05/27/2022
An Analysis of Spain's Labor Reform from Young Communists
From the editor. Our comrades from the youth organization (Colectivos de Jóvenes Comunistas) of the Spanish Communist Workers' Party (PCTE) sent an interesting analysis of the labor reform in Spain. The text brought to your attention helps to understand what regressive processes are now taking place in many parts of Europe.
1 Introduction: nature and scope of the reform
A few days ago, the Spanish Congress of Deputies approved Royal Decree No. 32/2021 on urgent measures in the framework of labor reform. In fact, this reform is a clear example of the fact that in times of crisis, social democracy cannot offer solutions that go beyond the interests of capital. The reform is presented as a lifeline for young people who find themselves in an atmosphere of instability and uncertainty. In fact, it reinforces the current structure of labor relations, based on the wide possibilities of companies to respond flexibly to the need for employees.
This reform implements the "flexible security" strategy called for by the European Union. It is based on the established practice of temporary employment contracts, short-term employment, easy layoffs, precarious jobs - all of which are especially condemned by workers and trade unions. Such phenomena poison life and work, and the working class becomes the basis for the state, with the help of which it covers its losses in unstable times. Thus, the reform does not protect the rights of workers, but is an airbag for capital from a utilitarian and functional point of view. The state, as the backbone of the productive system and bourgeois society, ensures the strengthening of the mechanisms of exploitation by transferring labor income to capital so that the labor force can maintain itself at a minimum subsistence level.
The phenomena mentioned above are the consequences of applying the so-called “internal and external flexibility” formulas from the new reform, which left the “external flexibility” mechanisms intact and included some innovations in the already existing “internal flexibility” mechanisms .
The first mechanism can be defined as the ability of a company to vary the amount of workforce at a given time in accordance with its interests. In other words, the company can hire and fire employees as it sees fit.
The second mechanism helps the company to subordinate working conditions to its interests in accordance with economic and production conditions (rewrite duties, change the work schedule and internal schedule, revise wage and productivity standards, suspend work without compensation in case of a drop in demand, etc.). Thus, the reform gives companies more freedom to change employment relationships as they see fit, but this is presented as something positive as it is "an alternative to termination of employment."
2 The content of the reform and its actual impact on the working conditions of young people
The preamble and text of the document contain references to the vulnerable position of women and youth. Taking into account the real situation in the labor market of these social groups, the decree states:
"There are no objective reasons in the Spanish economy that justify high, compared to the rest of Europe, unemployment and the widespread use of part-time jobs."
However, the reform does not eliminate or even limit part-time work, but only rephrases some of the provisions, taking into account “greater efficiency”. As for the fight against unemployment, classical capitalist mechanisms are used to increase the rate of profit in the conditions of the economic crisis: lowering the cost of labor by hiring young people (who are ready to work for less money) to further reduce the wages of other workers.
The main provisions of the reform can be summarized as follows:
Simplification of employment contracts, which may reduce the level of temporary employment in the future.
Renewal of the norm of automatic extension of collective agreements and the priority of sectoral agreements on wages.
Some changes in the regulation of subcontracting and outsourcing.
Implementation of new “internal flexibility” mechanisms for companies.
First, with regard to hiring , the reform states that it aims to "restore" the priority of a permanent employment contract. Although contracts for the performance of work and the provision of services (which contributed to the fraud of employers), temporary and other contracts are abolished, however, other types of temporary contracts remain: for production needs, for replacement and for training.
• The new production requirements contract rules that allow temporary employment are vague enough to cover most of the needs of companies. Its use is permitted both on a case-by-case and planned basis, which makes us young people fear that in fact our suffering from temporary employment will remain as it used to be.
Secondly, the norm of automatic extension of collective agreements has been restored, which means the automatic extension of current agreements until the parties conclude a new one . On the other hand, the company cannot unilaterally change the size of wages (i.e., cannot cut it within the framework of an industry agreement), but reserves the ability to influence other aspects of labor relations. Prior to the 2012 reform, companies could only improve working conditions under an industry agreement. With the new reform, companies can worsen working conditions in such sensitive categories as overtime, the length of the work shift, and so on.• Employment contracts with on-the-job training are seen as one of the pillars of the fight against youth unemployment. Such contracts are of two types. First: a contract for the provision of professional practice . In fact, this is the usual analogue of an internship, and the reform did not significantly change its provisions. The duration of practice has been reduced from two years to one year, but this provision may be revised by agreement of the parties. Second: training contract, which is presented as an additional advantage in academic preparation. In fact, the training contract has captured the essence of the plight of young workers in our country, as it normalizes the need to work in order to pay for studies, and, as a result, provides companies with a large supply of cheap labor, since the norms provide for paying young employees up to 60 % of the regular rate during the year, in accordance with the category of employee and his functions. The basis of temporary employment contracts provided for in the new reform, along with other exploitation mechanisms, does not include the possibility of early termination of already signed contracts, since the previous norms will be valid until 2025. This also applies to “free contracts”, which were previously prohibited, but became legal after the reform, which allows companies to easily adapt to the needs of the market and production. In other words, it is presented as a victory for stability, but in reality, it only strengthens "labor on demand".
