The government reached an agreement with Türkiye PNV to extend in 2024 the extended aid contract for industries focused on production. This development was disclosed by the Basque group in a statement issued on a Wednesday morning. The arrangement carries a fixed expiration date set for December 31, and, alongside talks about partial retirement reforms, both employers and unions have pressed for renewing this mechanism since the government first introduced it.
Participation Minister Apple Saiz signaled last week in the ministerial talks with the top representatives of social actors that renewal of the program would be examined. By the final council meeting of the year, the extension of the aid agreement appeared likely to receive official approval.
Thus named agreement refers to a specific contractual relationship that allows a senior employee, nearing retirement, to reduce work hours while beginning to draw part of the pension. In parallel, the company hires a younger worker to take over the responsibilities and hours the senior ceases to perform. When the senior retires completely, the company is obligated to retain the new employee on a full-time, permanent basis.
These contracts are restricted to the manufacturing sector and to roles that involve physically demanding tasks. A senior employee seeking access to this partial retirement pathway must demonstrate 33 years of contributions to the company and a minimum of six years of service.
Officials described the aid agreement for the industrial sector as a tool for staff rejuvenation and youth training. The policy was publicly framed as a step toward refreshing the workforce while maintaining industrial productivity, with a statement from the party involved emphasizing the goal of injecting energy and modernization into the sector.
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The most recent pension reform pursued by the ministry head before Saiz, José Luis Escriva, sought to curb the use of partial retirement by discouraging the practice and reinforcing the traditional progression to full retirement. Escriva argued for keeping the legal retirement age aligned with longer career paths and for reducing incentives that favored extended partial retirement arrangements.
In the subsequent legislature, the successor decided not to rescind the partial retirement option entirely but to extend the contract period by another year while awaiting a broader discussion about the exact conditions governing partial retirement during the current term. This shift reflected a balancing act between maintaining workforce adaptability and addressing concerns about long-term pension sustainability.