The Labor Reform of 2012

Has spoken, is speaking, and they will talk a lot about the new Labour Reform of 2012. None of which have been approved in this country has been free of debates and controversies. Rafael Morales-Arce, Professor of Economics at the UNED, and does a very thorough analysis on this new reform, and gives his personal rating, which, to put it another way, give one of lime and another of sand both of the positions against as in favor that have been manifesting between the various political groups, pressure groups (unions and employers), the major means of communication, which, more than we would like, the information they offer is unbiased and interested.

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Source: Informational Blog from the Campus of the UNED. By Rafael Morales-Arce.

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There were many reasons that they recommended the drafting of a standard that established a framework of labor relations that is comparable to what is usual in countries with which Spain is competing. The first of them, given the situation of our economy as well as by the indications of the community authorities, who are trying to preserve the balance in the public finances, as are the guarantees that the current regulation is not an obstacle to the social and economic development.
But also, a number of reasons that have their origin in the high volume of unemployment in Spain, that amounts to almost 5.3 million people, 23% of the active population, with the particularity that affects half of the young spaniards who wish to join the market. The high rate of temporality, of the order of 25% of the total contracts, the highest in the European Union; the fall of membership in the public Social Security system, with more than 2.5 million people in the past four years and with a significant increase in the cost of unemployment benefits, which reached 2.584 million euros/month in December 2011, more than 101% compared with the same month of 2007.
It is evident that the norms approved from the start of the crisis had a limited contribution to the improvement of the employment situation, and that now it has been necessary to adjust, both for reasons of effectiveness and to overcome the inability of the social partners to sign agreements on specific matters that have been included in the Decree-Law, with the exception of the II Agreement on the remuneration of wage in 2012-2014, in which it has agreed upon the application of moderate increases in this period. Therefore, the Executive has not had more remedy than to use the legitimacy that corresponds to the establishment of the appropriate framework for labour relations, even though, as is predictable, the set of measures that will generate satisfaction in a few and reservations in other, something that has been revealed before, even, that he knew the exact text of that.

OBJECTIVES THAT ARE INTENDED TO

In the act of presentation of the agreement, insisted on the objectives that are intended, in particular, to the reduction, in the short term, the process of job destruction that it becomes parallel to the evolution of the economic crisis, laying the foundations for the generation of quality employment, negating the duality, that exists today in the job market between those who have or do not have a job.
But also, in the implementation of effective mechanisms of internal flexibility in the company, flexibility that should result in creating and maintaining employment through collective bargaining processes that bring the solution to the aspirations both of those as workers. In particular, providing new opportunities to people unemployed, both young people and those who long ago ceased in their occupation, revitalizing the individual right to receive training that promotes employability.
In particular, fostering the support to self-employed workers and SMES, which are those that at this juncture, with more than 95% of the market share, have higher possibilities of creation of employment.
Equally, and given the magnitude of the unemployment benefits, strengthen the mechanism of control and fraud prevention, as well as to combat the high level of absenteeism unjustified, that reaches levels of very high and affects both the cost of the benefits as the emergence of the comparative injury to the generality of the workers, to comply reasonably with its obligations.

THE MEASURES OF GREATEST INTEREST

  • LABOR INTERMEDIATION

The process of job search is, at least theoretically, brokered by both the State Public Employment Service and by the Temporary Work agencies (ETTs). The first of them, who has the charge of the public registration of offers and demands of employment – transferred to the corresponding organ of the Autonomous Communities – as well as the recognition and allocation of financial benefits by unemployment, which constitute their core activity. But the dismantling of the reconciliation process of demands / offers at the national level that remained until the early eighties, led the management of the placement should remain circumscribed to the area of the town or province. Therefore, the main activity of the state service had been limited to performance management, being dissociated from what is considered fundamental in its activity, the public management of placements. It has been diluted, also, the initial responsibility it had in the activities of professional orientation and labor, necessary to adjust the requirements of the jobs that are offered with the skills essential for those who have to discharge their duties.
The ETTs came to star in the private management of the latter, although with a substantial change. From now on they will be authorized to act as private agencies of placement, helping to reduce the duration of the period of unemployment and to improve the balance of demands / offers of employment, but in no case they can bill for their services to the workers.
  • PROFESSIONAL TRAINING

