April 16, 2021

The Círculo de Empresarios calls on the Government to be “brave” and lower the cost of dismissal to reduce temporary employment


The new president of the Círculo de Empresarios, Manuel Pérez-Sala, appointed last March, has defended in his first steps in office an old proposal from the lobby business: lower the cost of dismissal. Pérez-Sala affirmed this Thursday that “it is time to adopt different and courageous measures” to end the high rates of unemployment and temporary employment in the labor market and, among them, has opted to reduce the number of contracts and cut the cost of dismissal, collect from his speech at a New Economy Forum breakfast.

Spain, at the bottom of the EU in "decent jobs" as a result of austerity policies

Spain, at the bottom of the EU in “decent jobs” as a result of austerity policies

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Manuel Pérez-Sala has affirmed that the Spanish labor market suffers “enormous problems” and has identified among them “the precariousness” linked to the large amount of temporary employment. “We must give much more stability to employment. It is a commitment to society and it is time to think of imaginative and courageous solutions,” he said.

In this sense, the leader of the lobby Conservative business has suggested –as the Coalition Government has proposed– to reduce the current contractual modalities to three: one for apprenticeship, one temporary for just cause and that all the others are indefinite.

A layoff that goes around “15 days a year”

But Manuel Pérez-Sala has added that it is necessary to go further and has called to “recognize” that in Spain a good part of the temporary employment period “has to do with the costs of dismissal”, which are situated at 20 days per year worked in case of objective dismissal. “We will have to see this bravely,” pointed out Pérez-Sala, who has opted for the costs of dismissal in Spain to resemble those of European countries where these “work better” and which are around “15 days a year.”

The recently elected president of the Círculo de Empresarios has added regarding the ERTE that “the priority at the moment is employment”, so he has considered that in the next extension of the ERTE it is taken into account that there are companies that cannot comply with the commitments to maintain employment for issues “not attributable to the companies”, such as the delay in vaccination or the different waves of the virus that have been unleashed in these months and that continue to limit their activity. Even, “in some cases”, due to the “bad” management of public administrations, he added.

Extend the pension calculation period

On the other hand, Manuel Pérez-Sala has stressed that the pension reform is something “absolutely decisive”, since in his opinion “if we do nothing, our pension system will collapse in a very short time.” “We believe that absolutely urgent and clear decisions must be made,” he added, after making it clear that “it is not a question of reforming one parameter or another, absolutely everything must be reformed.”

Among the measures that the lobby The company considers necessary, has decided to calculate the pension taking into account “all the years of contribution” of the worker, decide the retirement age according to life expectancy, update the pensions in a “prudent” way, and, “above all” , delay the legal retirement age.

From his point of view, “the first thing to do is to establish a system of notional accounts”, whereby citizens will check what they individually contribute to the system with their contributions and what they will receive in the future as a pension based on to this contribution. In this way, “most retirees would realize that they are receiving a much higher consideration than their contributions,” he stated, and “non-retirees will realize that they are going to have to delay their retirement age to have a decent pension “.

“The reform of the labor market and that of pensions are closely linked and the solution is to reform everything and delay the retirement age,” Manuel Pérez-Sala has stressed.

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