Spain – Agreement between government, employers and trade unions on labor market reform

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The Spanish government announced today that it has reached an agreement on labor market reform with employers and trade unions, a few days before the deadline set by Brussels.

“This is a historic agreement on the issue of social relations that allows the harmonization of the Spanish labor market with the European market”, according to the announcement of the Spanish Ministry of Labor, as broadcast by APE.

“This is a historic day for the workers of our country,” Podemos-based Labor Minister Yolanda Diath told reporters, who had made labor market reform a priority.

The content of the agreement was not made public, but it is known that the goal of the government of the socialist Pedro Sanchez was to reconsider the reform adopted in 2012 by the conservative government of Mariano Rajoy, which, according to its critics, had thrown uncertainty into a country holding the European record for the percentage of temporary contracts.

The agreement was reached with the two largest employers ‘organizations, CEOE and CEPYME (small and medium-sized enterprises) and with the two major trade unions, the Labor Committees (CCOO) and the General Workers’ Union (UGT).

The government of Pedro Sandeth and its social partners had started a battle with time, as the European Commission called for this reform in exchange for the great European recovery plan, of which Spain is one of the largest beneficiaries with 140 billion euros, and was waiting for it at the end of the year.

The bill that emerged from the negotiations is expected to be adopted on Tuesday during the last cabinet meeting of 2021.

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