Vocational training is a fundamental tool to promote the employability and the Decree is confirmed as a right of the worker to ensure that technological changes pose which may happen to be in a situation of obsolescence. The worker with over a year of service with the company shall be entitled to a leave pay of twenty hours per year dedicated to training, permission that will be stated in a kind of history called “mind training” supporting the programmes in which he has participated throughout his active life, programs that may be offered by the companies as by the centres to be credited to such order.
On the other hand, reinforce the training contracts and the learning contracts that can be accessed until the age of 30 years, and that, as was the case in the past, they can be implemented within the company itself if it has the human means and necessary materials to do so. We should not forget that a good part of the technical progress of Spain in the sixties and seventies was the high quality of the so-called industrial vocational training, in charge then of the educational system, which had, in addition to the collaboration, as is now intended, of the companies themselves. Or the intensive training of professional or vocational training and accelerated by various private and public institutions that facilitated a proper training at the technical level then required.
For the cases in which companies carry out restructuring techniques, will be required of these the offering of training courses for the employees affected. During the development of the course, may be suspended the contract of work and maintained the right to collect the salary. But if you finished this, the worker does not adapt to the requirements of such a restructuring, you can be fired.
It should not be forgotten, on the other hand, the significant volume of public resources allocated to vocational training. In the last fiscal year is reached 3.014 million euros, which are financed by the social contributions of the employers and the workers – 1980 million; the State Public Employment Service – 934-million – and the European Social Fund, with the rest. And benefiting certain institutions, at the state level or territorial, but we have the assurance that your final destination is polarize really in training activities that favour, in a strict sense, the employability of workers.
  • STABILITY IN EMPLOYMENT

The objective is the promotion of the indefinite contract, in particular, for young people, those most affected by the unemployment situation. To this end it promotes an “indefinite contract to support entrepreneurs” to subscribe for SMES and Self – employed- with less than 50 workers – with a trial period of up to 1 year.
To encourage this practice, the employer that hires a worker on unemployment can be deducted for tax purposes up to 50% of the benefit that would come to perceive during 1 year. The worker, for their part, may perceive, along with his salary, 25% of the unemployment benefit during the same period.
On the other hand, to stimulate the hiring of unemployed young people between 16-30 years, with special difficulties of labour insertion, is set a bonus on the fee of Social Security of up to € 3,600 for 3 years, increasing the bonus according to increase the seniority of the worker (of 1,000; 1,100 and 1,200 euros, respectively) as well as 100 additional euros in the case of women in sectors where they are underrepresented.
For the case of the long-term unemployed, older than 45 years of age, who are hired indefinitely, the bonus is set to rise to 4,500 euros, with increases of € 1,300 for each year up to the 3, which would raise up to € 1,500 additional for the case of women.
To prevent abuse of the temporary hiring unjustified, as of December 31 of this year, recovers the prohibition to chain temporary contracts with duration of more than 24 months.
A figure that is power is the part time contract, which would allow to reconcile the study with the work or balance work and family life, contract that will allow to perform overtime, ease of great utility in certain sectors of economic life.
And, finally, it regulates telework, figure today widespread in the countries with an advanced framework in labour relations, which will be developed in terms of salary equivalent to those who performed it in person, retaining the right to be informed of all vacancies that are advertised to the rest of the employees.
  • INTERNAL FLEXIBILITY IN THE COMPANY

