Labor reform in the Valencian Community shows meaningful gains and ongoing challenges
The discussion centers on how the labor reform has begun to reshape employment quality and stability, with leaders from both unions and business associations weighing in on its first year of implementation. In the Valencian Community, Ismael Saez of the UGT and Ana Garcia of CC OO joined Salvador Navarro, president of the regional employers’ association CEV, in reflecting on the reform’s effects. The event, organized by the Economic and Social Committee of the Community (CES-CV), took place at Casa Mediterráneo and was moderated by Zulima Perez, Director General for Social Dialogue Coordination. The day’s aim was to assess the year since the new rules took effect and to discuss what remains to be done to improve the labor market while supporting a healthier economy. These remarks were offered in a climate of cautious optimism but with clarity about the remaining work needed to reduce prejudice and pursue sustained economic growth.
The CES-CV president, Arturo León, emphasized that the reform has delivered tangible improvements in employment stability across the autonomous region. He highlighted a substantial rise in permanent contracts, noting that about half of new jobs now fall under indefinite agreements, a significant increase from the roughly 10% observed in recent years. Alongside these gains, there has been a notable improvement in overall employment statistics. León pointed to a 4.7% drop in unemployment across the autonomous community and a 5.2% decline in Alicante province during the past year. He also drew attention to sharper progress among groups historically exposed to insecurity, including a 15.42% decrease in youth unemployment.
The event featured a display of the impact within the social security system as well, with data showing 54,493 individuals currently benefiting from social security across the Community, including 23,342 in Alicante. León described the law changes as shifting the employment paradigm, signaling better job stability and security for workers. The unions and employers alike underscored the positive trajectory, arguing that the agreement’s core measures helped to stabilize hiring and reduce turnover. Ana García, secretary-general of CC OO, pointed out ancillary benefits such as lower turnover, greater job stability, and a reduction in unemployment benefits. The consensus among speakers was that the reform’s framework contributed to steadier work arrangements and more predictable careers for many workers.
Salvador Navarro, head of the CEV, affirmed that the sustained stability achieved through the agreement is a key driver of ongoing economic progress. He described the reform as a mechanism for internal flexibility that companies can leverage to navigate complex situations, including those generated by energy pressures. Navarro also stressed the necessity of staying committed to a transformation of the production model to lift income levels and reduce structural vulnerabilities within the economy. There was a shared call to target fraud and other pockets of inefficiency that continue to hinder broader prosperity.
In a section dedicated to the essential reforms, the participants acknowledged the concessions made to reach consensus, even as not every clause of the legislation receives unanimous support. Ismael Saéz, the UGT’s regional head, noted concerns about the reform expanding the scope for companies to use Employment Regulation Files without prior authorization, and the ongoing debate over the so-called fee suppression rules. The CC OO representative signaled a commitment to addressing involuntary labor market bias, particularly the underemployment of workers who are part-time because full-time roles are not available. This issue disproportionately affects women and perpetuates gender gaps that the reform aims to shrink. Navarro called for continued investment in a new production model that raises living standards and strengthens the economy, along with robust efforts to combat fraud and other economic vulnerabilities that do not benefit workers or businesses alike.
Looking ahead, the debate touched on pensions and wage policies. While there was broad agreement on the need to increase protections for workers, the participants did not shy away from acknowledging disagreements over the minimum wage and other measures tied to pension reform. The broader context includes the difficulty of renewing the National Collective Bargaining Agreement, a challenge that Navarro described as unlikely to be resolved easily given the current political landscape. The dialogue underscored a shared interest in advancing practical reforms that support stable employment while recognizing the political realities that shape policy decisions in both Canada and the United States as well as within Spain.