A fresh disagreement has surfaced among government partners over the direction of legislative agendas. After opening the assembly by spotlighting the rifts on an issue carried over from the previous parliament, debates over unemployment benefits are intensifying. The current clash centers on how the European directive on transparent working conditions should be transposed into national law.
Minister of State for Employment Joaquin Perez Rey accused the PSOE of resisting measures that would bolster protections for part-time workers. The department led by Sumar intends to include in the transposition a veto provision allowing a company to unilaterally reduce a part-time employee’s contracted hours.
Following a Monday meeting with social representatives, Pérez Rey described the measure as drastic because it would affect the worker’s future earnings. In Spain, roughly 2.6 million people work part time, with women making up about 73 percent of that group. The term working poverty describes the situation where a person cannot make ends meet despite being employed, usually due to insufficient monthly hours to sustain an adequate income.
The transposition of the directive into domestic law had already been delayed by more than a year and a half; the EU expected it to be incorporated into Spanish legislation from August 2022. The rule would oblige companies to detail a worker’s base pay, bonuses, working hours, and work location in the same contract. It also imposes limits on the extra hours part-time employees can work, a point where coalition members have not reached consensus, as noted by a key second-in-command in the Ministry.
Labor officials had anticipated presenting the transposition to the Cabinet in early February, but disagreements among partners have delayed approval. The government’s lack of a solid parliamentary majority further complicates the process.
Reform efforts resume
The Ministry of Labor held a meeting with employers and unions on unemployment benefits reform. The plan includes increasing the normal subsidy for the first six months of income from 480 euros per month to 540 euros. It also expands eligibility for subsidies to younger workers and those without family responsibilities, among others.
Most of the reform’s new provisions were scheduled to take effect starting June 1, but parliament halted them in January. The Ministry of Labor has reopened discussions in social dialogue to regain momentum and then bring the reform to the parliamentary level as soon as possible, according to the Employment Minister. Perez Rey concluded the lengthy session with a brief press briefing.
A royal decree on unemployment benefits reform collapsed after the government failed to secure a sufficient parliamentary majority. Podemos MPs, aligned with PP and Vox, voted against the measure, arguing that it would reduce support for the unemployed and diminish future pension prospects for those over 52.
The subsidy reform faced initial friction between the Economy and Labor ministries and did not advance beyond a limited dialogue with social actors. The provision would allow salary compatibility with continuing to receive subsidies for the first 45 days of a contract.
Labor remains focused on reconciling elements proposed by unions and employers, aiming to improve protections for part-time workers and facilitate the transition of certain profiles to the private sector. Discussions also touch on the Minimum Vital Income and the number of hours required in regions such as Extremadura and Andalusia to qualify for subsidies, as outlined by the Secretary of State. Nonetheless, there are no indications that Labor intends to alter the core changes envisioned for the reform, despite ongoing disagreements among coalition partners.