LOS ANGELES TIMES: REPORTING FROM MADRID -- Spain's new conservative government announced drastic changes to the country's labor system Friday, in some cases altering contract terms that have been untouched for 50 years, in a bid to bring down Europe's worst unemployment rate.
Under the new labor rules, companies doing business in Spain will be able to hire and fire workers more freely, negotiate pay independent of national contract mandates and score tax breaks for hiring people under the age of 30. Severance packages long deemed among the most generous in Europe will be cut by more than a quarter, from 45 days' pay for every year on the job to 33. Temporary workers -- a full third of the Spanish workforce -- will be entitled to permanent status, with better pay and benefits, after two years rather than the current three.
The Cabinet approved the measures by decree Friday, meaning they will go to lawmakers for a yes-or-no vote without the option of amendments. The ruling Popular Party holds a commanding majority in parliament, which likely will ensure quick passage.
Spain has Europe's highest jobless rate. Nearly one in four workers is unemployed; the figure tops 50% for people in their early 20s. » | Friday, February 10, 2012
