Calviño and Díaz clash over the unemployment benefit reform to encourage job search

First week with the coalition Government in full exercise of its functions and first disagreement in its economic area.

Oliver Thansan
Oliver Thansan
28 November 2023 Tuesday 15:31
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Calviño and Díaz clash over the unemployment benefit reform to encourage job search

First week with the coalition Government in full exercise of its functions and first disagreement in its economic area. The Ministry of Economic Affairs and the Ministry of Labor clash over the unemployment benefit reform with two different, even antagonistic, positions that they made public this Wednesday, coinciding with the solemn opening session chaired by the King in Congress. For Yolanda Diaz, any cut in benefits is unacceptable and for Nadia Calviño, changes to the system are essential.

Economy and Labor are negotiating a broad reform to adapt the entire unemployment system to the demands of the labor market. For days, both departments have recognized an exchange of documentation that has caused this train crash.

The second vice president, Yolanda Díaz, expressed her dissatisfaction this Wednesday with the proposals she has received from the Economy and even spoke of possible reductions in benefits. “I guarantee the workers of our country that from this Vice Presidency we are not going to promote any cuts in unemployment benefits,” she said. “Quite the opposite, the legislative reform that we have proposed has to do with gaining rights, it has to do with the expansion of subjectivities in unemployment benefits,” she added.

Some statements that did not sit well with the First Vice Presidency. The department led by Nadia Calviño responded that they are aligned with Labor “in the elements mentioned by that department” in their exchange of documents. Sources from the Ministry of Economic Affairs cited measures under discussion such as making the benefit compatible with part-time employment, providing coverage to groups such as 45-year-olds without family responsibilities who until now do not enjoy protection, or reforming the portfolio of services or itineraries. training and labor programs of the State Public Employment Service (SEPE) to adapt them to the profiles and personal situations of the unemployed, among other measures.

The beginning of the discord was a statement by the Secretary of State for Economy, Gonzalo García, this Monday in which, in a forum of the consulting firm EY, he assured that the reform of the level of unemployment assistance must take into account that some “elements of protection”, the subsidies to which the unemployed have access are currently covered by the Minimum Living Income. “We have a situation that is causing a shortage in certain sectors and, therefore, it is time to carry out this reform that allows these people who are receiving a subsidy to be activated and incorporated into the labor market.”

“The reform is along those lines of encouraging reintegration and for all these people to take advantage of the opportunities that we now have and that are clearly going to be maintained and deepened,” added Calviño's number two, insisting on the idea of ​​adapting “this system of subsidies to the existence of the Minimum Income that takes into account all personal characteristics and entails a framework of inclusion policies.”

Economía added today that the objective of its approach is “that the entire system is aimed at supporting employment. “At a technical level within the Government, documentation is being exchanged to have the best possible reform, aligned with the labor reform, and to achieve full employment in this legislature,” ministry sources added.

The reform of unemployment benefits is linked to the request for the fourth payment of European funds, a decision that the Government wants to make before the end of the year. There are 10 billion at stake.

Regarding infractions against unemployed people who reject job offers, Economía specifies that there will be no changes. They refer to the Employment Law, which was approved on March 1. This rule classifies, in the first paragraph of section 2 of article 17, as a serious infraction: “Rejecting an appropriate placement, whether offered by public employment services or by placement agencies when they carry out activities in the field of collaboration with those, or refusing to participate, except for justified cause, in those activities to improve employability proposed in the personalized itinerary or plan.”

It is the first major discrepancy in the economic area of ​​​​the executive between the PSOE and Sumar since the investiture and government sources recalled today what they experienced with the labor reform, when Calviño came to summon Díaz to agree on a unified proposal. While in office, both vice presidents already had differences over STC's entry into Telefónica's shareholding.

The president of the Spanish Confederation of Business Organizations (CEOE), Antonio Garamendi, stated today that the future reform of unemployment benefits does not depend exclusively on the Ministry of Labor, but is part of social dialogue and the Ministry of Economy is also involved. , employers and unions.