The Decree is, on the other hand, to correct the duality of the market that allowed an excess of protection to a few workers in front of others, thereby facilitating the adaptation of working conditions to the reality of the company.
To do this, it eliminates the system of classification of the workers by professional category, to replace it by another so-called “professional groups” that favor, according to the regulations, internal mobility, and extend the scope of their knowledge. Let’s hope that the development of the Decree, explaining clearly the difference between one and another classification, which until now, was focused on four major categories: technical, administrative, junior and professionals of the craft, breaking down each one of them according to the characteristics of each firm.
Also, it encourages geographical mobility, with the establishment of objective conditions for the choice of workers who have less family burdens.
  • WORKING CONDITIONS AND COLLECTIVE BARGAINING

The entrepreneurs will have facilities to simplify the procedures and remove the administrative approval for the following: modifications of the work day, the hours and the performance evaluation system; reduce or suspend the contract of employment as an adjustment mechanism in situations of decreased demand for their products or services. This is a controversial issue that, if not there is a suitable climate in the relations between company and workers, will pose some problems.
The companies that pass through situations of economic adversity, may bonificarse up to 50% of business fees to the Social Security of the workers who are affected by the suspension or reduction of working hours, with a maximum duration of 240 days and conditioned for 1 year, to employment stability.
In the event that the company extinguiese finally the contracts, the workers would not see minorados their right to unemployment benefit, since it establishes the restoration of the same up to a maximum term of 180 days.
In relation to collective bargaining, enter the priority of company agreements on the higher level, provided that the company and workers so agree. For companies in difficulties that chose a higher level agreement, is authorized to negotiate the exclusion of the same. In case of disagreement, and if it be agreed to in its collective bargaining agreement, will take well to the solution of extra-judicial conflict or the formula of the arbitration. Ultimately, there is the possibility of raising the National Consultative Commission of Collective Agreements or their equivalent at the level of Autonomous Community, who would designate one arbitrator, who shall decide within a period not exceeding 25 days.
Finally, and to encourage the negotiation and implementation of agreements, the parties may negotiate a new agreement within a maximum period of 2 years, so that, from this date, will exhaust the term of the previous agreement, thereby eliminating the so-called “ultra-activity” up to now permitted. Is this a matter of great controversy with the social partners.
  • TERMINATION OF THE LABOUR RELATION

The extinction of the labor relationship for causes business not require, from now on, the previous administrative authorization, which approves the existing practice in other countries.
The Decree, on the other hand, admits the possibility that agencies, and entities of the public sector invoked causes technological, economic, organisational or production to start employment regulation records. It makes it easier to your optimum size and the desirability of conforming to frameworks budget more limited than that which had up to now.
On the other hand, it generalizes the compensation for the extinction of the new contracts of indefinite working with 33 days per year worked, up to a maximum of 24 monthly wages, respecting the acquired rights of those people who, until now, they had him in 45 days with 42 monthly payments of cap. Such a compensation of 33 days as agreed in the reform of 1997, with the support of the social partners.
In the case of dismissal for objective reasons, the termination of an indefinite contract will have a compensation of 20 days per year worked, with a maximum of 12 monthly payments. The Wage Guarantee Fund will be in charge of the same in the case of SMES.
Finally, and for companies from laying off more than 100 workers, it is compulsory to articulate a plan of the relocation designed for a period of at least 6 months.
  • THE FIGHT AGAINST FRAUD

The underground economy and fraud in unemployment benefits have a special purpose in this statement. To do this, you will require the strict compliance of the law through a specific plan of the work Inspection and Social Security, which will oversee both the labour regulations as relating to contributions and social benefits.
On the other hand, and through agreements with Public Administrations, will encourage the unemployed to perceive the benefits to be able to perform services of general interest in the benefit of the community. This will make it easier, add us, the link of the worker with a task active, in particular, those that are polarized in the tasks of humanitarian nature.
It will stimulate the fight against the absenteeism unjustified, one of the scourges of the reality of our job market. Absenteeism, conceptualized at the individual level of the worker, not the template, it may be cause for dismissal. To do this, you will count with the collaboration of the health care system and of the mutual employer of accidents at work, who will devote, in addition, a special attention to the assessment of the temporary disability.
Finally, it allows the compounding up to 100% of the unemployment benefit for young people up to 30 years and women up to 35, who start a professional activity as self-employed workers.
  • COMPENSATION SPECIAL

