8 February, 2011UGT and CC.OO signed a social and economic tripartite agreement with the Spanish Government and employers' organizations CEOE-CEPYME. Thanks to the unions' efforts the Government revised its original approach based on EU imposed drastic adjustments plans foreseeing revision among others of the existing system of pensions and collective bargaining.
SPAIN: Following almost a year long fight and failed social dialogue culminating in a general strike last September 29, on February 4, 2011 Sindicato Unión General de Trabajadores (UGT) and Confederación Sindical de las Comisiones Obreras (CC.OO) signed a social and economic agreement with the Government and the employers' organizations Confederación Española de Organizaciones Empresariales and Confederación Española de la Pequeña y Mediana Empresa CEOE-CEPYME.
The negotiations of the agreement tool place during difficult times with Spain facing severe consequences of the global economic and financial crisis, including an unemployment rate exceeding 20 per cent. The Government, through the pressure from the business circles and the European Union, announced of its intention to revise the existing system of pensions, to eliminate the temporary unemployment program PRODI and to speed up the process of privatization of savings banks without proper consultation with trade unions. Thanks to the pressure from the unions, including the industrial action in September and a demonstrated readiness to continue with the actions, the Government had to revise its approach and agreed to start fair negotiations which resulted in the conclusion of the Social and Economic Agreement.
Commenting on the signed agreement UGT General Secretary Cándido Méndez said that, "it represents a substantial correction of the initial proposals of the Government because it is a general agreement that includes measures regarding pensions, active approaches in industrial policy, innovation and energy, commitment to modernize public administration and its scope is more comprehensive and more accurate than initially raised by the Government."
CC.OO General Secretary Ignacio Fernández Toxo explained that, "the agreement preserves the public pension system and the rights of workers and, especially, young people who enter the labour market. It's an agreement that looks to the future and is committed to the transformation of the Spanish economy; as it is not possible to get out of this crisis by reproducing the same growth patterns that brought about the crisis in the first place," Toxo added.
The new agreement enters into force in 2013 and will not affect existing pensions.