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The Government provided the following written information.

Convention No. 122, which was ratified by Spain in 1970, and which Spain has always shown a willingness to comply with and apply, provides that all Members of the Organization shall pursue an active policy designed to promote full, productive and freely chosen employment, with the participation of the social partners. Over recent years, significant steps have been made in Spain in this direction, with progress and results that demonstrate the beginning of a robust process of unemployment reduction and job creation in a new context of Spanish economic recovery. This change in trends is not only quantitative, but also qualitative. All this has taken place within the framework of social tripartite dialogue, in consultation with employers’ and workers’ representatives. The Government’s economic and employment strategy is established within the framework of the European Semester. Its policies correspond to the three main pillars of the Annual Growth Survey 2015 for the social and economic policy of the European Union (EU) for 2015. Two priorities which are mutually reinforcing should be highlighted: to complete the reforms that have been started and to promote economic recovery and job creation.

The decisions taken regarding active employment and vocational training policies can be understood in the light of the situation and characteristics of the Spanish labour market in December 2011, with its structural weaknesses and inefficiencies that the 2007 crisis only accentuated: the great rigidity in the adaptation of working conditions to the economic situation; the excessive segmentation or duality of the labour market; and the lower productivity per worker than our European partners. These structural problems, coupled with the intense economic crisis, were reflected in dramatic figures. Between the beginning of the crisis and December 2011, the unemployment rate rose from 8.6 to 22.9 per cent. The unemployed population rose to 3.3 million. Over 2.5 million jobs were destroyed, according to the Active Population Survey (EPA). The unemployment rate for persons under 25 years rose from 18.8 to 48.6 per cent. The long-term unemployed accounted for half of all unemployed persons. Permanent employment was falling in December 2011 at an annual rate of 22.5 per cent.

In this context, it was essential to adopt structural reforms, including labour reforms, to allow the economy to grow and generate employment. This reform agenda has enabled the Spanish economy to regain the confidence of the international markets and to gain efficiency, flexibility and the ability to compete. With the 2012 labour reform, a profound transformation of the labour market commenced in Spain which was very much in line with the concept of flexicurity that is prioritized in the EU employment guidelines: that is greater flexibility, but without prejudicing workers’ rights or the unemployment protection system, which is an essential part of our welfare state. This has been reflected recently in Constitutional Court Ruling No. 8/2015 of 22 January 2015, which definitively endorses the labour reform and rejects the notion that it violates the right to freedom of association, collective bargaining, work and effective judicial and constitutional protection. According to the estimates of the Ministry of Economy and Competitiveness, this labour market transformation helped to prevent the destruction of over 225,000 jobs during the first year following the entry into force of the reform. Furthermore, the labour reform has contributed for the first time to employment creation in Spain based on moderate economic growth rates. The data clearly reflect this closer relationship between employment and GDP. In 2014, when there was a change in the trend of this indicator, GDP growth over the whole year was 1.4 per cent and, according to EPA data, employment rose by 2.5 per cent compared with the previous year, that is by over 430,000 people. This pattern has been strengthened by the year-on-year figures for social security affiliation since February 2014 when, for the first time since 2008, total average affiliation rose, with over 417,000 more insured persons at the end of 2014 than the previous year, or an increase of over 2.5 per cent. It is important to emphasize that a fundamental effect of the labour reform has been, for the first time, the creation of employment in Spain based on moderate economic growth rates.