Taking advantage of the situation created by the compensation paid to officers for termination that have been observed in financial institutions subject to restructuring processes and that have received public aid, limited amounts in accordance with the recommendations of the European Union. May not exceed the lesser of the following: two times the maximum of those included in the Decree Law of reform of the financial system or the double of the fixed remuneration stipulated. In the event that the manager in question has been the subject of a proceedings under the Law of Discipline and Intervention of Credit Institutions, the eesc will have the condition of discipline, without the right to perceive of any compensation.
In the case of the senior managers of entities of the state public sector, the extinction of the commercial contracts or high management, for the withdrawal of the employer, or entrepreneur, without the need of reflecting any cause that justifies it, does not accrue any compensation that exceed 7 days per year of service, annual compensation in cash, with a maximum of 6 monthly payments.

THE VALUATION OF INSTITUTIONS AND MEDIA

A reform of this nature has inevitably polarize dissenting opinions, especially on matters as sensitive as the dismissal or collective bargaining. In a few cases, with positions clearly favorable. In the other, with a front of opposition, both for ideological reasons as for not picking up all that would be desirable for the settings to contribute to the rationalization of the labour market. Without forgetting, that a Decree Act with more than sixty pages, to reform a score of above provisions, if you have not read carefully or do not know the internal aspects of the labour relations, can lead to the issuance of ratings without the rigor due.
The German Government, the first that has expressed its opinion on the reform qualifies as exemplary and courageous. The spokesperson of the European Union, for its part, appreciates that it is a priority of the Government, walk in the right direction and promotes flexibility in the labour market.
The Organization for Economic Cooperation and Development (OECD) estimates that will allow to reduce the duality of the labour market, make it more dynamic clearly to promote the creation of employment.
From the academic perspective is already the first contradiction. One position argues that the reform raised has a transcendent character in this moment, which is complemented by another which argues that the positive effects (preference for company-level Collective Agreement compared to the higher level, the end of the ultra-activity; new occupational classification based on groups not in categories; backspace in the administrative intervention in the consideration of records of employment regulation and rationalization of the measures of recruitment) outweigh the negatives (such as the prohibition on the chaining of temporary contracts, with generation of difficulties of interpretation; reduction of compensation for dismissals; redefinition of the role of temporary agency work, etc). Another perspective, stresses that reform disrupts the balance of labour relations in favour of employers; that should have been considered as an adjustment to transitory, not permanent; it changes a score of above provisions, with what it represents to clarify the panorama and, finally, that does not eliminate the judicial control, only the administrative. Complete this line of thought with an assessment subject to the verification of the results obtained.
Economists, for their part, are equally divided. Some believe that it is the more serious since 1994 – the date in which they have watered down some aspects of the Workers ‘ Statute of 1980– and that deals with fundamental aspects, independently or because of pressure from the community environment. In this same line, your professional representation, considers that the reform is deep, courageous and successful. On the contrary, others consider that it is a reform with a somewhat; that the prohibition of the chain of contracts does no more than introduce rigidity in the labor relations, which, moreover, is intensified by keeping the judicial control in the discrepancies between entrepreneurs and workers, while noting as positive the improvement of the functional mobility and the adjustment in the compensation for dismissal. Won’t go very far, as they say, although it is considered as an important step to prepare the exit from the crisis.
In the position of the political parties is where we noticed the largest discrepancies. While some consider it to be well-targeted and necessary, although it will not create employment, estimates should be accompanied by a “shock plan” against the bulky volume of unemployment that we have today in Spain. Others, on the contrary, estimate that it encourages the dismissal, not employment; that, as of now, all the layoffs will be considered as “objectives”; that the reduction of compensation for dismissal is “clearly unconstitutional”; and, finally, shows their reluctance in front of the indefinite contract for entrepreneurs, which will make it possible for the term of one year to be dismissed without any compensation. In a similar vein, another political formation he describes the reform as a wrong against the rights of the workers; it does not stimulate the exit from the crisis and will create new employment, all of which, appeals to the mobilization of workers in order to neutralize its effects.
The media, for its part, also prosecuted in a different way. The polarized in the economic information, they estimate that the reform solves the problems of an absurd labour law and represents a historical position for the world of work. The mainstream press receive it with resignation and hope, highlighting the significant reduction of compensation and the details of the causes of the dismissal, opening the door to downs widespread of wages and salaries. Some points that, from now on, it should be complemented with incentives for the creation of jobs.
The foreign media, both european and american, they estimate that it is one of the more profound reforms since the transition to democracy, considering it a “key” for the draconian cuts they introduced, and which is polarized, as highlighted by other media, the reduction of the cost of the dismissal.

