Tuesday, June 8, 2010

Spain's Labor Reform Could Sideline Unions: Report

Civil servants protest over planned pay cuts in front of the economy ministry in Madrid May 20, 2010.

Credit: Reuters/Andrea Comas


(Reuters) - Spain may make it easier for companies to bypass unions to lower workers' pay and conditions if they can prove they are in financial difficulty, El Mundo newspaper reported on Sunday, citing government sources.

Companies in financial difficulty can currently only negotiate down wages and conditions to below those established by the collective bargaining procedure if they have the approval of unions, which is rarely given.

But El Mundo said one of the Socialist government's drafts of labor reform due to be handed to unions on Wednesday says independent government commissions would be created to negotiate salary cuts between workers and employers in such cases