With the modernization of employment relations, it was important to modernize employment activation policies, with the main objective of developing a new employment policy framework within which all of its instruments are geared towards the activation and employability of workers to help ensure that the recovery results in quality and stable employment. Based on the intensive work of previous years, in September 2014 a package of measures was adopted to promote activation, including the new Spanish Employment Activation Strategy 2014–16. This Strategy establishes new working methods for all public employment services throughout the country over a multi-year framework. It includes common objectives, flexible and specific means of achieving them, and a new system of continuous evaluation and results-based performance. The overall objective is the modernization of public employment services. This action is reflected in annual plans, which coordinate and group together all the activities undertaken by public employment services each year in light of the common objectives. Since 2012 four plans have been adopted, and the last one was presented to the meeting of the Sectoral Conference for Employment and Labour Affairs in April 2015, with the Autonomous Communities. These plans set out what is being done and where, so as to compare and above all measure the impact of the various initiatives. To that end, in a particularly significant inter-administrative effort, a system of indicators has been developed, approved by all, to evaluate the results of the measures and, on that basis, determine the distribution of funds for activation policies, which are granted on an annual basis by the State to the Autonomous Communities. Accordingly, for example, the results achieved in 2014 determined the distribution of 60 per cent of the funds in 2015, or around €850 million. The activation strategy includes a series of elements that could be considered the “backbone” of employment services. For example, to facilitate the transition to employment, the Framework Agreement for public-private collaboration in job placement has been developed, in accordance with the Private Employment Agencies Convention, 1997 (No. 181), which defines a common architecture for the development of cooperation projects between the 14 employment services that have adhered to the Agreement and the 80 private job placement agencies that have been selected. The Single Employment Portal is in operation, which channels job vacancies from the various public employment services and private portals that have joined this project. In January 2015, the Common Portfolio of Services under the National Employment System was adopted which determines all the employment services to be provided throughout the country, to which all workers are entitled. For each of the services included in this Portfolio (vocational guidance, placement and advice for enterprises, vocational training and skills development, and advice for self-employment and entrepreneurship), the content and minimum common requirements have been established and work is already being carried out with the Autonomous Communities on the service protocols that will be adopted as a whole.

Young people are the worst affected by the recent crisis, with the youth unemployment rate rising to 51.4 per cent, or 382,012 young persons under 25 years of age, despite that figure having decreased by nearly 105,500 since 2011. Some of the initiatives launched to promote youth employment as part of the labour reform of 2012 include: the entrepreneur support contract of indefinite duration, which provides incentives of up to €3,600 for three years for the hiring of young persons on indefinite contracts – over 107,000 contracts of this type were concluded with young persons under 30 years of age in the period between the 2012 labour reform and April 2015; and the modification of the training and apprenticeship contract with the purpose of making it more flexible and geared to the daily requirements of enterprises and their training needs – more than three years after its modification, it is a consolidated instrument that paves the way for dual vocational training for young people, enabling them to be trained while in employment. In 2014, a total of 140,000 contracts were concluded, which was 32 per cent more than in 2013 and 130 per cent more than in 2012. During 2015, the pace of progress has been maintained, reaching the year-on-year figure of over 25 per cent. In the period between the 2012 labour reform and April 2015, over 355,000 training and apprenticeship contracts have been recorded. In 2013, the Spanish Youth Employment and Entrepreneurship Strategy 2013–16 was adopted, including 100 emergency measures, of which 85 per cent have already been put into effect. At present, over 400,000 young people under 30 years of age (402,908 persons as at 12 May) have benefited from the entrepreneurship or employment measures contained in the Strategy, in addition to the measures for training, guidance and improving employability implemented by the Autonomous Communities. A total of 66 per cent have benefited from a recruitment incentive and the remaining 34 per cent have benefited from measures for the promotion of self-employment and entrepreneurship, especially the €50 flat rate social security contribution for the newly self-employed. The upturn in the labour market is beginning to be felt by the young. In 2014, unemployment for the youngest (under-25) age group fell by 93,400, a 10 per cent reduction compared with 2013. It is the second year in which unemployment for the youngest age group has decreased, after constantly rising between 2007 and 2012. In 2014, the employment rate for this age group rose by 1.6 per cent, the first increase since 2006. In the context of the Youth Employment and Entrepreneurship Strategy, and in response to a recommendation by the European Council in April 2014, the National Youth Guarantee System was adopted in July 2014, under which young persons under 25 years of age who are either unemployed or not in the education or training systems can receive offers of employment or training. Through this system, electronic registration in the Youth Guarantee System has been introduced so that beneficiaries can obtain information on the measures available and the results achieved can be monitored and evaluated. In addition, a range of measures have been determined for implementation by the State and the Autonomous Community concerned, according to their respective competencies. These measures include those designed to improve the matching of labour supply and demand and to enhance the vocational skills of beneficiaries. As at 30 April 2015, a total of 48,576 young people were covered by the scheme. Moreover, the 2014–20 operational programme for youth employment has been developed, to which over €2,360 million has been allocated as assistance in launching action to promote labour market access for young people. On 13 April 2015, the Sectoral Employment and Labour Affairs Conference, with the participation of ministerial authorities and the employment advisers of the Autonomous Communities, agreed to extend the maximum age for access to the National Youth Guarantee System from 25 to 29 years, on an exceptional basis, until the rate of unemployment between the two ages, currently standing at 29.7 per cent, drops below 20 per cent. Finally, also of relevance in combating youth unemployment are the measures adopted to ensure greater coordination between employment policies and education policies. These include: establishing a more flexible procedure for streamlining the updating of the National Directory of Vocational Qualifications (vocational training diplomas and certificates of vocational competence); boosting vocational training that is better matched to the labour market and more effective, including the establishment of “basic vocational training” (vocational training in the education system has seen an increase from 462,492 students in 2007–08 to 793,034 in 2014–15, an increase of 71.5 per cent); combating early school drop-out through a specific plan for 2014–20 supplementing the education reform. In Spain, the school drop-out rate has fallen gradually from 31.7 per cent in 2008 to 21.9 per cent in 2014 (the intermediate commitment was therefore comfortably achieved). This decrease has been greater than the average achieved across the EU (where the rate fell from 14.8 per cent to 11.1 per cent).