CRITICISMS OF THE SOCIAL PARTNERS

The business organizations of wider scope, the positively evaluated and essential in these times, especially, considering the recent II wage Agreement for 2012-2014. But to be successful, it is necessary that, from now on, to facilitate financing to the private sector of the economy, to generate confidence and to increase the volume of exports. Estimate, on the other hand, that the reform is not a win only for them to also win the workers and, ultimately, Spain. The organizations of self-employed, equally, the estimate will be targeted and that has been enacted by Decree-Law, which stimulates their effectiveness from this point.
For its part, the union organizations most representative have shown their radical opposition to this statement, regretting not having been consulted before signing it into law. They believe that it is the reform “written” by the entrepreneurs and one of the foundations of economic most accredited in the analysis of the problematic labour. Estimate that the authorities have acted as if Spain was a country intervened, in that there has been a “dismantling” of the Right to Work, and that will stimulate the confrontation taking advantage of the feeling of discomfort by any of the conflicts in business today are living. Both these, as any political party, are studying the possibility of raising an appeal of unconstitutionality on some of the points most controversial.
In any case, the first working day of the entry into force of the rule, one and the other will be with the labour authorities to see first hand the detail of what has been solved, imagining that will be the time to suggest some adjustments that may be in the process of parliamentary review.

PERSONAL ASSESSMENT.

