March 3, 2021

The Bank of Spain declares itself in favor of allowing companies to make staff adjustments




The Governor of the Bank of Spain, Pablo Hernandez de Cos, has warned that there will be companies that have to make partial or total workforce adjustments due to the new consumer characteristics, and has urged to allow them to do so as soon as possible.

Before the Senate Budget Committee, he pointed out that “it must be recognized that there are structural changes in the demand for products and sectors in which in some cases it is counterproductive to resort to ERTE, and some companies will need to adjust partially or totally and they must be allowed to make this adjustment with the mechanisms of labor legislation.

Hernández de Cos has added that the adjustment of templates to the new consumer realities it should be produced fast, since “we know that the slowness in this reallocation process is also a problem for the economy.”

It has also indicated that do not rule out the extension again of ERTE beyond the scheduled date and has specified that the determination of how many ERTE will be really temporary and how many will end up in unemployment “will obviously depend on the macroeconomic evolution of the coming months.”

The governor has asked «Courage» to tackle the problem of duality in the labor market with new measures and he has insisted that “you have to take risks” because “paralysis is not an alternative”, while recalling that long-term unemployment is a persistent phenomenon in Spain

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