The Extraordinary Programme for Employment Activation, which was adopted in December 2014 in the context of social dialogue and collaboration with the Autonomous Communities, is an illustration of the Government’s determination that the economic recovery should benefit as many workers as possible. It is aimed at categories whose needs arising out of the economic crisis are particularly acute, such as the long-term unemployed with family responsibilities who have exhausted the options available to them under the employment protection scheme and who meet the requirement of actively seeking employment. The Programme envisages activities that are designed to improve the employability of such workers so that they can return to the labour market, as well as time-based assistance in the form of financial support to enable them to benefit from activation measures. Moreover, the scheme is compatible with a contract for an employer, as an innovation that serves as a double incentive for both workers and employers. The Programme also responds to the need to provide personalized employment services and to improve the employability of those with the greatest difficulties in finding employment and who meet the requirement of actively seeking employment. One innovative aspect of the Programme is that the receipt of economic assistance can be combined with work, in which case the financial aid becomes an economic incentive for enterprises which take on unemployed workers.

Spain has for some time been facing the problem of the mismatch between the skills required by the economy and those possessed by workers. Although the country’s vocational training system, which each year trains over three million workers, with the participation of some 480,000 enterprises, managed to keep pace with requirements in a specific social and economic context since it was first set up in 1992, it has not adapted with the required flexibility to the ever more complex requirements of the economy. As early as 2012, the labour reform began a gradual process of transforming the vocational training system in which it opted deliberately for a form of training that could provide the skills required by the economy. It was at that point that the individual right of workers to training was explicitly recognized and that training centres were given direct access to funds that had previously been reserved for the social partners. This gradual transformation of the training system, which is also reflected in the management and financing of training schemes run by the social partners over the past three years, culminated in the recent reform of the vocational training system that was approved by Royal Legislative Decree No. 4/2015 of 22 March 2015. Some of the most significant features of the reform are as follows: it applies to all public administrations whose responsibilities cover employers and workers throughout the national territory, thereby promoting the necessary labour market unity; the social partners and collective bargaining continue to play a fundamental role; an efficient system of labour market monitoring and forecasting is to be introduced as part of a multi-year strategic plan to ensure that training is consistent with the present and future requirements of the economy and of workers; each worker will have a training account that will accompany them throughout their working life; training at the enterprise will be made as flexible as possible; the training provided through the public administration will be organized on a competitive basis and will be open only to training institutions; tele-training will be used to maximize efficiency and flexibility; the quality and impact of the training will be monitored on an ongoing basis to increase the productivity of workers and the competitivity of the enterprises; and a special inspection unit and a new endorsement system will be established, based on the principle of zero tolerance of fraud. These innovations will all be made possible by the development of a comprehensive data system to guarantee the traceability of training activities and the comparability, consistency and regular updating of all available information on vocational training. The adoption of the new vocational training model coincides with the increasing signs of economic recovery (six quarters in which GDP has risen steadily and an estimated annual growth rate of around 3 per cent between 2015 and 2018). It should be possible to translate these promising economic forecasts into tangible gains for the labour market through the greater employability of workers and greater competitivity of the enterprises. Judging from the various reforms and other measures introduced since the 2012 labour reform and from the benefits that they have brought, the application by Spain of Convention No. 122 constitutes a positive outcome in both quantitative and qualitative terms. Current monthly and quarterly data tend to confirm that the country’s economic and employment recovery is here to stay. This is the conclusion that can be drawn from the various sources that measure the labour market situation. According to the survey of the active population, in the first quarter of 2015, the number of unemployed fell by 488,700 compared with the previous year (minus 8.2 per cent year on year), the largest fall in unemployment since 2006. This was due in part to the creation of 504,200 jobs in that quarter, or a growth rate of 3 per cent since the previous year, which was higher than the GDP growth rate of 2.6 per cent. Spain has never before experienced such intense and rapid growth simultaneously in both employment and GDP. According to registered unemployment and social security affiliation, between April 2014 and April 2015, unemployment fell by over 350,000 (minus 351,285), the biggest year-on-year fall ever recorded (with an actual fall of 7.5 per cent, compared with the 12.5 per cent increase in unemployed workers recorded in May 2012). Over the same period, social security affiliation rose by almost 580,000 (plus 578,243), while the fall in unemployment over the last two years combined was over 650,000 (minus 656,177) and affiliation to the social security system exceeded 750,000 (plus 775,944). The underlying trend, as reflected in seasonally adjusted data, continues to be favourable. With the exception of July 2014, Spain has now experienced 24 consecutive months in which seasonally adjusted unemployment has fallen, something unheard of for the past 15 years. In seasonally adjusted terms, unemployment in April 2015 dropped by 50,160, the best figure for April ever recorded. Registered unemployment among young persons under 25 years of age has fallen over the past 12 months by 33,965, or 9.5 per cent year on year. Despite these encouraging figures, Spain still suffers from high unemployment. According to the estimates of the 2015–18 Budget Stability Programme, unemployment in 2015 is expected to be 22.1 per cent, and with an estimated GDP growth rate of around 3 per cent over the coming years, the unemployment rate should gradually fall to about 15.6 per cent in 2018.

