Breaking Barriers: Government and Unions Reach Agreement on Unemployment Reform in Spain

In a bid to reform unemployment protection in Spain, the Government has reached an agreement with unions UGT and CCOO on a draft law. The proposed reform aims to simplify access to subsidies, increase the number of protected groups, and make unemployment benefits compatible with part-time work.

However, the Ministry of Labor was unable to secure the support of CEOE and Cepyme for the proposed reform due to concerns about certain measures. The employers issued a joint statement expressing their dissatisfaction with the lack of negotiation and economic report accompanying the reform. They criticized the lack of a real agreement and accused the Government of a lack of transparency in the process.

Yolanda Diaz, second vice president and Minister of Labor, emphasized that unemployment benefits are a right for workers, not just money. She stressed that the Government is committed to designing a plan to combat long-term unemployment, particularly among those over 52 years of age. The reform has undergone changes, including maintaining the 125% Social Security premium for subsidies for older workers.

Despite efforts, there are concerns that meeting the May 20th deadline set by the European Commission may be impossible due to processing deadlines. Failing to meet this deadline could result in a partial disbursement of European funds. However, the Government will have another six months to approve the reform and receive the full amount of funds.

Overall, this reform aims to improve unemployment protection in Spain and make benefits more accessible to a broader range of individuals.