“More extra costs and nothing changes”

by time news

2023-11-06 11:45:23

Promotion of Work has demanded to bring the Government, employers and unions back to the table to modify the bases of the last labour reform, agreed upon by all parties. The Catalan employers’ association, which has never hidden its rejection of the norm that its confederal organization did support, CEOEhas presented this Monday a balance in which it considers that the standard designed by the Ministry of Yolanda Diaz It has only been limited to covering up temporary employment statistics, without improving the stability of workers.

“Our intention is to make a reformulation in a consensual manner in terms of hiring”, declared the director of Labor for the Promotion of Work, Javier Ibars, at a press conference. The business representative has stated that the new contracting rules established in the regulation “have harmed companies, have generated extra costs and have not changed anything else.”

The labor reform agreed upon between the Executive (currently in office and in the process of re-editing its coalition for four more years), the CEOE and the unions CCOO y UGT Next month it will be two years since its approval. Since then, it has managed to reduce temporary employment in the private sector since 26,4% existing in 2019, before covid, until the current 14,2%. And do it by increasing the number of indefinite contracts signed, both full-time, part-time or discontinuous permanent contracts.

“Statistical artifice”

The Catalan employers consider that this decrease in casualties is a “statistical artifice”, which has had no real impact on the lives of workers. The data shows that in 2019 a total of 1.3 million indefinite contracts were signed throughout the year, compared to 2.9 million full-time indefinite contracts signed during 2022 (first year of the reform). This figure of 2.9 million contracts does not take into account the 1.7 million permanent part-time contracts signed, nor the 2.3 million permanent discontinuous contracts signed.

The entity chaired by Josep Sánchez Book -very critical of Yolanda Díaz’s proposals such as reducing the working day to 37.5 hours or perpetuating taxes on banks and energy companies, among others- has based a large part of his speech on a report from the temporary employment company ( ETT) Randstad.

According to him, more indefinite contracts are signed, because they last less. That is to say, despite being indefinite, many companies already consider it with an expiration date in mind and the only difference with the temporary contract is that now they must provide more money to pay greater compensation to the employee. According to Randstad, seven out of 10 contracts signed do not last more than a year, compared to four out of 10 before the reform.

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Another fact that Randstad highlights is the increase in failed trial periods. That is to say, companies, faced with fewer possibilities of using temporary formulas, are more likely to dispense with those new employees who do not convince them during their first days or weeks. By terminating the contract during a trial period (this cannot exceed a maximum of six months), the company does not have to pay compensation and can do so without just cause.

Randstad highlights that the extinctions in trial period They have multiplied by 11, although in absolute terms they represent a small percentage. For example, this past August a total of 608,769 indefinite contracts were signed and companies executed 56,510 terminations due to failure to pass the trial period. A ratio of 9.2%. In August 2021, when this resource had not yet been triggered, there were 5,991 terminations, compared to 118,985 signed indefinite contracts, a ratio of 5%.

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