In accordance with Convention No. 122, social dialogue has been a constant feature of the Government’s action during an especially intense period of reforms, in the course of which efforts have always been made to seek agreement with the social partners. This is because only with an instrument as powerful as social dialogue, together with the collaboration of everyone, is it possible to confront the biggest challenge facing Spanish society, namely employment. Although for the past three years people have not always agreed on their diagnosis of the country’s labour market, or on the best way to solve the problems posed in each case, all the parties concerned have made an effort to keep all channels and means of communication open. The Government of Spain is fully aware of the irreplaceable role played by the social partners, which is recognized in the Constitution and is of vital importance to the country’s democratic system. That is why, irrespective of the differences of view that may have occurred from time to time, the Government has consistently maintained a climate of dialogue with trade unions and employers’ associations, which necessarily contributes to the more effective defence of the rights and legitimate interests of both workers and employers. Social dialogue has thus become firmly established, both through meetings of ad hoc working groups and the competent bodies on which the social partners are represented, such as: the State Council for Corporate Social Responsibility; the General Council of the National Employment System; and the Board of the Tripartite Foundation for Vocational Training. The issues on which the social partners have engaged in dialogue and reached consensus include: the Entrepreneurship and Youth Employment Strategy; the Youth Guarantee Plan; the Corporate Social Responsibility Strategy; the introduction of changes in the vocational training subsystem; the annual employment policy plans; the regulation of occupational skills certificates for updating the national register and the amendment of the relevant decree; the training and apprenticeship contract; as well as more specific matters, such as (in 2013 and 2015) the reduction in the number of days of entitlement to agricultural subsidies and support. This systematically open approach to the exchange of views and proposals has also clearly contributed to the conclusion of other agreements on employment issues, such as: the Agreement on proposals for tripartite negotiations to strengthen economic and employment growth rates of July 2014; the Agreement on an activation programme for the long-term unemployed of 15 December 2014; and, after prolonged and intensive negotiations (although the document itself has never been signed) a new tripartite agreement on training. Account has also been taken of the countless proposals and combined analytical input of the social partners and other representative organizations of the self-employed, which have their own enterprises, training centres and experts.

In addition, before the Committee, a Government representative, referring to the information provided in writing, added that significant steps had been taken in recent years which demonstrated that the destruction of employment caused by the economic crisis had been curbed and that a robust process of reducing unemployment and creating jobs had started in a context of economic recovery. The change was qualitative as well as quantitative. The policies and reforms adopted by the Government had the principal objective of creating stable and high quality jobs in coordination with all economic and social policies. With regard to Article 3 of the Convention, the Government was not only holding prior consultations with workers’ representatives on the various standards and programmes that shaped employment policies, but also ensured their participation in various standing forums for discussion and social dialogue, at both the level of the State and the Autonomous Communities. All of the progress referred to had been achieved in the context of constant social dialogue during an especially intense period of reforms, in the course of which efforts had constantly been made to seek agreement with the social partners. Only through social dialogue and the collaboration of everyone was it possible to confront the biggest challenge facing society, namely employment. The Government was fully aware of the indispensable role played by the social partners. For that reason, irrespective of the differences of view that may have occurred, the Government had consistently endeavoured to maintain a climate of dialogue with trade unions and employers’ associations, which necessarily contributed to the more effective defence of the rights and legitimate interests of both workers and employers, with a more complete overview of the labour market so that it could respond to the needs of the economy, in accordance with the system of representation and dialogue established by the Government.

