers on temporary contracts. The needs of training or integration in employment should be met through appropriate recruitment. The ANC also states that collective bargaining must take advantage of 'the labour regulations to adopt formulae that avoid the unjustified use of successive temporary contracts'. To provide the social partners with information that allows them to anticipate changes, the agreement recommends the creation of national sectoral 'observatories' on employment and competitiveness.

The ANC 2002 seeks to pursue a balance between flexibility and security, favouring internal flexibility within firms (though changes to occupational classifications, management of working time, continuing training and functional mobility) over external flexibility. It thus proposes the adoption of wide occupational classification structures which favour functional mobility within each category. The ANC 2002 promotes lifelong learning and the improved 'professional qualification' of workers, to ensure their employability, as a key element of adaptation for companies, and in view of a society based on knowledge and information.

In October, the regional government of Navarre and the CC.OO union confederation signed an agreement to promote stable recruitment and reduce temporary employment (ES0211104N). This pioneering agreement reinforces the systems of control of temporary recruitment and promotes collective bargaining on the conversion of temporary contracts into open-ended ones.

Equal opportunities and diversity issues

In 2000 (according to the INE survey of pay in industry and services for the fourth quarter), the average hourly earnings (including overtime) of women were 75.8% of men's.

There has been an increase in the number of clauses in collective agreements on non-discrimination or equal opportunities for men and women since the mid-1990s, though this increase seems to have slowed more recently (ES0209103F). In 1994, these clauses affected 24% of workers, which rose to 35% in 2000 and 2001. In 2001, such clauses were present in 14% of company agreements (covering 30% of workers) and 20% of sectoral agreements (covering 35% of workers). Though many of these clauses are mere declarations of intentions with little or no binding content, there appears to have been some limited advances in agreements on issues related to working time, occupational classification, promotion, employment and pay, that favour the establishment of equal opportunities.

It seems that collective bargaining is showing greater dynamism in terms of incorporating the terms of the law on reconciling work and family life that came into force in late 1999 (ES9911165F). Of the new aspects regulated by the 1999 law, paid leave for family reasons is the one that has received most attention in collective bargaining. Some agreements merely incorporate the new legislation, but others establish improvements, mainly aimed at increasing the number of days of leave, recognising paid leave for dealing with adoption and fostering procedures, and establishing a new type of leave for accompanying children and dependents to visit doctors. Furthermore some agreements: introduce improvements with regard to the reduction of working time for family reasons (eg breastfeeding breaks or reduced working time for family care); recognise family-related time-off rights for common law couples; exempt from flexible working time arrangements employees whose presence in the company is limited due to care of children, breastfeeding or pregnancy; and make maternity leave compatible with holidays.

The ANC 2002 seeks to promote equal opportunities and help to eliminate gender discrimination. It recommends that collective agreements should promote of actions aimed at eliminating pay discrimination and favouring equal opportunities for men and women in employment and recruitment.

On the legislative front in 2002, Law 33/2002 modified the Workers' Statute, so as to recognise the principle of equal pay as laid down in Article 141 of the Treaty establishing the European Community and in EU Directive 75/117/EEC. The principle of equal pay has thus been extended from basic wages and wage supplements to all advantages arising from the employment relationship in money or kind, present and future.

Other issues

In November 2002, the government and three trade unions representing workers in the public administration - CC.OO, UGT and the Confederation of Independent and Civil Service Trade Unions (Central Sindical Independiente y de Funcionarios, CSI-CSIF) - concluded a two-year collective agreement 'for the modernisation and improvement of the public administration' (ES0212106F). The accord's stated aim is to'increase quality in the provision of public services and the effective management of human resources'. Increased quality and competitiveness, and a more flexible and responsive administration must, according to the pact, be promoted through: greater motivation of the workforce: improvements in working conditions and employment stability; enhanced professionalisation and levels of qualification for public employees; and rationalisation of the structure of the workforce.

