The Ministry of Labor has an agreement on track to reform unemployment benefits after the meeting held this afternoon with social agents. The Government has presented a new proposal that incorporates, as new features, the creation of a specific subsidy for women victims of gender violence and new rules of compatibility with employment.
Along these lines, the Secretary of Public Policies and Social Protection of CCOO, Carlos Bravo, revealed after the meeting that the Government is going to maintain the 125% surcharge for those over 52 years of age who receive the unemployment assistance subsidy. This circumstance clears the way for the subsidy reform to finally see the light, since it was the demand that Podemos put forward last January to join the PP and Vox to reject the royal decree that was not validated in the Congress of Deputies.
The Secretary of State for Labor, Joaquín Pérez Rey, for his part, has not been as explicit in his statements on this point as the head of CCOO, but he did point out that the reform “will establish the contribution system that allows us to make the norm have the support of the social agents”, but also with the necessary votes in Parliament. Of course, he regretted that four months ago the text was rejected for “a reason that we have always been willing to negotiate.”
For those over 52 years of age, there is currently an overpayment based on 125% of the minimum interprofessional wage (SMI). The reform proposed by the Government included improvements such as the expansion of protected groups and the increase in the amounts of aid, but contained a gradual reduction of that extra 25% of the SMI.
The Ministry explained it because it no longer made much sense given the increase of more than 50% that the SMI has experienced in Spain. But Podemos called the measure a “cut” and, in the midst of an increase in tension with Sumar, it served for the ‘purples’ to unite their five key votes with those of the PP and Vox.
Thus, Carlos Bravo announced this Monday that the contribution remains “unchanged” with respect to its current regulation, which he valued positively, since the unions had demanded a “double condition” to support the text. These were that there be “negotiation” and that the text have “guarantees” of moving forward in the parliamentary process.
The general secretary of Podemos, Ione Belarra, scored the goal and claimed that “fighting is useful.” “First they said that there was no cut in the pensions of those over 52 years of age, then they recognized that it was a cut, now the Government rectifies and will eliminate it while maintaining the rest of the improvements. I wish they had done it sooner, but Podemos once again shows that fighting is useful,” Belarra published on social networks.
Regarding the new aid, not only will it be possible to make the subsidy compatible with a job, but also the contributory unemployment benefit may be simultaneous with the performance of a job, in a “very similar” way to what was proposed for the level assistance.
The secretary has indicated after the meeting with the social agents that the objective of this measure is “very clear”: to prevent unemployment from becoming entrenched.
“Starting this year, which is when we begin to have major problems with insertion into the labor market, there will be a whole series of stimuli so that people can join the labor market. Therefore, it will be a special formula to protect the long-term unemployed,” he explained. This reform is of great importance for the Executive because part of the fourth payment of the Next Generation European funds depends on its achievement.
The text that is being finalized with employers and unions improves the amount to be received, expands the beneficiary groups and extends compatibility with employment to the contributory unemployment benefit (not only for the assistance subsidy).
The amount of the subsidy is equivalent to 80% of the multiple income indicator (IPREM), about 480 euros per month, but after the reform it will increase to 95% of the IPREM (570 euros) for the first six months, it will drop to 90% in the six months following periods and will be 80% as currently for the rest of the time, up to a maximum of 30 months.
The subsidy is extended to those under 45 years of age without family responsibilities, to temporary agricultural workers, to cross-border workers from Ceuta and Melilla, and to those who can prove contributions for periods of less than 6 months and do not have family responsibilities.
In general terms, both the Secretary of State and Bravo and the Secretary of Institutional Policy of UGT, Cristina Estévez, showed great agreement about the subsidy reform measures. In this sense, the unions commented that they are waiting for the final text to see the fine print that, if it includes what was discussed at this Monday's meeting, will be submitted to the evaluation of the management bodies of both organizations.
“Today the wicks have been deeply laid so that in an imminent period we can announce a new social dialogue agreement (...) We will have to decide the specific legislative vehicle, but obviously what I can guarantee is that what was agreed in dialogue will be respected social”, declared the Secretary of State for Labor after the meeting.
However, Estévez recalled that this reform leaves out some issues such as an improvement of the IPREM (multiple-effect public income indicator) or the linking of the subsidy to another index.
Bravo has added the need to address improvements so that all groups that receive some type of subsidy can end up being integrated into the minimum vital income (IMV) and eliminate coverage gaps in the protection system so that no one is left helpless.
The Secretary of State has emphasized that his intention is for the CEOE to join this possible agreement because "there is no compelling reason for the employers' association to be left out." CEOE sources have explained that they prefer to wait to read the adjustments to the text that Labor has agreed to send them before commenting on the reform.
"It is true that there are some positions of the Spanish employers that are not acceptable to the Ministry of Labor, but I believe that a subsidy reform that incorporates new groups (possible agricultural workers, those under 45 years of age, victims of gender violence), which improves "the amounts, which guarantee compatibility, there is no justification for the employers' association not to be included," he pointed out.
