Labor Reform Debate: Gains in Employment Stability and Ongoing Improvements

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The review confirmed a measured improvement in employment quality alongside a positive assessment of the reform’s effects. In the Valencian Community, union leaders Ismail Saez of UGT and Manuel Garcia of CCOO, together with Salvador Navarro, the president of the regional employers association CEV, spoke about the gains observed since the new regulations came into force. The event took place on a Tuesday at Casa Mediterráneo, organized by the Economic and Social Committee of the Community (CES-CV) to examine the first year after the reform’s implementation, with Zulima Perez, the Director General of Social Dialogue Coordination, moderating.

The CES-CV president, Arturo León, noted that the reform significantly boosted employment stability in the autonomous region by increasing the share of indefinite contracts. The data show a notable shift: roughly half of new jobs are now permanent, a stark rise from recent years when only about 10% of new positions were permanent. There was also a clear improvement in overall employment figures. Specifically, unemployment fell by 4.7 percent across the autonomy, and by 5.2 percent in the Alicante province over the past year. Among groups historically more vulnerable to job insecurity, youth unemployment experienced an even larger drop, down by 15.42 percent.

Arturo León addresses the public throughout the day. HECTOR RESOURCES

According to the union representatives, Social Security data show 54,493 people employed in the region, including 23,342 in Alicante. León argued that these figures illustrate a shift in the employment paradigm, a sign that the reform is delivering tangible benefits.

Both unions and employers echoed this assessment, highlighting the agreed measures as a key driver of progress. Ana García, secretary general of CC OO, stressed that the reform has reduced turnover and increased stability, while unemployment benefits have decreased overall.

Salvador Navarro, head of the regional employers association, underscored that the stability granted by the agreement is essential for sustained economic growth. He pointed to the need for flexible internal mechanisms within firms to navigate challenges such as the energy crisis, emphasizing that a resilient production model supports higher income levels.

All parties acknowledged the concessions made to reach consensus, even though not everyone agrees with every aspect of the legislation. Ismael Saéz, the autonomy chief at UGT, criticized parts of the reform that expand the ability of companies to apply employment regulation files without prior authorization, and questioned the elimination of certain fees related to reductions in force.

On areas needing improvement, CC OO’s representative pledged to address involuntary part-time work, a practice that often leaves workers without full-time opportunities and disproportionately affects women, contributing to the gender gap. Navarro reaffirmed the push for a broader production model that raises incomes and called for tackling fraud and pockets of economic weakness that do not benefit society.

Although pension reform and minimum wage adjustments did not see unanimous support, the debate stayed constructive. The union leaders and the business group acknowledged the challenges of renewing the National Collective Bargaining Agreement, noting that the current political climate makes agreement unlikely in the near term.

10 keys to labor reform

The discussion during the event underscored the complexity of aligning diverse viewpoints. The leaders from labor and business circles emphasized the need to balance managerial flexibility with protections for workers. The reform’s long-term impact shows in greater job stability, better retention, and steadier income patterns for many families. The dialogue also highlighted ongoing efforts to modernize labor relations, reduce precarious employment, and support sectors hit hardest by economic fluctuations. The speakers pointed to the importance of ongoing monitoring and adjustments to ensure the reforms keep pace with changing market needs.

While some participants remain cautious about pensions and wage policy, the overall tone stressed collaboration. The goal is a resilient economy where workers enjoy stable employment and firms can adapt to shifting conditions without sacrificing fairness or opportunity. The conversation reflected a pragmatic approach: acknowledge progress, identify gaps, and continue refining policies that empower both employees and employers.

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