As well as pay increases and working time reductions (see above), the agreement includes specific measures such: reallocation of workers to priority areas; promotion of worker mobility between different public authorities and across the EU; abolition of the current limited 'replacement rate' for public administration vacancies; extension of the hours of public access to services and homogenisation of working time schedules; schemes for reducing absence from work (with the target of a 20% reduction); efforts to improve the reconciliation of work and family life; internal promotion and training, particularly in languages and new technologies; initiatives to enhance the stability of employment in the public sector, including a reduction in the rate of temporary employment; improvements to the quality of life at work; and better regulation of pay and incentive payments, together with programmes to increase productivity and performance.

Over 2002, the high industrial accident rate (ES0209201N), especially in the construction sector (ES0210202F), was the subject of heated debate (ES0211103N). In the autumn, agreements were reached between trade unions and a number of public authorities at local and regional level, with the aim of introducing measures to improve risk prevention and reduce the number of industrial accidents. These measures include the regulation and control of subcontracting in construction works commissioned by the public administration in question (ES0212205F). Subsequently, in January 2003, the government and social partners reached an agreement on improving occupational risk prevention, with the aim of reducing the industrial accident rate (ES0301208F). The measures include the: introduction of a 'bonus/malus' system of increasing or decreasing employers' industrial accident insurance contributions according to their accident rate; an updating of the system of information on industrial accidents; and closer monitoring of compliance with the risk prevention legislation.

Legislative developments

The most controversial legislative development of 2002 was royal decree law 5/02 reforming unemployment benefit issued by the government in May (ES0206210F), following the failure of negotiations with the social partners on the subject. The reforms included making receipt of unemployment benefit subject to various job-seeking conditions, and placing a number of other restrictions on benefits. The trade unions responded with a general strike on 20 June (ES0206204N and ES0207201N) and thereafter organised various other mobilisations and issued strong demands for the withdrawal of the decree and a return to the social dialogue, so that these subjects could be dealt with through bargaining. The unemployment reform measures also proved unpopular with the public. As a consequence, in October the government agreed to withdraw most of the controversial measures (ES0211206F and ES0212201N). Subsequently, the government also agreed to repeal a remaining controversial part of the reform, relating to the special agricultural unemployment benefit scheme (ES0302201N).

Law 36/2002 on measures for the establishment of a gradual and flexible retirement system was passed during 2002, thus giving effect to pension reforms agreed in 2001 (ES0201250N).

The organisation and role of the social partners

There were no major changes to the organisation and role of the social partners in Spain during 2002. The general strike staged by trade unions on 20 June 2002 (see below under 'Industrial action') in protest against the government’s reform of the unemployment insurance system (see above under 'Legislative developments') led to the partial interruption of many bargaining and dialogue processes. However, though trade union action in opposition to agricultural benefit reform continued throughout the year, other bargaining activity returned almost to normal.

In March , the UGT union confederation held its 38th congress (ES0204201N). Cándido Méndez was re-elected as general secretary as part of an expanded executive committee, and delegates approved various new demands in areas such as working time reduction, employment stability and social security. The CEOE employers' confederation held its general assembly in February , re-electing José María Cuevas for his sixth term as president (ES0203205N). Mr Cuevas took advantage of the occasion to criticise severely decentralisation to the regions, which he believes has stirred up regional differences and increased public expenditure, and to call for new liberalising reforms of strategic sectors such as energy and telecommunications, as well as of industrial relations and social protection.

Industrial action

The most notable industrial action of 2002 was a one-day general strike organised by trade unions on 20 June (ES0206204N and ES0207201N) - the first time that a general strike had been called since 1994. The strike was triggered by the government’s reform of unemployment insurance (see above under 'Legislative developments'), although the action was widely interpreted as a result of underlying tension following the introduction of successive reforms by the government without negotiation with the trade unions. There was major disagreement between the unions and the government about the number of workers who supported the strike, and conflict over the provision of minimum public services during the action. Although the government initially claimed that the strike action had been a failure, it was followed by a withdrawal of most points of the reform, a government reshuffle (with a new minister of labour, Eduardo Zaplana) and a fall in the government's popularity. There was also widespread action in opposition to the reform of agricultural unemployment benefit.

