Observation (CEACR) - adopted 1995, published 82nd ILC session (1995)

Employment Policy Convention, 1964 (No. 122) - Spain (Ratification: 1970)

1. The Committee notes the Government's detailed report for the period ending June 1994, with which it transmits the comments of the General Union of Workers (UGT) on the application of the Convention and its response to these comments. The Committee once again wishes to express its gratitude to the Government which, by providing precise and reasoned responses to most of the points raised in its previous observation, shows the importance that it attaches to the continuation of a well-founded dialogue with the supervisory bodies concerning the application of this Convention.

2. The Government provides a detailed analysis in its report of developments in the active population, employment and unemployment in 1992 and 1993. The deterioration in the employment situation, which was appreciable during the previous period, has worsened. With a decline of 1.9 per cent in 1992 and 4.3 per cent in 1993, the reduction in the volume of employment was sharp, particularly in industry. The unemployment rate rose from 16.1 per cent in 1991 to 18.1 per cent in 1992 and reached the unprecedented level of 22.7 per cent in 1993 (it is as high as 40 to 50 per cent in the 16 to 24 age category). Despite the recovery in 1994, the OECD forecasts that the unemployment rate will continue to rise to over 24 per cent. Furthermore, the rise in unemployment has further accentuated the substantial regional differences in employment levels. The UGT emphasizes the precariousness of the labour market as a result of the increased incidence of temporary employment, which accounts for around one-third of total employment, as shown by the statistics provided in the report.

3. The Government describes the two priorities of its employment policy, namely the promotion of recruitment under contracts of indeterminate duration and the integration of young persons into the labour market. It states that employment promotion contracts, which made it possible to recruit workers on fixed-term contracts without the obligation to prove the temporary nature of the work, have been abolished, except for categories of unemployed persons with particular difficulties, such as workers aged over 45, persons with disabilities and the long-term unemployed. The transformation of temporary contracts without limit of time continues to be promoted by the incentives that the Government described in its previous report, which have been extended to cover part-time work, which is being encouraged as a means of sharing existing employment. The integration of young persons is being promoted through practical trainee contracts and apprenticeship contracts, for which incentives are also available to promote their transformation into permanent contracts. In the context of active employment promotion measures, the Government also refers to the subsidy for the recruitment of unemployed persons for work of general interest in the service of local communities and public bodies. Furthermore, the measures taken under the National Vocational Training and Integration Plan (FIP) are now directed solely towards unemployed workers.

4. The UGT emphasizes the harmful consequences of precariousness on the rights and skills of workers and considers that the employment policy measures adopted over recent years have not led to any reduction in the rotation of temporary workers, which has been identified by the Government as one of the structural problems of the national economy. The UGT states that it is particularly concerned by the introduction of the apprenticeship contract, which permits recruitment at a wage that is lower than the inter-occupational minimum wage and deprives young workers of social protection in the event of sickness or unemployment. It is also concerned at the new temporary work enterprise regulations, which encourage the development of precarious forms of employment, as well as at the introduction of individual or collective terminations of employment for economic reasons, which empower employers to turn any permanent contract into a temporary contract at their discretion. The UGT expresses more general concern at the deregulation and flexibility measures which only leave workers with the option of defending their rights through the courts. In its reply, the Government states that the level of remuneration of young persons covered by practical trainee or apprenticeship contracts is determined so as to compensate the training provided by the employer through a reduction in wage costs. It states that temporary work enterprises are not absolved from the general requirement to justify the use of fixed-term contracts.

5. The Committee notes the Government's commitment to promoting employment through contracts without limit of time, even though the measures implemented for this purpose do not appear on their own to have prevented the continuation of the worrying rise in unemployment and the decline in employment security. It notes in this respect that the Government recognizes that employment promotion contracts ceased to produce the desired results when the economy went into recession. The Committee is also bound to recall that it is the responsibility of the Government to ensure that employment promotion measures are not diverted from their objective of achieving the lasting integration of beneficiaries into employment. In particular, it requests the Government to describe the training content of the various integration contracts for young persons and to state whether guarantees are established to ensure that the training is provided. The Committee also notes that the current reform of labour law is intended to promote the creation of employment through the introduction of greater flexibility on the labour market. The Committee, which is not unaware that certain excessive rigidities can be unfavourable to employment, nevertheless emphasizes that structural reforms of the labour market should not have the effect of unduly reducing the protection of workers, and that the expected costs and advantages should be shared equitably by the parties concerned. Furthermore, the Committee is of the opinion, as it has noted in its General Survey on Termination of Employment, that the appropriate minimum level of protection provided by labour law is not only reconcilable with the promotion of employment, but encourages it.

6. The Committee notes the Government's detailed explanations on the issue of the definition of suitable employment, the refusal of which may result in loss of entitlement to unemployment benefit. It will not fail to take this information into account when examining the application of the Unemployment Provision Convention, 1934 (No. 44).

7. With regard to the effect given to the provisions of Article 3 of the Convention, the Government refers to consultations with the Economic and Social Council, to which the draft reform of the labour market was submitted for its opinion. The Committee would be grateful if the Government would continue to supply information on any new consultations held with the representatives of the persons affected, and in particular the representatives of employers and workers, concerning employment policy, with an indication of the opinions expressed and the manner in which they were taken into account. It recalls in this respect that the consultations required under this fundamental provision of the Convention should relate to all the aspects of economic policy that affect employment. The Committee also notes that, according to the UGT, all the trade union organizations expressed their firm opposition to the recent labour market reform measures.

8. More generally, the UGT regrets, in the context of very high unemployment and increased precariousness, the absence of a policy for recovery and of industrial and training policies which would contribute to renewing the industrial fabric and preparing young persons for occupations of which society has real need. With reference to its previous observation, the Committee notes in this respect that the Government's report does not contain the information requested by the report form in order to enable it to evaluate the manner in which the employment policy measures are adopted "within the framework of a coordinated economic and social policy" (Article 2). The Committee recalls the employment policy, in the meaning of the Convention, is not limited to labour market policy and it requests the Government to specify in its next report how the measures adopted in such fields as fiscal and monetary policies, prices, incomes and wages policies, investment policy, education and training policies, as well as policies designed to ensure balanced regional development, contribute to the achievement of the objectives set out in the Convention. The Committee notes from the conclusions of the latest OECD study that unemployment is the most serious economic problem in Spain and it hopes that in its future reports the Government will show the success with which it is pursuing ",as a major goal, an active policy designed to promote full, productive and freely chosen employment" (Article 1).