Spanish government's "shock plan" to create employment is a joke

iberia | economy | press release

Wednesday February 16, 2011 20:46

by Confederación General del Trabajo - CGT

For the Confederación General del Trabajo (CGT), calling the executive order approved today by the government a "Shock Plan" to promote stable employment is merely making a mockery of the 4.7 million unemployed people in the country. The measures approved by the cabinet is the product of an anti-social pact made a few days ago by the Socialist Government, the Spanish Confederation of Employers' Organizations (CEOE), the Spanish Confederation of SMEs (CEPYME) and the UGT and CCOO unions. [Castellano]

The "Shock Plan" is limited to an emergency employment programme lasting 12 months, for people under the age of 30 and people in long-term unemployment. New contracts have a duration of six months and are part-time (between 50-75% of full-time). The creation of these contracts allows companies to pay employers' social security contributions reduced by 100%, if they have fewer than 250 employees, or 75%, in the case of companies with more than 250 employees.

This emergency employment programme ends with a piece of pie in the sky when it states that "Regional State Employment Services will provide personalized assistance to unemployed people who are actively seeking jobs and will provide increased training opportunities for unemployed people so as to improve their chances of returning to the labour market". And this makes up the entire contents of the Shock Plan to create stable employment.

The CGT also believes it is totally inadequate and outrageous to offer €400, for at most six months, to people who after 16 February will no longer be covered by unemployment benefit. And this provision excludes those people who previously received benefit of €426.

Some time ago the CGT already declared that the social and economic pact seriously hurt working people while at the same time not doing enough to defend the state pension system. This so-called Shock Plan confirms this view.

The CGT union will continue to struggle against the permanent attack against workers and the working classes of this country. We will thus continue to call for mobilizations in defence of labour rights and social rights.