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Spain — Employers Confederation wishes to revive 3 year temporary contracts

09 September 2009

The Confederation of Spanish Employers' Organisation (CEOE) has presented a new competiveness plan to the Minister for Industry, Miguel Sebastian, El Periodico reports.

The concept is to make the Spanish temporary employment sector, especially in industry, more flexible in terms of contract duration and enable Spanish firms to better adapt to economic cycles.
In effect, CEOE wishes to revive a form of temporary employment contract, which came into operation in 1984 but was then abolished in the 1990's.

The car industry, equally represented by CEOE, would like to go even further and have temporary employment contracts which last for the life cycle of a product. This would require temporary employment contracts to last for up to five years.

CEOE would also like to increase the bonus part of temporary employees' pay in industry from currently 30% to 50%.

CEOE points out that out of the 1.5 million job losses over the last two years, 1.4 million were due to the fact that temporary employment contracts had been discontinued. However, CEOE sees temporary employment as an important way to revive Spanish industry.

The Unions have reacted badly to the proposals. Frederic Monelli of Union UGT said, "they are spinning the same story again: Cheaper labour costs and they are quoting old arguments. The real answer to the problem is an increase in productivity."



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