In July 1998, Spanish trade unions and government opened negotiations over improving unemployment benefit cover for long-term unemployed people, which has deteriorated in recent years.
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In July 1998, Spanish trade unions and government opened negotiations over improving unemployment benefit cover for long-term unemployed people, which has deteriorated in recent years.
At present, Spain has the highest unemployment rate in the EU, but only 50% of unemployed people receive any kind of benefit and the proportion has fallen in recent years. This situation is leading to an increase in the number of cases of social exclusion, and the trade unions have for some time been expressing their concern about this.
Following recommendations issued by the Bank of Spain (Banco de España), the Government has announced that it wishes to assign more funds to active employment policies, in particular to vocational training and incentives for companies that recruit employees. As the aim of this is job creation, it is uncontroversial. However, the unions feel that passive employment policies - benefits - must be sufficient for workers successfully to seek employment. Some workers, such as those with families to support, long-term unemployed people and those with no other income, are particularly at danger if they receive no benefits. They are usually workers in the upper age bracket who often lack the training that would allow them to obtain a new job. The unions have calculated that 150,000 people are in this situation. They are asking the Government to assign PTA 100 billion per year to these benefits. These funds should come partly - they suggest - from the surplus of the National Employment Institute (Instituto Nacional de Empleo, INEM), which amounted to PTA 30 billion in 1997.
It will not be easy to reach an agreement in the current talks on measures to increase employment. As well as unemployment benefit for long-term unemployed people, the other subjects of debate are economic incentives to companies that reduce working hours and the treatment of part-time work (ES9807280N). All these measures will require an increase in public expenditure, which is a point of contention for both the Government and the employers' associations.
Eurofound recommends citing this publication in the following way.
Eurofound (1998), Negotiations aim to improve unemployment benefit cover, article.
