THE REFORM IN THE LABOUR MARKET IRELAND VS SPAIN - The Unique Contract

In these days in Spain one of the main topics is the new reform in the labour market and how they can make it to work out. Today I was reading an article about that in a Spanish newspaper written by a group of economist.

But firstly, before to talk about that I’d like to talk about two big agents in Spain, employers and unions. After several years of a big recession in the country, we have more than 20% of unemployment there and several difficulties to go out from the present situation. These two groups called the “SOCIAL AGENTS” haven’t been able to negotiate an exit or an agreement to work, no with the Socialist Party in the government either now with the Popular Party. Shame of them, especially from my point of view of the unions there, stuck in the past without any willing to negotiate.

As a recommendation this group of experts started talking about the institutions, all the paper work to start new business in Spain and to support the medium and small companies trying to increase the competitiveness in the country. In Ireland is the big bet. They have a very small tax for the benefits of the companies making so attractive to come here to invest and create new work positions.

The experts considerate so important work in a labour market no for the big companies or the most protected workers, they talk about a market for everybody. In my opinion is a deep problem of culture there, from the employers and from the employees too. It is something as the two of them think they have to be in a kind of war with the other and none of them realise they have to work TOGETHER. But this is something to work in a medium term not now.

When I arrived to Ireland I didn’t speak English at all but after a hard quest I could find one. I didn’t speak good English, I was an immigrant but I got an indefinite contract, part time with a non determinate number of hours to work per week. After two years I have been working 40 hours the most of the weeks and I was promoted one. That means that some weeks when is no busy the cut me hours, I collect less money but they don’t fire me. Highlight that when I work more hours I collect for all of them too.

This contract allows hire students. In fact the weekends the most of the workers to serve functions are college students, with a contract that are earning a few money to cover some of their expenses. As well some of the chefs are going to college. They have a part time college; they study to become chef while they work as one. You can extend this to the whole country in many different positions. Study and work at the same time.

If I look to Spain, there are no part time contracts that can suit for the students, there is no flexibility to the companies to have a bad week or month. In fact the expedients of employ regulation cost too much money, time and paperwork. And the worst is that if you want to hire your employees because you have started to have business again you can’t.

Here is not link from the wage to the CPI.

There is not a perfect country either Ireland is, but we can learn from the good things that the other have and we not.