Thirdly, with regard to changes in the regulation of subcontracting and outsourcing. In fact, there are not as many changes as expected and publicly announced. Now the categories of subcontracting and outsourcing are becoming an industry of labor relations in their own right, their agreements are becoming industry-specific, that is, independent of the employing company, which was required in the past.
Despite the exclusion of certain contractual terms, temporary employment agencies and contractors will continue to have a contract based on working conditions, as well as an intermittent fixed contract, since the new provision removes section 12 ET, which prohibits temporary employment agencies from using types of contracts aimed at satisfying “current needs of various user enterprises”.
While opportunities for wage increases and changes in legal wording remain in some cases, contracting and subcontracting is not restricted. In essence, this represents the perpetuation of a fragmented production model in various subcontracts and temporary employment agencies, so effective for employers, but worsening the situation of the working class.
Fourthly , for the most complete understanding of the situation, it is necessary to dwell separately on the Regulation of Temporary Employment Conditions (ERTE) and the introduction of the RED mechanism . Their main purpose, explicitly stated in the preamble, is to replace some external flexibility mechanisms with other internal flexibility mechanisms. In the case of ERTE, the inclusion of government incentives, exemption from contributions in situations related to crisis scenarios, the possibility of contracting for the training of interested workers, and the reduction of working hours or the suspension of contracts should be emphasized. In addition, the reform of the People's Party, which assumes the absence of the need for administrative permission, makes it easier for companies to apply the above measures unilaterally.
The RED mechanism , in turn, is a “flexibility and employment stabilization mechanism” and allows companies to request measures to reduce working hours or suspend employment contracts both during periods of general economic conditions and in case of need for “retraining or professional development” in the sector. In short, the RED mechanism gives companies the power to significantly change working conditions, or rather, modify the terms of the contract (working hours, salary, place of work, etc.).
ERTE and RED are explicitly cited in the text as advances that allow for a scenario in which firms enjoy sufficient guarantees of flexibility in their internal use of labor in the event of fluctuations in production. At the same time, this does not bode well for the working class - it will pay for “modernization” and strengthening the power of employers by exacerbating the current conditions of instability.
3 Tasks of working youth in the context of the new youth employment model
In essence: the fact that one of the paradigm contracts of the temporary employment model is removed does not mean the end of the temporary employment model. On the contrary: the new contractual mechanism only outwardly looks less destructive (intermittent fixed contract). This mechanism does not guarantee either continuity or stability of employment, while the cost of dismissal has not changed and remains within the parameters set by the 2012 labor reform.
For this reason, the reform not only does not overcome instability, but also does not solve the problems of the working class associated with temporary employment. What was presented as a temporary and transitory impact on youth after the 2008 crisis, due to the current reform, will penetrate deeper into the working conditions of the entire working class, allowing the use of labor on demand and completely subordinating our lives to the immediate needs of capital.
Just as before, when we were told the need to unite for the country's economy, so today the social democratic discourse is reduced to the common interests of society, as if there is no division into social classes in society and the same reform can be positive for both employers and for workers at the same time. As we have shown, any concession to flexibility increases the employer's freedom to control the labor force and undermines the position of the worker. Every victory of capital is a defeat of labour. We are being forced to abandon the demands that the labor and trade union movement put forward against the peculiarities of the reforms of 2010 and 2012.
Only a very short-sighted person can think that there are "small victories" for the working class in this reform. Not to mention those who present it as a "historic victory". The innovations not only keep the 2012 reform virtually untouched, but, as we have shown, what seems to reduce instability actually leads to the formalization and strengthening of mechanisms that are extremely functional for capital in this crisis period. The pursuit of flexibility will shape a work model in which volatility and uncertainty become the norm.
We think it appropriate to draw an analogy with the educational reforms promoted by the government (LOSU and the Vocational Training Act). They make training much more narrowly specialized and tailored to the needs of the labor market, in which companies will have more decision-making power, wiggle room and ways to use a semi-free workforce.
For this reason, it is important that we young people, who will be the direct victims of all these transformations, do not fall into apathy that will only please the capitalists and their managers. Crisis times are coming, which will greatly worsen the conditions of our life. We must start the struggle guided by completely different coordinates than during the years of the previous crisis. We need new, revolutionary coordinates that will allow us to win this time.
May Day rally organized by the Colectivos de Jóvenes Comunistas
All of the above requires us to organize and politically realign, turn our anger into a response to oppressors, build a strong organizational network in our living and working space, have a fighting will, and work tirelessly to change the balance of power so that the red flag is again raised against those who want to make us prisoners of a life in constant crisis. This is far from the easiest, but the only true option.
Prisoners of life in crisis / Let's turn anger into response
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