Government, unions reach agreement on unemployment protection reform without CEOE: “It’s a significant step”

New Spanish Reform Proposal to Boost Employment and Social Protection: Government and Unions Agree on Draft Law to Simplify Access and Increase Support

In an effort to reform unemployment protection in Spain, the government has reached an agreement with the unions UGT and CCOO on a draft law. This proposal will affect both benefits and subsidies collected when the benefit is exhausted or if one is not entitled to it. The draft law will now be processed in the Congress of Deputies with the objective of being approved promptly, allowing Spain to access the fourth payment of European funds.

The reform aims to protect a wider range of individuals and increase the level of support provided. This includes simplifying access to subsidies and making benefits compatible with employment, encouraging job seekers to re-enter the workforce. The government is committed to fighting long-term unemployment, especially affecting those over 52 years of age.

While negotiations with employers’ associations were unsuccessful, Yolanda Díaz, second vice president and Minister of Labor, clarified that this reform is not about mere money but rather ensuring workers’ rights. She emphasized that this change is aimed at benefiting workers, particularly women who were disadvantaged under previous regulations. Despite not securing support from CEOE and Cepyme, they remain hopeful for a tripartite agreement.

Employers’ associations have expressed their dissatisfaction with the lack of negotiation and presentation of an economic report accompanying the reform. The absence of an economic memory in the proposal raises concerns about its impact amidst the extension of General State Budgets.

After initial rejection by Congress in January, revisions were made to maintain a Social Security premium of 125% for subsidies for individuals over 52 years old. The government is working towards ensuring this norm is approved in Congress as soon as possible to access European funds while also meeting parliamentary processing deadlines before May 20th. Failing to meet this deadline could jeopardize Spain’s access to the fourth payment of European funds.

In summary, while some aspects may raise concerns among certain groups, this reform aims

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