Figures on industrial conflict in 2002 are not yet available, but it seemed to be on the increase. Major disputes over closures, restructuring and job losses included those at Lear (ES0206201N and ES0203204N), Fontaneda (ES0205201N), Iberia (ES0201247N), Ericsson and Siemens (ES0201205F). In April 2002, 500 homecare workers in Catalonia went on strike in protest at the lack of progress in concluding a collective agreement for the sector and to call for improvements in pay and working conditions (ES0206202N), while there was a major pay strike by municipal bus workers in Barcelona (ES0206211F).

Employee participation

There were no major developments during the year in the area of employee participation. No significant activity was reported on national transposition of the 2002 EU Directive (2002/14/EC) on informing and consulting employees (EU0204207F) or Directive (2001/86/EC) on employee involvement linked to the European Company Statute (ECS) (EU0206202F).

Telework

2002 saw some signs of response in Spain to the agreement on telework signed in July 2002 by the EU-level central social partners (EU0207204F), which is to be implemented by the national social partners in the Member States (by July 2005). The social partners have published the text of the agreement on their web pages. The UGT union confederation has expressed a favourable view of its content, and stresses: the guarantee of equal treatment for workers in the company and teleworkers; the possibility of voluntary return to the worker's previous situation; the maintenance of the worker's status; the regulation of information and consultation rights for workers' representatives, and the employer's obligation to avoid isolation of the worker by facilitating contact with fellow workers and access to company information. In their January 2003 intersectoral agreement on bargaining in 2003 (see below under 'Outlook'), the social partners promote the implementation of the EU-level agreement.

There were no legislative initiatives on the issue of teleworking during 2002.

Vocational training

There was no specific response in 2002 by the Spanish social partners to the 'joint framework of actions for the lifelong development of competencies and qualifications ' agreed by the EU-level social partners in March 2002 (EU0204210F).

The Spanish continuing training system is based on the extensive involvement of the social partners and collective bargaining in managing all levels of continuing training, enshrined in the partners' third National Agreement on Continuing Training (Acuerdo Nacional de Formación Continua, ANFC), signed in December 2000 (ES0101130F). Since the 2000 agreement, the system has been administered by the Tripartite Foundation for Training in Employment (Fundación Tripartita para la Formación en el Empleo) (ES0109202F). At the end of 2002, as a result of rulings by the Constitutional Court (Tribunal Constitucional) recognising the competences of the regions (autonomous communities) of Galicia and Catalonia with regard to continuing training, and court action on possible irregularities in the management of subsidies, the Spanish government was considering the need to reorganise the system (ES0302103N). A debate started around a draft document in which the government proposes a thorough reform of the system, maintaining the current tripartite management and funding the system with 0.35% of workers' social security contributions. However, a new type of subsidy for companies – long called for by the CEOE employers' confederation – would be introduced to stimulate continuing training, in the form of reductions in social security contributions. Furthermore, the management of part of the system would be decentralised to the regional level, in accordance with the court rulings.

The proposals are opposed by the CC.OO and UGT trade union confederations because they are seen as involving a separation of continuing training from collective bargaining and as reducing the competences of the Tripartite Foundation, thus breaking with the principles of the third ANFC agreement. In response to the government's proposals, they unions have issued a joint document in which they propose: drawing up a basic regulation on the issue; maintaining the principles of the third ANFC; linking continuing training to a legal framework of qualifications and vocational training; maintaining the range of training initiatives that have already been established; maintaining the competences of the Tripartite Foundation; linking the whole system to collective bargaining; and coordinating the functions of the national Tripartite Foundation with the management of continuing training by the regions.

New forms of work

There was no specific legislation regulating new forms of work in 2002. With regard to the draft EU Directive regulating temporary agency work (EU0204205F), UGT believes that it is, in principle, positive but feels that the proposal represents only a partial view that coincides with the views of the employers, giving precedence to this type of work. In particular, UGT is concerned about the proposed exceptions to the principle of equal treatment and non-discrimination (particularly applying to temporary work assignments of less than six weeks), which, in its view, would be too lax and lacking in justification. As indicated by table 4 below, employment on temporary contracts is at a very high level in Spain, while temporary agency work is also relatively common.