Social partners agree on support plan for textiles sector

The government and trade unions have reached an agreement on the introduction of a law to implement a support plan for the textiles sector in order to facilitate the industry’s transition towards market liberalisation. The plan will provide for reintegration policies to alleviate the negative effects on employment, as well as measures to foster competitiveness in the sector.

The government and social partners of the textiles and clothing sector have reached a definitive agreement on the implementation by law of a support plan for the industry. The Intertextile Council (Consejo Intertextil) signed the agreement on behalf of employers, while employees were represented by two trade union federations – the Federation of Textiles, Leather, Chemical and Allied Industries affiliated to the Trade Union Confederation of Workers’ Commissions (Federación de Industrias de Textil, Piel, Químicas y Afines-Confederación Sindical de Comisiones Obreras, FITEQA-CC.OO) and the Federation of Allied Industries affiliated to the General Workers’ Confederation (Federación de Industrias Afines-Unión General de Trabajadores, FIA-UGT).

Content and aims of plan

A royal decree will lay down the content of the support plan, which was agreed last year by the Minister of Labour and Social Affairs, Jesús Caldera Sánchez, the Minister of Industry, Tourism and Trade, Joan Clos, and the sectoral social partners. The textiles and clothing industry employs 140,000 workers and represents more than 12,000 companies. The plan includes a series of sectoral and employment measures aiming to adapt the industry to the structural changes of the sector in world trade.

These measures are intended to achieve two objectives: to make the sector more competitive on the basis of full market liberalisation, and to limit the negative effects of this liberalisation on workers and regions. Specific aims for the sector are the following:

• to maintain as many companies and workers as possible;

• to retrain and relocate surplus workers;

• to provide special help for older workers who cannot be relocated;

• to help companies to comply with labour and social security obligations.

The plan includes special support measures for workers aged 55 years or over. If these workers have been in receipt of unemployment benefit for two years and then re-enter the labour market but experience significant difficulties in reintegration, they will be entitled to financial support of €3,000 a year for the first two years and €5,500 for the third and fourth years. Workers are eligible for the grant up to the age of 61 years. These subsidies will mean that most workers aged 55 years and over who have been made redundant in the sector will thus have a guaranteed income of no less than 70% of the wages they had previously received.

Commentary

These measures represent a clear step forward in comparison with previous attempts to restructure the textiles sector. The plan is adapted to the unique characteristics of the sector and will foster the competitiveness of companies. Moreover, it will support workers by alleviating the negative effects of the liberalisation of world trade.

The Ministry of Labour and Social Affairs (Ministerio de Trabajo y Asuntos Sociales, MTAS) and the social partners are trying to reach a similar agreement for the footwear sector.

Emma Cerviño, CIREM Foundation