The Worker members recalled that the objective of the Convention to achieve full, productive and freely chosen employment was as topical as ever. The Convention was the main instrument providing guidance on cooperation and coordination of policies on employment at the national level, and viewed employment not as a hypothetical result of economic policies, but as the objective that these policies were to serve. In this regard, the Convention was directly linked to the Decent Work Agenda and was a governance Convention within the meaning of the 2008 Social Justice Declaration, alongside the Tripartite Consultation (International Labour Standards) Convention, 1976 (No. 144), under which governance was based on social dialogue, particularly regarding the revision of employment policies. The objectives of the Convention, in compliance with fundamental principles and rights, had also been reaffirmed by the 2009 Global Jobs Pact, the 2010 Conference Resolution on the recurrent discussion on employment and, more recently, the 2013 Oslo Declaration. Emphasis should also be given to the need to promote strategies that improved employment quality, closed the pay gap between men and women, helped jobseekers, targeting in particular young and older workers, and women’s work. A policy for full, productive and freely chosen employment within the meaning of the Convention thereby required compliance with the conclusions of the Oslo Declaration and the holding of effective consultations with the social partners before and whenever any changes were proposed. The case of Spain should also be analysed in the context of Employment Policy Recommendation, 1964 (No. 122), which provided that workers and their organizations should examine the relationship between employment policy and economic and social policy, with a view to making them mutually reinforcing, particularly regarding the quality of employment, gender discrimination, the precarious situation of young persons, the unemployed and social dialogue. At the European level, in 2013, the social partners had adopted, at the inter-occupational level, a declaration on the involvement of the European social partners in economic governance. The declaration called for the Member States and the EU to ensure that consultation with the social partners was held in a timely manner in order to enable them to make proposals and request analyses.

Recalling the conclusions of the Committee in 2013 on the case of Spain, the Worker members noted that the recommendation to promote sincere and constructive social dialogue among all the parties concerned to remedy the labour market situation had not really been put into effect. The temptation to hide behind economic governance in order to avoid the application of existing ILO standards and processes could not be tolerated. Social dialogue was also encouraged at the European level, especially under the Treaty on the Functioning of the European Union, and economic governance was not hierarchically superior to European or ILO standards. Despite the written information provided by the Government, social dialogue did not seem to be a permanent approach of the Government, which had not consulted trade unions on any relevant employment standards or the modification of the industrial relations framework, on the pretext of the urgency of the issues. Only a bipartite dialogue had been held in Spain, accompanied by a trend to decentralize collective bargaining. Despite the protests of the trade unions, the Government had failed to respond. Furthermore, within the framework of the 2015 annual employment plan, the trade unions had been issued with a final document, which had been formulated in cooperation with the Autonomous Communities, and none of their proposed amendments had been accepted, even though they had been submitted within the very short time limit that had been set. The same applied to the reform of the vocational training system. The General Union of Workers (UGT) and the Trade Union Confederation of Workers’ Commissions (CC.OO.) had concluded an inter-occupational agreement for 2015–17 with employers on employment and collective bargaining. The agreement focussed on establishing a fairer economic recovery following years of austerity which had had an adverse impact on wages, the quality of jobs and family incomes. The inter-occupational agreement was intended to boost domestic demand and job creation. Its success implied that the Government would respect the social partners and the agreements concluded with a view to improving working conditions. The Committee on Freedom of Association had, on very many occasions, and particularly in its report on Case No. 2947 on a complaint by Spanish trade unions, drawn attention to the fact that consultation with the social partners implied consultations held sufficiently in advance. In addition, the rules governing the industrial relations systems and collective bargaining needed to be approved insofar as by the most representative workers’ and employers’ organizations. The Spanish labour market was showing alarming signs of youth unemployment, which remained at over 50 per cent and required, for an effective response, the involvement of the social partners, and not only of civil society. Long-term unemployment, especially among the oldest and least qualified workers, also required appropriate measures, as it exceeded 49 per cent in a context of labour market segmentation that was only augmenting precariousness and poverty, and affecting social cohesion. There was an urgent need for dialogue with the social partners to evaluate the effectiveness of the measures in place and make them more accessible. Spain was faced with significant economic challenges and the urgent need to find a new basis for growth was not contested. This must nevertheless be carried out within a framework of structured consultation with the social partners in order to avoid the unbalanced approaches favoured by the Government over recent years. The objective had to be growth that created more and better quality jobs. The issues of training, education and the inclusion in employment of those who were most marginalized in the labour market needed to be prioritized and the Decent Work Agenda should be returned to the heart of economic policies, which was fully in accordance with the Convention.

