Social dialogue encounters problems

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The process of social dialogue in Spain has been encountering difficulties during the autumn of 1998, following the conclusion of important agreements in 1997 and early 1998. Tension focuses on the problem of employment and social protection, which are of prime importance for the trade unions.

According to the main trade union confederations, CC.OO and UGT, the 1999 state Budget is a crucial opportunity to develop new job creation policies, including the reduction of working time, the development of permanent employment, improved social protection for unemployed people and the better regulation of part-time employment. However, they believe that the Government seems unwilling to devote the necessary resources to these questions (ES9810286F), and the national process of social dialogue has come under strain, following the conclusion of important agreements in 1997 and early 1998.

The institutionalised process of social dialogue in Spain currently consists of three negotiating commissions. The first one, on protection of unemployed people, is deadlocked (ES9810183F). The unions are demanding guaranteed subsidies for about 200,000 long-term unemployed people with family responsibilities. However, both the government and the employers' associations feel that these funds should be devoted to active employment policies.

The second commission, on increasing secure employment, has also encountered serious difficulties. The unions want to link assistance to companies explicitly with job creation through the reduction of working time. The government wants to stimulate secure job creation without reference to working time, whilst the employers' associations state that in agreements on working time there must be no interference from outside the companies themselves.

In the third commission, on part-time employment, things are going better (ES9807280N), and there is already an agreement on social protection. This will apply a corrective coefficient so that five hours worked are equivalent to a whole day's social security contributions, which would improve the unemployment benefit and pensions of part-time workers. However, there is still no agreement on the regulation of employment contracts. Here the key topic is how long working time has to be in order to be considered "part time". Up to now, a working day just one minute shorter than statutory working hours was considered as part time. The unions want 60% of working time to be considered full time, whilst the government wants to set the threshold at 75%. It seems probable that a compromise will be reached. However, other questions could still be pending, such as the distribution of working time and the consideration of overtime in relation to part-time contracts. In these aspects, the employers may put up greater resistance to regulation.