Regional bargaining gains ground as reform reshapes unemployment benefits and labor rules

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A royal decree introduced a reform of unemployment benefits that prioritizes regional agreements over those at state or sectoral levels. This pledge, linked to Pedro Sánchez’s investment agreement with the PNV, drew sharp criticism from the UGT and CC OO unions, as well as from the business associations CEOE and Cepyme. They argued that the measure had not been negotiated within the social dialogue framework. The Asturian employers’ association FADE joined the joint statement of these groups, saying the government showed a lack of loyalty.

The issue did not surface in the press briefing after the cabinet meeting that approved the subsidy reform. The event was attended by the second vice president and minister of Labor, Yolanda Díaz, the minister of the Presidency, Félix Bolaños, the government spokesperson and minister of Education, Pilar Alegría, and the minister of Health, Mónica García. It was Aitor Esteban, the PNV’s Congress spokesperson, who announced on Tuesday that the matter had received Council of Ministers approval. On the following day, the BOE rule on unemployment benefits reform confirmed that regional agreements are to take precedence over sectoral and state-level agreements, with the caveat that implementation should be more favorable for workers than what is established in state contracts or agreements.

According to the government’s explanatory statement accompanying the decree approved by the Council of Ministers on Tuesday, an amendment to Article 84 of the consolidated text of the Labor Code was added to clarify and improve regulations in collective bargaining. The aim is to enable autonomous communities to adopt the most suitable agreements for workers. Specifically, the amendment clarifies current regulation by stating that regional agreements, signed by legally empowered representatives and potentially subject to certain limitations, will take priority in implementation over all other sectoral or national agreements. This holds provided that the contracts and agreements in question receive the majority support required to form the negotiation commission within the relevant unit.

The shift to give predominance to regional agreements over sectoral ones had not been included in the 2021 labor reform but appeared in the nationalist agreement with the PSOE for Pedro Sánchez’s appointment. Esteban noted that the measure had long been demanded by workers and by unions in Euskadi, describing it as expanding the framework of bargaining relations. The Basque spokesperson highlighted that this change alters the usual balance of bargaining power at the national level.

UGT and CC OO criticized the reform, arguing that the structure of collective bargaining should be addressed within the social dialogue framework. They asserted that the changes were not contemplated within the scope of the labor reform as negotiated. The business community echoed these concerns; CEOE and Cepyme stated in a joint message that regional agreements taking precedence over national or company agreements had been approved without prior notice and without proper social dialogue. They argued that the constitution grants the authority to consult social actors on such significant changes in collective bargaining and stressed that these changes were not included in the most recent labor reform. FADE joined in, emphasizing that the move challenges national market unity and questioning the government’s commitment to social dialogue.

UGT-FICA to negotiate on reducing working hours in Asturian metal

Jenaro Martínez, secretary general of UGT-FICA Asturias, called for immediate talks on new agreements covering construction, automobile, and metal sectors that have expired in Asturias. On the metal sector, which employs about 25,000 people in the region, the union plans to pursue a wage increase aligned with the employment and collective bargaining agreement, aiming for a 3% rise with a January start possible. He also advocated reducing the annual working hours, a goal that would lower the current 1,736 hours per year that have defined the sector for two decades. Martínez’ remarks came as UGT-FICA Asturias outlined the regional committee’s position, noting that roughly 4,000 unemployed workers in metal and construction are eager to return to work. In response to business concerns about a lack of skilled labor, he urged a shift from complaint to solution, stressing the need to digitize employment processes and raise worker qualifications. He also pressed ArcelorMittal to commit to investment in the Gijón iron ore direct reduction plant, calling it essential for Asturias’ steel industry future and warning that delays are unacceptable.

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