Spanish Unions and Government Reach Agreement on Unemployment Protection Reform but Employers Remain Critical

The Spanish government has reached an agreement with unions UGT and CCOO on a draft law to reform unemployment protection. This includes benefits and subsidies. The proposed reform aims to increase the number of protected groups, simplify access to subsidies, and make unemployment benefits compatible with part-time work. Additionally, the government commits to designing a plan to combat long-term unemployment, particularly among those over 52 years of age.

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. 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.

Despite these challenges, the draft bill is now being processed in Congress with the goal of approval to access European funds. Second vice president and Minister of Labor Yolanda Diaz emphasized that unemployment benefits are not just money but rather a right for workers.

The deadlines for processing this bill indicate that it may be impossible to meet the May 20th deadline set by the European Commission. Failing to meet this deadline could result in a partial disbursement of European funds. However, the government has another six months to approve