Tue. Jul 16th, 2019

The Government renounces to change pensions by decree and delays the adjustments of the labor reform | Economy

The Government renounces to change pensions by decree and delays the adjustments of the labor reform | Economy



This Friday the Government does not plan to approve decrees with changes in the labor reform or in the pension system. Today a meeting was planned with unions and businessmen to address changes in the labor market. But finally the meeting has been postponed. The official cause adduced in the Ministry of Labor is "agenda motives" and add that for this Friday this department will not take anything to the Council of Ministers, as was initially planned.

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In the department led by Magdalena Valerio warn that at this time everything is changing and these initial plans may undergo alterations at any time. What does seem to finally be approved this Friday is a decree, prepared by the Ministry of Equality, with measures to promote gender equality between men and women in the labor market.

That's right: there is a proviso in the battery of changes prepared by the council of ministers: mid-morning, the Minister of Labor, Magdalena Valerio, stressed that the Executive does not plan to change pensions by decree. "As a government, we have to value it, but it is not our will to change pensions without an agreement," Valerio replied when asked if he planned to repeal the 2013 pension reform completely before the end of the legislature.

The pension reform of 2013 linked pensions to the financial health of Social Security and linked the initial benefit to life expectancy at the time of retirement. Both measures are suspended, "repealed de facto," Valerio said. But if the suspension is not consolidated, they will come back into force in 2020 and in 2023, respectively.

To consolidate the revaluation of pensions with the CPI, it was done in 2018 and 2019, there was a "pre-agreement" in the Toledo Pact. The unions demand the consolidation of this, but CEOE and Cepyme refuse to give their support to this measure now, in the electoral period.

Decrees of social and labor reform

The Government's intention is to adopt social and labor measures before the elections. For this, he held a meeting last Friday with the social agents to whom he presented an index of topics that he planned to address in a decree with social protection measures. The most difficult issues were no longer there: the revaluation of pensions with the CPI and the repeal of the sustainability factor, that is, the annulment of the 2013 Social Security reform.

The development of some of these issues came to social agents on Monday. And the details quickly became known in the press. Shortly after, Work suspended the other meeting, in which aspects of the labor reform that were intended to be modified were going to be addressed.

Labor sources said on Monday that the Government's intention is to bring to a decree the issues that are "more trite". This means that Labor intends to introduce changes in collective bargaining, giving more hierarchy to sectoral agreements than to those of the company, at least in relation to salaries and annual working hours. It would also involve changes in subcontracting or the automatic extension of expired agreements that have not been renewed.

However, the spokesmen of the Ministry of Labor point out that the texts that should develop these measures are not ready to be analyzed with the social agents.

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