Observation (CEACR) - adopted 2010, published 100th ILC session (2011)

Employment Policy Convention, 1964 (No. 122) - Spain (Ratification: 1970)

Articles 1 and 2 of the Convention. Measures to mitigate the impact of the crisis. The Committee notes the detailed information supplied by the Government in the report received for the period ending in June 2010. The Government states that the most serious consequence of the economic crisis was large-scale job destruction with the attendant increase in unemployment. The year 2009 saw the destruction of nearly 1,400,000 jobs, in particular affecting young and adult male workers in the construction sector and to a lesser extent in industry. More than 73 per cent of the jobs destroyed were held by temporary workers. By the end of 2009, the unemployment rate had reached 18.1 per cent of the active population (more than 4,000,000 persons), the highest since 1998. The Government provides information on various packages of measures to cope with the crisis. In November 2008, the Spanish Plan to Stimulate the Economy and Employment (“Plan E”) was adopted and included initiatives such as tax breaks and easier access to credit for enterprises. Plan E also included a programme to modernize the economy and foster medium- and long-term sustainable economic growth. Furthermore, in November 2008 a State Fund for Local Investment was established to maintain and create jobs, prevent exclusion from the labour market, set up cooperation agreements between the central Government and the municipalities and to build the institutional administrative capacity of the municipalities. In January 2010, a new State Fund for Local Investment was created to address the downturn in the labour market and achieve a more balanced economy. In addition, Act No. 27/2009 of 30 December was adopted setting out urgent measures to promote and maintain employment and protect the unemployed, providing also for measures to create jobs. The Committee requests the Government to provide information in its next report on the impact of the anti-crisis packages in terms of creating productive and lasting employment.

In its previous comments, the Committee referred to Act No. 43/2006 of 24 December to improve growth and employment, which sought to promote job stability. The Government states in its report that the system of incentives set out in the Act caused a drop in temporary employment from 2006 to 2009. Because of the crisis, the percentage of indefinite contracts has now reverted to the figures prevailing prior to the 2006 reform. In its General Survey of 2010 concerning employment instruments, the Committee made the point that labour market reforms in Spain had resulted in significant growth in the use of non-regular contracts of employment associated with inferior social benefits and less employment security (General Survey of 2010, paragraph 575). The Committee understands in this connection that the labour reform launched by Act No. 35 of 17 September 2010 establishing urgent measures for labour market reform seeks to: (1) reduce labour market dualism by promoting the creation of stable and quality employment; (2) strengthen instruments for internal flexibility in the development of industrial relations and, in particular, implement measures to shorten the working day, reducing recourse to terminations and providing alternatives to temporary contracts; and (3) increase opportunities for the unemployed, focusing on young people in particular. The Committee requests the Government to indicate in its next report the manner in which the legislative measures in force have contained job instability and reduced labour market dualism.

Article 3. Participation of the social partners. The Government recalls that in July 2008 a new Social Dialogue Declaration was signed with the social partners, the aim of which was to boost the economy and further social progress by modernizing the labour market. In February 2010 the Government submitted to the Social Dialogue Committee a proposal on labour market measures for discussion between the social partners. It furthermore announced its intention of concluding these negotiations with a tripartite agreement between the employers’ organizations and the unions that would pave the way to a modern and functional labour market consonant with the development of a sustainable economy. According to comments made in September 2008 by the Trade Union Confederation of Workers’ Commissions (CC.OO.), the production model is based on low productivity work that is highly intensive in cheap labour with little demand for qualifications, and it is proving unsound in the short term. In its General Survey of 2010, the Committee also pointed out that social dialogue is essential in normal times and becomes even more so in times of crisis. The employment instruments require member States to promote and engage in genuine tripartite consultations (General Survey of 2010, paragraph 794). The Committee requests the Government to indicate in its next report the manner in which the social partners have taken part in devising, implementing and evaluating employment policies to counter the negative effects of the crisis.

Integrated labour market policies. The Government states that it grants subsidies to the Autonomous Communities to develop their Comprehensive Employment Plans, which are financed out of the budget of the Public Employment Service. The Comprehensive Employment Plans should allow significant improvements in terms of activity and occupation in the labour markets of the Autonomous Communities and, through actions and measures to promote employment, should narrow the gaps between the Communities and the national average. Comprehensive Employment Plans have been carried out in the Canary Islands, Castilla La Mancha, Extremadura and Galicia, and a special employment plan has been implemented for the bay of Cádiz. In 2009, the highest employment rates were in Madrid (55.7 per cent) and Navarra (54 per cent), and the lowest in Extremadura (42.8 per cent) and Ceuta and Melilla (43.2 per cent). The Autonomous Communities with the highest unemployment rates are the Canary Islands (26.2 per cent) and Andalucía (25.4 per cent), and those with the lowest are Navarra (10.9 per cent) and the Basque country (11 per cent). The Committee invites the Government to include information on the measures taken to reduce regional disparities so as to attain a better balance in the labour market.

Long-term unemployment. The Government states that in 2008 long‑term unemployment stood at over 21 per cent and in 2009 rose to 28.4 per cent. The Government indicates that as a group affected by the most negative consequences of the current economic situation, the long-term unemployed are targeted for priority action under employment policies. In 2009, the number of long-term unemployed stood at 1,181,700, an increase of 114 per cent (629,600 new jobless) over 2008. Specific measures are being adopted for this group through the development of vocational training and retraining programmes and incentives to offer stable employment in the form of subsidies for employers’ social security contributions. The Committee invites the Government to include in its next report information on the impact of the measures taken to enable the long-term unemployed to secure stable jobs.

Youth employment. The Government states that young people have seen a considerable decline in their position in the labour market, with a significant drop in their employment level and a notable increase in their unemployment rates. Youth employment posted a significant decline in 2008, falling 23.9 per cent (433,000 unemployed young people) as compared to 2008. At the same time, unemployment rose by 41.9 per cent (250,000 new unemployed). As a result of these trends the number of young persons in employment stood at around 1,400,000 and the number of those unemployed, at 841,500. The Committee notes that in order to encourage the employment of young people, Act No. 27/2009 of 30 December on urgent measures to promote and maintain employment and protect the unemployed, provides for an evaluation of the current system of hiring subsidies with a view to making young people of 16 to 30 years of age with special employability problems a priority target group for the new subsidies. The Committee asks the Government to include information on the measures set forth in Act No. 27/2009 to improve the quality of employment for young people with little training. It also invites the Government to send information on other measures taken to afford young graduates the opportunity of finding lasting employment in which they can use their training and skills.

Education and vocational training policies. The Committee notes the CC.OO.’s remarks that there has been no drop in the school failure rate and no suitable measures to provide students with guidance on vocational training or to improve the education system. The Government states that Plan E included a series of initiatives for education and vocational training. As regards vocational training, a roadmap was approved to promote and improve vocational training through measures to accelerate reform and increase the number of persons with qualifications. The aim is to set up a system that accommodates the needs of students, workers and employers, improve the social image of vocational training and put Spain on a par with the other European countries in terms of student numbers in vocational training. The Committee further notes that the Sustainable Economy Act of November 2009 has a chapter on vocational training. Its four main objectives are: match training with the needs of the economy, broaden the scope of the training on offer, integrate the various vocational training curricula into the education system and set up cooperation between the public education system and the social partners in designing and carrying out training initiatives. The Committee invites the Government to continue to provide information on the measures taken to improve qualification standards and coordinate education and training policies with potential employment opportunities.