SPAIN: Centre-right government faces its first general strike as the country's two main trade unions call on workers to protest against a labour reform law

Record ID: 340701

  • Title: SPAIN: Centre-right government faces its first general strike as the country's two main trade unions call on workers to protest against a labour reform law
  • Date: 29th March 2012
  • Summary: MADRID, SPAIN (FILE) (REUTERS) VARIOUS OF JOBLESS PEOPLE LINING UP OUTSIDE THE EMPLOYMENT OFFICE
  • Embargoed: 13th April 2012 13:00
  • Keywords:
  • Location: Spain, Spain
  • Country: Spain
  • Topics: Economy,Politics
  • Reuters ID: LVA2WOJO57SW1DLV2U53X7MR5XXK
  • Story Text: After the euphoria of a landslide election victory in November, Spain´s centre-right government faces its first general strike on Thursday (March 29) called by the two main labour unions in protest against a labour reform law which loosens restrictions on sacking employees.
    Unions are against cutting severance pay to 33 days for every year worked from 45 days and restricting inflation-linked salary hikes.
    Labour reform is seen as key to Spain's efforts to persuade markets it is able to slash its budget deficit and boost the competitiveness of its fragile economy.
    Many economists say that Spanish companies must be given the freedom to cut their labour costs to become more competitive, allowing them to then expand and create more new jobs.
    Labour unions however said the reform would inevitably push unemployment to 6 million people from about 5.3 million now.
    Unemployment is running at 23 percent, and half of young workers are without a job.
    For CCOO (Confederacion Sindical de Comisiones Obreras) leader Igancio Fernandez Toxo Rajoy's victory and majority in parliament alone does not guarantee him the support of the population.
    "It's true the government has a majority to make this reform happen and it has the support of partners that have showed their backing, but sometimes legitimacy is challenged by trust, or the lack of, and this government could soon end up finding out that although it has legitimacy, it lacks trust," Toxo said on Wednesday.
    Unions have long been expected to call a general strike in protest at the labour reform, imposed by the government after employers and unions failed to reach agreement. Rajoy himself admitted during a European Council meeting in Brussels in January that labour reform would cost him a strike.
    After a lull in attendance at protests as people seemed to accept the inevitability of austerity cuts and reforms, more recently the UGT (General Union of Workers) and CCOO unions have been more successful in rallying people onto the streets. In March thousands poured onto the streets to protest against the labour reform law.
    Protests is Spain have not been characterised by the confrontations seen in Greece and analysts argue that Madrid, despite its economic woes, is not comparable to Athens.
    "There is no comparison between Greece and Spain. Greece is in turmoil, it's as simple as that. It's in a situation in which general strikes are just a constant of the politics in Greece. The case of Spain is different. This is a very specific strike, against a very specific law, a labour law - a reform of the labour market - and although of course it is social unrest it is not in the scale of Greece at all. It's completely different," political analyst Miguel Murado said.
    On the streets, opinion on the strike is divided.
    "I will not go on strike. I am a freelancer and I think all of us freelancers will work. Furthermore I don't think it's the right time for a strike," freelance legal worker Cristina Mendez said.
    "The truth is I favour the strike, let's see if they listen to the workers' demands," Nelly a petrol station attendant said, clarifying that she would only walk-out depending on her manager's decision.
    Spain´s public transport is expected to run minimum services on Thursday. Picket lines are planned by various groups starting at midnight.
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