Ground-breaking new law on subcontracting in construction sector

As a result of an agreement between the government and the social partners, a new law on subcontracting in the construction sector has been approved. The text is part of the national strategy for addressing occupational accidents, which remain a major problem in the labour market. The new law aims to create measures to promote risk prevention in small companies.

Provisions of new law

The ground-breaking law on subcontracting in the construction sector focuses on a sector that accounts for 12% of the country’s gross domestic product (GDP) and employs 2.6 million workers (13% of the country’s active population). The law establishes a series of guarantees aimed at minimising health and safety risks to workers resulting from inadequate safety measures.

This law falls within the framework of the Spanish strategy addressing occupational accidents, which are a key problem for the country’s labour market. On an annual basis, almost 1,000 fatal accidents are recorded, while about one million non-fatal accidents occur. The new law is the result of an agreement between the government and the most representative social partners, including the Trade Union Confederation of Workers’ Commissions (Confederación Sindical de Comisiones Obreras, CC.OO), the General Workers’ Confederation (Unión General de Trabajadores, UGT), and the Spanish Confederation of Employers’ Organisations (Confederación Española de Organizaciones Empresariales, CEOE).

The new law includes a number of important provisions.

• At least 30% of the workforce of subcontracted companies must be on open-ended contracts within three years, by 2010: 10% during the first 18 months of the period, then 20% during the second 18 months. This measure aims to reduce the temporary employment rate in the sector, currently at 70%.

• Successive subcontracting of companies (subcontracted companies themselves subcontracting work) should be restricted to a single level for manpower-intensive activities and up to three levels for specialised jobs.

• A subcontracting register is to be kept on each site, stating the number of contractors operating on that site. The register should be available for consultation by labour inspectors, site management and trade unions.

• Preventive and regulatory measures will be introduced, such as strict criteria for the training of workers who face occupational risks. Companies will be required to accredit their workers with a certificate or book in which this training is recorded.

Social dialogue on health and safety at work

Health and safety at work has, in recent years, been the subject of continuous, intensive dialogue and bargaining. Major agreements have been signed in order to improve accident-prevention measures in companies, to detect occupational illnesses (one of the unresolved problems of workplace health and safety in Spain) and to raise awareness of them..

Two agreements have been signed by the most representative trade unions and employer organisations and the government. The first agreement reforms the regulations on health and safety services, while the second agreement defines a new list of occupational illnesses and the procedures for declaring them. Furthermore, an agreement has been reached on updating the social contribution rates for occupational accidents and illnesses.

The Spanish Strategy on Health and Safety at Work, established for the period 2007–2011, and itself the result of social dialogue, aims to reduce the number of occupational accidents in Spain to the average levels of the European Union (ES0612029I). The aim of this strategy is to establish the general framework for occupational risk prevention and health and safety measures carried out by all the relevant actors.

Commentary

The collective agreement for the construction sector is currently being negotiated. One of the main points of conflict between trade unions and employers is the type of contract that will ensure the employment stability required by the new subcontracting law in the sector. However, both parties are aware that the renewal of the agreement is more important than on other occasions, because it will make a decisive contribution to the implementation of the law on subcontracting. They are therefore confident that an agreement will be reached before the summer of 2007, provided that the proceedings run smoothly and no unforeseen circumstances emerge.

Emma Cervino, CIREM Foundation