Reforming Labour to Create Employment

02/07/2011

Juan Chozas: “It is easier to dismiss a worker that to lower his or her wage. That’s why the adjustment to the crisis has been done through employment and not by lowering wages or working hours”

“In Spain, eight out of ten collective bargaining agreements are made between business and trade union organisations, also linking businessmen and workers who do not belong to those organisations”

“The Spanish labour regulation model is devised for big companies while 80% of Spanish companies are SMEs”

“It is a paradox that before the many criticisms levered against a cheaper layoff, the main pillar of Act 35/2010 has been to make it cheaper due to economic reasons”

Joaquín Trigo: “In order to increase Spanish competitiveness we must be more productive, and this demands greater transparency and confidence in labour relations”

“The first reason why companies don’t grow is lack of confidence. The second, lack of information”

“A layoff provision is needed to favour hiring conditions”

Samuel Bentolila: “A labour reform is needed because this is the third time in the last 30 years that we have an unemployment rate close to 20%”

“The Spanish labour market has a huge volatility problem linking the employment volume to economic cycles”

“Institutional characteristics damaging the Spanish labour market are four. The first, duality, due to the gap between temporary and permanent contracts. The second, collective bargaining, where the fixing of wages is not linked to the economic cycle. The third, employees’ little training. And last but not least, unemployment benefits are not linked to active employment policies or to employee recruitment”

“The reform of collective bargaining should have been based on: favouring decentralisation and internal flexibility, limiting ultra-activity, improving coordination through a national pact, and avoiding wage indexation”

Francisco Cabrillo: “In Spain we have a highly decentralised expenditure, public health, etc. So, why do we have a centralised labour market regulation?”

“When there are regions that triple the unemployment rate of other regions, is having a homogeneous regulation sensible? We can make two criticisms to the idea of decentralising the labour market. Firstly, when there is competition regulation tends to be lower and secondly, the lack of market unity in Spain”

Francisco Marhuenda: “There’s no better road to prosperity than employment”

“The employment reform should generate credibility, stability and employment”