First Catalan congress of small and medium-sized enterprises

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The first Catalan congress of small and medium-sized enterprises, organised by the regional employers' association Fomento del Trabajo Nacional, concluded on 5 May 1999. The result was a series of proposals designed to promote the competitiveness of small and medium-sized enterprises, with special emphasis on labour and fiscal measures.

The first Catalan congress of small and medium-sized enterprises (SMEs), organised by the Catalan employers' association Fomento del Trabajo Nacional and its sectoral and regional organisations, came to an end on 5 May 1999. The congress had lasted for over five months, and had included 20 thematic sessions in different towns across Catalonia.

For some time, the representation of SMEs has been causing tension and conflict amongst the various employers' organisations in Catalonia. The main Catalan employers' organisation is Fomento (which is also a member of Spain's central CEOE confederation), but it has never enjoyed a large membership amongst SMEs. Until they merged in 1997 (ES9707118N), the representation of SMEs was traditionally disputed between PIMEC (Petita i mitjana emprese de Catalunya) and SEFES (Servicios Empresariales y Financieros). After the merger, it appeared that the pattern of employers' representation had been clarified, with a specific organisation for SMEs alongside a general organisation - following the national model of CEOE and CEPYME. However, the relationship between Fomento and PIMEC-SEFES has not been good: since 1997, divergences have appeared between these organisations that reflect different approaches to industrial relations in Catalonia and to the role of employers' organisations. By holding the recent congress, Fomento has initiated open competition with PIMEC-SEFES to increase its membership among SMEs, which form a very large part of the business fabric of Catalonia. Companies with up to 200 workers represent 99.8% of the total number of companies and employ 69% of wage-earners.

The main result of the congress has been a series of proposals designed to promote the development and competitiveness of SMEs. Some of them are already familiar, such as the simplification of administrative procedures, the creation of a more favourable financial environment and the promotion of public programmes to support SMEs. Taxation also occupies an important place, with proposals that combine tax reductions and tax incentives to help create companies, investment and internationalisation. However, without doubt the proposals that have had the greatest impact are those affecting labour.

In Spain, labour regulations are generally applicable across all companies regardless of size, except in the case of the rules on worker representatives (TN9905201S). Fomento's proposals are aimed at radically changing this situation by entering into two of the most controversial areas of industrial relations at the current time: the cost of dismissal (ES9905124F) and the new permanent part-time employment contract (ES9811289F). The Catalan employers' association calls for lower dismissal costs for SMEs, reducing the compensation for unfair dismissal to 20 days' pay per year worked up to a maximum of 12 years (compared with the current 45 days and 42 years). The second major proposal is to introduce a new type of permanent part-time contract, the "1,000-hour contract". Under this contract, an employer would guarantee a minimum of 1,000 hours' work per year, but in line with market requirements it could increase the number of weekly or daily hours up to a maximum determined by agreement and reduce it again if necessary.