Tripartite agreement for competitiveness and social cohesion reached in Catalonia

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February 2005 saw the conclusion of a 'strategic agreement for the internationalisation, employment quality and competitiveness of the Catalan economy' by the Catalan regional government and regional social partners. The agreement sets out a wide range of commitments that have the dual aim of modernising the industrial fabric and increasing social cohesion. The topics covered include improvements in training, active employment policies and the social dialogue in Catalonia.

On 17 February 2005, the Catalan government and regional social partners signed a 'strategic agreement for the internationalisation, employment quality and competitiveness of the Catalan economy' (Acuerdo Estratégico para la Internacionalización, la Calidad del Empleo y la Competitividad de la Economía Catalana). The signatory employers' organisations were Fomento del Trabajo Nacional, PIMEC and FEPIME (the last two representing small and medium-sized enterprises), while the trade unions involved were the regional organisations of the Trade Union Confederation of Workers’ Commissions (Comisiones Obreras, CC.OO) and the General Workers’ Confederation (Unión General de Trabajadores, UGT).

This agreement follows a commitment made by the signatories in February 2004 to initiate a process of concertation with the aim of reinforcing the competitiveness and sustainability of the Catalan economy. The signature of the deal was preceded by approximately a year of negotiations, which indicates the scope and complexity of the accord. The agreement is composed of 86 measures covering a wide range of issues, the great majority of which commit the parties for the whole of the current Catalan government's term of office, ie until late 2007. Furthermore, the strategic agreement is not a mere declaration of principles, since each of the measures is accompanied by an implementation schedule and a corresponding budget.

The strategic agreement is based on a diagnosis of the economic and social situation of Catalonia shared by the signatories. It highlights the fact that in recent years the international competitiveness of the Catalan economy has undergone profound changes, in particular due to the economic emergence of various countries that until recently had remained outside the world markets. The many cases of industrial restructuring and relocation (ES0411101F and ES0402205F) are indicative of the impact that globalisation has had on the Catalan economy. Furthermore, shortcomings are apparent in the field of social cohesion. In addition to traditional labour market problems - such as a high level of precarious employment, a high unemployment rate among women and young people, and long-term unemployment - new problems are emerging and also need to be resolved, according to the parties. These include the high industrial accident rate, the high proportion of the population below the poverty line, low minimum pensions and little social welfare for families. All of this is seen by commentators as a reflection of a weak welfare state, which has deteriorated in recent years and is threatening social cohesion. Weaknesses are also perceived in labour productivity, for which one of the main reasons is the bias of employment towards sectors with low added value. Productivity is also seen as being weakened by factors such as: relatively poor basic infrastructures; increasing congestion in the transport of persons and goods; problems of supply and quality of electrical energy; a risk of a 'digital schism' in Catalonia; the high school failure rate; deficits in vocational training; and a low level of investment in research, development and innovation (RDI).

This shared diagnosis leads the signatories of the strategic agreement to consider that much of the region's past economic growth has been based on a model of expansion of relatively low-cost activities and low growth in productivity, which is unlikely to succeed in the future. Therefore, the parties wish to lay the basis for a new model of growth that will ensure collective welfare in the medium and long term. Through the strategic agreement, they aim to transform Catalan competitiveness by increasing productivity, improving social cohesion, and achieving greater internationalisation of companies and better industrial relations, all in the context of an increasingly global economy.

Main points

As stated above, the strategic agreement includes 86 measures affecting such diverse fields as training, infrastructures, research, social services and benefits, employment policies and industrial relations. These measures include the following:

Fostering investment in research and development

In order to reach a ratio of investment in RDI to GDP that is similar to the EU average, the strategic agreement includes commitments involving public expenditure and incentives for private investment. It also sets out actions aimed at fostering technological innovation, such as facilitating the access of companies to technology, intensifying technology transfer through transfer networks and promoting a high-level 'pole' in technologically-advanced sectors through collaboration between the world of research, business and the public administration.

Improving transport infrastructures

The agreement includes provisions on improving workers' access to industrial estates through public transport and the construction of 500 kilometres of toll-free expressways. Another aim is to promote rail transport through several investments in the rail network and 'nodal' infrastructure at the port and airport of Barcelona, which are considered to be essential to the future development of the Catalan economy in the framework of its 'Euroregion'.

Better training

Commitments have been made for the creation of new centres for vocational training and teaching trades, and the coordination of the three existing subsystems, ie state-regulated training, vocational training and continuing training. Actions are also proposed to combat school failure, with special interventions in the most affected zones, new state schools and an improvement in the teaching of English and new technologies in schools.

Attracting new investments

The agreement sets out a number of actions aimed at attracting solid new investments, and also seeks to promote exports and the outreach of Catalan companies, paying special attention to small and medium-sized enterprises, which form a substantial part of the Catalan industrial fabric.

Strategic telecommunications plan

Among other points, the agreement aims to improve telecommunications infrastructures on industrial estates and promote the use of new technologies in both the public and private sectors.

Improving the electricity network

The accord proposes several actions for improving the capacity and quality of the electricity network, through an energy plan based on providing infrastructures and fostering renewable energies.

Active employment policies

The pact seeks to improve active employment policies, specifically by decentralising public interventions and providing the public employment services with sufficient funding to offer personalised attention to labour supply and demand. It is also desired to give special attention to the redeployment of people who lose their jobs due to the closure or relocation of companies.

Social services and benefits

Several measures are aimed at improving social services for people in a situation of dependence. A commitment is made to draw up a social inclusion plan, including supplements to minimum pensions and an increase in the 'social wage' that is currently managed by the regional government.

Fostering social dialogue

The strategic agreement provides for the creation of both a tripartite social dialogue structure and a bipartite structure involving the employers' organisations and trade unions, one of whose priority tasks will be to promote the improvement of collective bargaining. It is intended that the social dialogue should promote both flexibility and stability in industrial relations.

Workplace accidents

The accord highlights the importance of a government plan for occupational risk prevention, which should develop a system of indicators and records aimed at rationalising the resources and the administrative structure, and thus increasing the efficacy of preventive actions and reducing the currently high workplace accident rate.

Commentary

The Catalan strategic agreement covers a wide and ambitious range of commitments that pursue the dual aim of modernising the industrial fabric and increasing social cohesion. In view of its content, it is a far-reaching agreement that establishes a firm commitment by the signatory organisations to lay the basis for a new model of competitiveness that is sustainable and responsible.

The agreement is not a mere declaration of principles: each measure is accompanied by commitments on expenditure by the regional government. It is estimated that the strategic agreement will have a total budget of EUR 2,015 million until it comes to an end in late 2007 - a considerable sum for the treasury of the Catalan regional government. (Ramon Alós, QUIT-UAB)