In general terms, the Decree-Law deepens and extends the content of the measures that had been enacted since the beginning of the crisis. And this always has a positive valuation. But, alongside this, we have to analyse in depth the implications that will have on legislation in force up to now, since, as has been said, it affects about twenty basic provisions that have been altered to a greater or lesser extent. In both does not create a legal body established, among the contributions to past and current, do not have an instrument clear and precise to facilitate its application in the business environment.
In any case, it should not be forgotten that:
  • The work factor, regardless of its legal regulation, is usually the consequence of the evolution of the economy. With two years ahead with a reduction in the growth of the national wealth, do not cherish well-founded hopes of net job creation in the short term, something you have assured the authorities at the time of your presentation.
  • For the avoidance of doubt, and contemplating this Decree-Law with a previous one concerning the budgetary framework, it is quite predictable that the rationalization of institutions and enterprises of the public sector, both state and territorial, with an occupation that is about 3.5 million people, will generate the output of workers today, employees with temporary contracts, which will have an impact on the current volume of unemployment.
  • Likewise, the financial reform, which builds up a surplus potential close to 20,000 people, will have an impact, also, on the volume, so that both the one and the other should be diluted at the time these outputs to not make more difficult the coexistence social.
  • In short, the reform by itself will not create net employment, at least in the short term. Will contribute to transform the structure of the market and moves it closer to the standard practices existing in the countries with which we compete. It will be very important when you reach a normal growth of the national wealth, at which time we will have a labour regulation is something closer to those.
  • In another order of things, and independently of processing the legislative, the Executive, in the very short term, to develop thoroughly the procedures of dismissal, suspension, or termination of contracts or reduction of hours. It will clarify properly the correct implementation of the standard.
  • In the case of layoffs in the sector of Public Administrations to those who do not have the status of official, is considered to be effective as contrast the budget shortfalls for three consecutive quarters in order to justify the origin of those. Previously, it would have been preferable to have proceeded, with methodology of budget zero-based, to analyze the restructuring objective of a set of more than 4,500 entities, so that application of the new rules will polarizaría, precisely, in those that are considered redundant or inefficient from the point of view of the public service.
  • It is considered positive that in the layoffs of workers of 50 years or more in companies with more than 500 workers, who benefited in the two previous years, is to be made to the Treasury an amount calculated in function of the benefits and allowances earned and the contributions made by the State Public Employment Service.
  • As a support measure to companies with fewer than 25 workers, in the case of collective dismissal, bankruptcy or termination goal, the Wage Guarantee Fund shall indemnify a compensation equivalent to 8 days per year of service, compensation shall not take place in the case of unfair dismissal.
  • It is estimated very positive the linkage of wages to the economic development of business and productivity. This exceeds the usual practice of tying the compensation to the expectations of inflation, with what it represents.
  • The most important aspect would be that the reform contributes to the incorporation to the market of those people who don’t have jobs, well they were young or long term unemployed. It would have been useful, as has been done in other countries, the consideration of the so-called “mini-jobs”, which have been used in some countries – such as Germany – to encourage transiently the growth of the occupation, and, of course, always with an adjustment in the work day to facilitate compatibility with a formative process that promotes their subsequent employment. Contracts “part-time” so accepted and widespread in Europe, still continue to be stimulated with the proper strength.
  • It appreciates the encouragement of the mobility functional and geographical, that even though it is contrary to the perception of Spanish employment development, you need to generalize it as another way for the approval of our market. Although this is facilitated by the provision of school facilities, housing, etc., that make it attractive change of location.
  • The reform maintains, for the moment, the duality of recruitment, both temporary – permanent and temporary – such as between the workers already hired before the reform or that are hired after. Let’s hope that in the medium term has not any discrimination for the consideration of the moment of entry to the market.
  • Also, you should avoid the generalization of dismissals in those cases in which the company, despite its difficulties, can overcome the situation through measures such as the temporary suspension of contracts; reduction in working hours or wages, and all of this in an environment of non-confrontation of interests between the parties. A new consideration of the role of the social partners would be critical in these situations, the good faith and the desire to return to situations of normalcy would ensure the survival of the company, avoiding the dismissal partial or total of its employees.
  • Obviously, the reduction of the cost of the unfair dismissal is considered an essential step. 45 days today with the cap of 42 monthly payments is not feasible in a market in which it competes with frames work well different. Have articulated at an intermediate level with the corresponding termination goal, it seems a measure consistent. The time and the effects produced will tell whether the measure, away from the that has been adopted, for example, in Portugal, with just 10 days of compensation, the results are acceptable by all.
  • The decrease of the “ultra-activity” of collective agreements is a measure that is welcome. If it favours the negotiation at company level, in particular, for the smallest, which constitute 95% of the census Spanish, will allow to adjust working conditions more closely to reality, and the evolution of the business activity.
