After four years of salary adjustment sponsored by Brussels, the European Commission is now criticizing the design of the cut suffered by Spanish workers. In a report released yesterday, the EU executive describes as “unfair, slow and inefficient” pay down that have suffered mainly employees with temporary contracts. According to their figures, the salary adjustment of temporary accumulated a 20% drop so far this crisis, compared to a reduction of 5% in the case of permanent. “These data are not surprising if one considers the possibility of renegotiating [down] the salary at the end of fixed-term contracts,” he stresses.
In the paper, the organ of Government EU argues that temporary workers are doubly penalized: “They have been exposed to a greater risk of dismissal and have suffered a greater drop in salary.” Brussels also affects the timing differences of adjustment. “The pay cut started earlier and has been considerably higher in the case of temporary,” he says. The Commission and Spain paints a picture that fits perfectly with that outlined by the president of the ECB, Mario Draghi, in early September – “in some countries workers enter the labor market with wages eighties.” – In the publication, the European technicians, however, contradict the point that the salary adjustment of temporary “tripled” to that suffered by fixed when, according to the figures provided a few lines before, would have quadrupled.
The EU executive stressed that, since the onset of the economic crisis, the average skill of the labor force has increased, “double” in the group of temporary workers than among permanent. Brussels blames this phenomenon, among other factors, to a pattern of business decision based on the cost of firing -more low in the case of temporal boundaries- criminalizing level of technical training of workers and encourages employees with permanent contracts and senior finishers are retaining their jobs regardless of whether they are the most qualified.
The Department of Economics also recalls that the bulk of wage adjustment has focused on the last four years. “2009 was the last year that real wages increased, although the economic cycle already in downturn,” they said. Between 2008 and 2013 the Spanish economy lost 3.5 million jobs and the unemployment rate rose from 10% to 25%. The recipe for Brussels to stop this bleeding and reverse the trend remains the same as expressed in each package of specific recommendations: a second labor reform to end the duality in the labor market. “In light of the results, high duality can lead to an inefficient process of adjustment, which disproportionately penalize workers with temporary contracts,” he stresses. In other words, the EU calls for the umpteenth time that Madrid definitely homogenize the coverage of fixed and temporary
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