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At the end of January 1997, the Prime Minister ended the practice of issuing pay guidelines to France's nationalised companies.

Following parliamentary controversy, a law clamping down on illegal and undeclared "clandestine" employment was adopted in February 1997.

Following negotiations with the Education Minister, 3,300 unemployed supply teachers won the right in late January 1997 to be temporarily reinstated in their jobs.

At the end of 1996, the major trade unions and employers' associations signed the Second National Agreement on Continuing Training (II Acuerdo Nacional de Formación Continua), which was later endorsed by a tripartite agreement between these organisations and the Government. The new agreements build

On 31 January 1997, the Second National Agreement on Temporary Employment Agencies was signed. This is the second agreement reached in this sector since the activity of temporary employment agencies (TEAs) in Spain was approved in 1994. It will remain in force until 31 December 1999.

Industrial action has accompanied trade unions' pay demands in Spain's public administration since late 1996, and the threat of further action has been made if negotiations are not started immediately.

February 1997 saw a major strike in Spain's road transport sector. The dispute was well supported, mainly in the north of the country, but was called off without winning many concessions from the Government.

Employers and unions want to reduce the amount of temporary recruitment and the number of types of employment contract. They also want to increase their freedom to negotiate labour market issues through collective bargaining. These are the key issues in the current debate over a new round of labour