The pension reform remains blocked

The pension reform continues to be blocked, and unions and employers call on the Government to present a global proposal before calling a new negotiating meeting.

Thomas Osborne
Thomas Osborne
12 December 2022 Monday 06:40
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The pension reform remains blocked

The pension reform continues to be blocked, and unions and employers call on the Government to present a global proposal before calling a new negotiating meeting. At the dialogue table this morning, the Ministry of Inclusion and Social Security has moved very little, with few variations on its previous proposal and none relevant. They refer to the improvement of the gender gap and the coverage of gaps in professional careers, which have been considered by the social agents as positive, but insufficient.

Neither the unions nor the employers like the slow pace of the negotiations, which they consider makes it very difficult to reach an agreement before the end of the year, as indicated by the established calendar. The few novelties presented today by the ministry have reinforced this feeling among the social agents, for which reason they have required a global approach, and in writing of the entire reform.

Here continues the resounding opposition of unions and employers to extend the calculation period, which Escrivá places at 30 years with suppression of the two worst years. “The Government insists on the proposal and has once again received the same response from the social partners. It is not in the Toledo Pact, there is no evidence that there is sufficient parliamentary support, and therefore we do not understand that, without having both things guaranteed, the Government makes the proposal that has not been debated at the heart of the table", affirms Carlos Bravo , of CC.OO.

There is also no agreement on the second central element of the Government's approach, the uncapping of the maximum contribution bases. They are two issues in which the consensus of the social agents is not achieved, although, in this case, for different reasons. The CEOE has stated that "we maintain our opposition, understanding that the proposals imply both a cut in rights and an increase in labor costs that will harm the labor market."

The minor changes that he has proposed today regarding reducing the gender gap have been better accepted, although they are considered insufficient. Specifically, the Ministry of Inclusion and Social Security proposes an improvement in the coverage of gaps in professional careers that end up leading to a lower pension. The modifications that you have presented at the dialogue table this morning go in three directions.

On the one hand, for career interruptions, a reinforcement of coverage is included, raising the minimum base to 80% between months 49 and 72 for women between 35 and 45 years of age and men who have suffered an interruption in those years of her working career after having a child.

A second change is the improvement in the coverage of periods of leave to care for relatives and reduced working hours to care for children. And finally, an increase in the additional growth of the gender gap complement is also proposed between 2024 and 2025; an additional increase to the annual revaluation.

Of these modifications, UGT states that in the contribution gaps "there are improvements, but not enough", the same position as CC.OO. For its part, the CEOE points out that “in a matter of gap, the ministry has incorporated some minor measure that points in the right direction. But essentially, the proposal harms women even more than the one studied last week, since now the possibility of covering contribution gaps for women is limited to the period between 35 and 45 years of age”.

There will be another meeting, but without a specific date, and with the request of the social agents that the ministry provide them with a global proposal beforehand, with all the issues included in this reform.