Unions and businessmen reject the government’s new ERTE proposal

The Government has presented to the social partners a new proposal for future ERTE and, at the moment, the unions and employers do not like it. This has been expressed in the meeting that took place this Wednesday morning at the Ministry of Labor, as reported by Cadena Ser and confirmed by sources of social dialogue to elDiario.es. The latest draft, with notable changes in the Executive’s proposal after the intervention of the Ministries of Economy and Social Security, is “cumbersome” and “very complex”, they complain to the social agents.

Sánchez summons Díaz and Calviño and establishes a coordination system to negotiate the labor reform

Sánchez summons Díaz and Calviño and establishes a coordination system to negotiate the labor reform

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Both employer and union sources confirm to this medium that social agents have opposed the latest draft that the Executive has brought to the table. The future ERTEs, called the RED Mechanism for Flexibility and Stabilization of Employment, are designed to face structural changes in sectors and companies, as well as future economic crises. The idea is that, faced with these adverse situations, companies will choose to take advantage of the new Network Mechanism, instead of dispensing with employees, as has been more common in Spain to date.

The Ministry of Labor had already raised at the table a proposal for these ERTEs for the future who have committed to Brussels within the labor reform of the Recovery Plan. He called them the Employment Sustainability Mechanism (MSE). But, after the entry of the Ministries of Social Security and Economy in the negotiation of the labor reform, the Government has proposed to the social agents a new text with a different mechanism (the now called Network). This new system includes several novel measures that generate tensions in unions and employers, although some differentiated.

Too “complex” mechanism

For example, the offer of the Executive wants to implement files for sectors or companies that face structural changes, in which companies would have to implement relocation plans (in their own company or others), with a mandatory offer of training for the workforce affected. In this process, if the worker left the company to relocate to another, the restructuring company would have to pay 50% of the compensation that would correspond to FOGASA in the event of unfair dismissal. This does not convince entrepreneurs.

The unions explain that the proposal raised now, a few months after having to approve the labor reform, is too complex and they ask to return to the previous proposal of the Ministry of Labor. “There is no time to address this,” they assure this medium.

The proposal includes the creation of a new benefit for workers in a Network Mechanism, different from the unemployment that people now receive in ERTE, which should be paid by a new Network Fund, which should also be created for this purpose. This fund would receive contributions of excess income from unemployment contributions, Budgets and European funds, according to the Executive’s draft.


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