  • It is considered a positive to have the reference in the Decree to the so-calledtelework” or “distance working”, a modality that is being imposed on some activities, and promoting the conciliation of work and family life. Its regulation shall be in writing and with recognition of similar rights to which they perform their activity in the classroom.
  • The new standard promotes the action of the companies of temporary work, which, from now on, will act as placement agencies, provided you can demonstrate to the State Public Employment Service, which have met the requirements for the performance of this activity and its services are free to workers. We believe that the fundamental activity of employment and placement should correspond exclusively to the State Public Employment Service and the counterpart in the territorial bodies, without prejudice to the collaboration that might be of ETTs and Placement Agencies.
  • We celebrate the impetus to the activities of vocational training,fundamental to neutralizing the negative effects of the acceleration of technology, which today is living, and that promote the employability of the worker. We have doubts about the effectiveness of the training actions that today are entrusted to the various entities. The large volume of resources devoted to this activity, more than 3,000 million euros in 2011, would require that the responsibility for these actions to be associated solely with the body responsible for the employment. In a way, as it was during the existence of the old SEAF-PPO: the State Public Employment Service, an entity that you could delegate and to prove to companies and institutions duly solvents – which had faculty, media, pedagogical and professional experience – and not devoting these resources to people who have exhausted unemployment benefits, who register with no interest in the programs, which have no other object than to control whether the beneficiary is performing some work; or programs called “supply and complementary actions”, which absorb over 60% of the total budget, delegating the promotion and supervision of the same institutions that have been used more as a source of funding as a means of contributing to the improvement of the training offer.
  • On the other hand, we welcome the promotion of recruitment for the learning and training, with a duration between 6 months and 3 years, for minors under the age of 30 years, in which should be allocated to training in the strict sense of the 75,85% and 85%, respectively, in each of the three years. Such authorization is considered transient as long as unemployment exceeds 15% of the active population. These contracts will generate a bonus of 100% of the quotas business-to-business Social Security for companies that have fewer than 250 employees and 75% for all remaining. Workers, for their part, will be exempt from the payment of the premium that corresponds to them.
  • It is considered very important to the promotion of the activities of relocation, that will help to alleviate the undesirable effects of the measures that are put in place. That six-month period in which the firms entitled to do so, perform activities of training, refinement, personalized service for the search of employment or professional orientation, are considered essential to facilitate the reintegration of the individual earnings in the labour market.
  • Remain pending, among other issues, the reform of the Social Security system, both to rationalize the economic viability future – something that the latest legislation, August 2011 – has been partially, and to modify the cost that represents a real tax on the work, which exceeds, also, has any european country. The overcoming of the method of calculation of the pension – has advanced the consideration of the whole of the working life, which is important – but it must be extended to the system of accumulation of input – sharing, capitalization or mixed – and to the settings of alternative institutions, such as Mutual funds, Insurance and Pension Plans, who do not have, precisely, not the proper tax treatment or appeal to polarize the savings to the business activities which now have so many financial difficulties.
  • And, of course, that with the calm and tranquility that it deserves, but without delay, we are challenged to define the framework of the economic model that Spain should lead to both the advantage of the potential that we have in some sub-sectors productive as to convert those that have become obsolete. We should not forget that the diversification and polarization on activities with high added value are essential to overcome errors from the more recent past. If after reforming the labor market does not manages to avoid a good part of the relocations whose final effect is to create jobs out of the country, if not accelerate investments in infrastructure, innovation, research and education; if we do not promote the improvement of our external balance and, as is logical, if the financial reform will not get the flow of credit to the private sector of the economy, we will have travelled a road that we will consolidate in the path of impoverishment that has been the case in recent years.
In short, a rule that has led to great expectations and want to be an appropriate step in the standardization of the Spanish system of labour relations, the need to penetrate the block of the countries that have been able to reform successfully issues as necessary for both our economic competitiveness and to the proper social life.
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Rafael Morales-Arce, is a Professor of Financial Economics at the Faculty of Economic Sciences, having served in the teaching profession for more than forty years, at different centers, national and foreign, especially, the Complutense university of Madrid, CEU – San Pablo, Navarra and the National Distance Education (UNED).
He shared his academic activity with his professional work, both in the public sector, in that he was the first Manager of the Employment Service of the Ministry of Labour, in 1976-79, as in the economic sectors and financial, ending his professional career in the latter as Deputy General Director of BBVA.
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Original article at: http://noticiascentros.blogspot.com/2012/02/la-reforma-laboral-de-2012.html

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