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Reform of the conventions

The superiority of sectoral bargaining is the most rational solution when small businesses abound

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Reform of the conventions

Little by little, economic team of Pedro Sánchez is defining his initiatives in narrow margin that allow his 84 deputies in Congress. The Minister of Labour, Magdalena Valerio, yesterday announced intention of government to regain power of sectoral agreements in collective bargaining, thus reversing current practice of giving primacy to business conventions on rest. This decision will presumably be made through bill that is already in Parliament and is very likely to be approved. Reform of labour reform can begin at this point if it achieves acquiescence of a parliamentary majority.

Previous Editorials

New Social Policy (18/06/2018)

Precarious salary (19/12/2017)

The pre-eminence of business agreements on Sectorials was one of instruments used by Government of Rajoy, within framework of labour reform of 2012, to promote a wage devaluation, which is, in short, backbone economic policy Deployed by PP against recession. The results of this policy are known: great job creation, but of poor quality, with an excessive turnover and real wages downward. The return to superiority of sectoral agreement, limited to salary aspects and working days ( enterprise agreement would deal with decisions on internal organization) restores a negotiating order more in line with business structure Spanish, where small and medium-sized enterprises abound and restores balance by granting more negotiating capacity to trade unions.

Until now, Government has correctly identified lines of change in labour laws and is squeezing out few parliamentary options available to it. Much progress will be made in reform reform if superiority of sectoral agreement is concretised, virtuality of a convention is successfully defended until following is signed and an agreement is reached against subcontracting.

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