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The Government last an improvement of the respite contract is limited to the industry

The Ministry of Industry last a change in the conditions of the contract of relief. The measure will apply from the next 1 January and until the end of 2022 and

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The Government last an improvement of the respite contract is limited to the industry

The Ministry of Industry last a change in the conditions of the contract of relief. The measure will apply from the next 1 January and until the end of 2022 and will be restricted to the industry and, within it, the jobs linked to the production chain. The respite contract opens the door for workers close to retirement are removed partially years before reaching the legal retirement age. In exchange, the company may employ young people with lower salaries and, sometimes, with bonuses in their quotes.

The Government's proposal comes after repeated demands from the industry during the last two years and, especially, of the auto manufacturers, which used this model as one of their spearheads in order to improve competitiveness. In the last collective bargaining agreement sealed between employers and unions emphasized the need of a reform. Both parties considered it necessary to return to the conditions previous to 2011, when the Government introduced amendments to the Pensions Act with the aim of lowering the incentives for partial retirement, accompanied by respite contract, considering that it was a measure that had a significant impact on the resources that came in the box of Social Security.

That regulation became tightened in march of 2013, although it was introduced a transitional period until 1 January 2019 so as not to affect contracts that had been announced on those dates, the automotive sector, provided that they were provided for and included in conventions and plans of employment. That moratorium is coming to an end and the pressures have increased in recent months.

Industry has taken note of these demands and has been assumed, but with one big restriction: can only benefit the manufacturing industry and, of this, would be exempt from the employment services or administration. The measure will only benefit those workers who are assigned tasks that require physical effort or a high degree of care in assembly lines, point sources of the negotiation.

Although there would be some fringe earrings, representatives of enterprises and workers received last week the latest proposal of the Government, which could happen by the Council of Ministers next Friday. One of the conditions that the Executive aims to set to boost permanent hiring is that the company that is hosting to have, at the time of the request, with a 70% employment undefined in your template. That has been a point of friction between the Executive and the employer.

margins that are posed by the Government is that the reduction of working hours for the workers who Tombala want to prejubilar part is between 25% and 67% if the employee incoming is temporary. This last percentage is 17 points higher than the regulation approved in 2013 (50%) and which will come into force in 2019 to those sectors that are not the industry.

Discomfort in other sectors

The reduction of working hours may reach 80% if the company contracts indefinitely to a reliever to replace the retired part. Again, this condition is slightly more lax than is provided for in the next year for services or activities that are not linked to chains of production, which remains at 75%. In addition to these conditions, Industry also sets a limit on the working conditions of the reliever: the salary. The same sources explain that the contribution base of the new worker must be at least 65% of the regulatory base of the retiree. Silver: the salary of the young may not be more than 35% below the ultimate reference is taken to calculate the pension of the retired.

According to the latest Government proposal, a worker who wants to avail of this mode of partial retirement that allows withdrawals with 100% of the benefit— must have a minimum age of 62 years and 33 years quoted to Social Security or add to 61 years of age, and have generated contributions to the social security for 34 years and six months. As in the requirements above, these requirements are easier to meet than the legislation that affects the rest of the sectors, but more harsh than those required according to the legislation prior to 2011.

the decision of The Executive to improve only the conditions in the sector of the industry has generated some discomfort in the breast of the employers and the trade unions, who interpret the action as a tort for the rest of productive sectors. As explained by sources close to the negotiations, that discomfort is that which has caused the Ministry of Industry decided to take on the negotiations and the initiative, which could reach the Council of Ministers next Friday.

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