Modernising the labour market

Juan Rosell's picture
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Yesterday’s call for a general strike was unnecessary and very harmful for our businesses and economy. The strike went against legitimate decisions taken by the Spanish Government and endorsed by the Spanish Parliament. It also challenges reform agreements in social security and collective bargaining that still need to be negotiated. According to the data released by various governmental and economic agencies, the strike had a little impact.

The need to modernise the labour market is obvious in the constantly changing public, economic and social environment. In these moments of crisis, it is even more necessary to make changes to put an end to the trend of job destruction and generate employment again. Recruiting is a good sign of business development, of generation of wealth, something that employers want. If businesses work well, they gain profits. These profits are not only economic, but also social. When companies are working well, they pay more taxes, increase revenue and re-invest, benefiting all of society.

Reform is absolutely necessary, but the recently approved law does not allow for the internal and external flexibility that is necessary for the modernisation of the labour market. It should encourage stable employment, company flexibility and company capacity for adaptation. According to the World Economic Forum, Spain is loosing its competitive capacity, ranking in the 130th place regarding labour market efficiency, limited flexibility and difficulties for dismissals. This data shows the need for major reform. The recently approved reform by the Spanish Government is not effective and thorough enough for our economy to increase productivity, contribute to generating jobs and provide, for both employers and workers, the necessary tools to come out of the economic crisis that we find ourselves in.

 

Juan Rosell Lastortras

President of Foment del Treball Nacional (Catalan Employers Confederation)

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