Social partners need to debate broader economic and social questions

In Spain, little debate has taken place over the broader issues of economic policy. Meanwhile, the major social partner organisations appear to be more focused on the traditional topics of social dialogue. The economic crisis and its widespread impact, however, point to the need for a shift in focus to fundamental elements underlying the country’s economy – including Spain’s economic model and government policies, as well as the role of social dialogue and the social partners.

Importance of social dialogue

In Spain, the social partners value the importance of social dialogue. Although they failed to sign an agreement on collective bargaining this year (see news article (in Spanish), 6 March 2009), the social partners have expressed their faith in the social dialogue process and its ability to negotiate at the various levels.

Despite disagreements, the country’s major trade unions and employer organisations appear to be satisfied with the outcome of social dialogue in recent years, as reflected in the Spanish contribution to the Eurofound report on Working conditions and social dialogue.

Areas for concern

However, one of the interviewees of the Eurofound report, Fernando Puig of the Trade Union Confederation of Workers’ Commissions (Confederación Sindical de Comisiones Obreras, CC.OO), raises a number of questions for concern. For instance, although the first collective agreements were ‘global’ in nature, some time later the process of negotiation has changed by becoming more diversified in specific areas. The representatives have therefore had to specialise in areas or sectors. Mr Puig outlines: ‘Those who take part in the collective bargaining process are never the same, allowing for more detail, knowledge and complexity in the negotiation process.’ He adds: ‘Agreements need longer time because of the great complexity.’

Spain’s economic model

Spain’s economic model seems to be polarised from the social dialogue process. The current model is based on a flexible economy with a low-wage and lower qualified temporary workforce, comprising a substantial proportion of migrant workers. Mr Puig highlights that: ‘It is necessary to change this model and start discussing areas such as innovation and learning.’ However, he claims that the trade unions consider that social dialogue ‘goes beyond these aspects’.

Social partners and politics

The above position has been frequently questioned. In an advanced democratic society, it is understood that the social partners should not replace political parties. Their nature and objectives are different, as is the legitimacy that comes from their representativeness.

Nonetheless, situations can arise where the social partners may be tempted to play a more direct role in politics. In Spain, the political debate seems to lack depth and efficacy, particularly among the various political parties. The disputes that arise tend to be more about political rather than economic issues, and mainly relating to specific facts or policy measures. Sometimes, the superficiality and dispersion of such debates are a cause for anxiety among the social actors.

Government debate

The government has made extensive use of economic policy in an active way through measures such as: public investment, tax relief, extensions of unemployment benefits, support for mortgage payments, guarantees and other measures such as those seeking to inject liquidity and engender economic modernisation. Such major public interventions, in turn, increased the public deficit. The actions of the government – which is led by the Spanish Socialist Workers’ Party (Partido Socialista Obrero Español, PSOE) – have been subject to much criticism from its main opponent, the Popular Party (Partido Popular, PP), but usually without the offering of practical alternatives. This opposition has also been played out through the media through debate and criticisms.

A factor that may contribute to this situation, and which relates to the social environment, is the nature of the PP itself. The party has two wings: one liberal and the other conservative populist. The second wing sometimes competes with the government in defence of popular measures. The other wing is backed by the interests of those that sometimes benefit from some of the economic measures adopted by the government.

The PSOE has also faced criticisms from parties other than the PP. For example, the Bank of Spain (Banco de España) and its governor, Miguel Angel Fernández Ordóñez, have put forward arguments (in Spanish) which are far more liberal than those of the Leader of the ruling PSOE party, Rodríguez Zapatero. Other institutions and individuals, especially in the business world, have also been critical of the government’s interventions, some of which they deem too active and costly.

Commentary

The social partners will inevitably have their own legitimate positions on the various issues of concern; however, there is also the potential for a possible convergence between the social partners. While the economic crisis is a major setback for Spain’s economy, it also raises questions over the sustainability of the country’s economic model. At the same time, the crisis also offers an opportunity for possible change in Spain’s system of productivity. This will inevitably entail job losses, but also the potential for new, stronger and more value-added activity. While the debate between the social partners will be focused on the usual issues, there is also a need for greater discussion and emphasis on other elements, such as the integral features and efficacy of the country’s economic model.

Esteban Villarejo, CIREM Foundation