The Employer members recalled that in 2013 the Committee had already expressed concern in relation to the deterioration of the labour market and recommended that the Government continue to evaluate, with the participation of the social partners, the impact of measures taken to overcome the crisis. In August 2013, the International Organisation of Employers (IOE) and the Spanish Confederation of Employers’ Organizations (CEOE) had welcomed the 2013 reform aimed at establishing a framework for future economic recovery, reducing macroeconomic imbalances, creating a favourable environment for the establishment and development of enterprises, improving competitiveness and productivity, and promoting the export sector. They had also welcomed the labour reform, which had been validated by the Constitutional Court. The reform was in line with the flexibility introduced in other European countries and was governed by the EU Stability and Growth Pact. Regarding youth employment, the Employer members also praised the Youth Employment and Entrepreneurship Strategy 2013–16, which contained 100 measures aimed at boosting employment for young people. They emphasized that the role of the Committee of Experts and the Conference Committee with regard to the Convention was to ensure that member States had the explicit intention of guaranteeing full and productive employment, that measures and institutions existed to attain that objective, that the social partners were consulted on the policies and measures and that review mechanisms existed. It was not within the competence of the Committee of Experts to assess the validity, effectiveness or justification for the measures adopted. The Convention was a promotional instrument which required governments to adopt an employment policy, but it did not specify the content of the policy. That was appropriate as the achievement of full employment required broad economic policies that took into account the political, economic and social context, inflation, and respect for human rights and private property. Job creation also presupposed the proper functioning of the labour market.

A Worker member of Spain said that, three years after the most aggressive labour reform that Spain had seen since the return of democracy, the unemployment situation in the country was dramatic. More than 5.5 million people, or 24 per cent of the population, were unemployed. Of those, 782,000 were under 25 years of age. Youth unemployment stood at 51 per cent. More than 3.3 million people had been unemployed for more than a year, accounting for 61 per cent of all those unemployed. One in four unemployed, on 1.4 million persons, had been looking for work for three years or more. There was a serious risk that unemployment would become structural. More than one million households had no income at all and 29 per cent of the population was at risk of poverty or social exclusion. The current labour market was driving inequality by imposing reductions in wages, massive unemployment and underemployment. Spain was one of the countries where inequality had increased the most as a result of wage gaps and poor quality jobs. The 2012 labour reform had made it easier and cheaper to dismiss workers and allowed employers to modify employment contracts unilaterally, and 60 per cent of dismissals lacked justification and sufficient legal protection. The Convention required the State to pursue an active policy designed to promote full employment. However, the fact that the national budget had been reduced by 48 per cent between 2010 and 2014 showed that full employment was not a priority for the Government. The deterioration in the public employment service also showed how little importance was given to the issue. With respect to the scope of consultation with workers’ organizations on employment policy, he said that there had been no place for negotiation either within the labour reform process or any other economic measure taken. This was reflected in the number of complaints and representations made to the supervisory bodies. In reply to the Employers’ allegations that the Committee of Experts and the Conference Committee were not competent to consider employment policies, he said that accepting such claims would lead to the conclusion that the ILO no longer had any raison d’être. Workers rejected that argument.

Another Worker member of Spain, speaking on behalf of the CC.OO. and the UGT, and with the support of the Workers’ Labour Union (USO), described the difficult situation in the labour market, characterized by a very slow fall in unemployment, the intolerable absence of protection of the unemployed and the rise in precariousness. Although the number of registered unemployed had increased, spending on benefits had dropped by €7.7 billion between 2010 and 2014, and that trend had continued in 2015. The result of such brutal cutbacks was that the coverage rate had fallen by more than 32 per cent, leaving 2 million unemployed with no protection whatsoever. As a result, the CC.OO. and the UGT were backing a proposed legislative initiative seeking to introduce a minimum income benefit. Data from the general social security system confirmed the huge deterioration in the quality of employment: over half (51 per cent) of those registered were employed on precarious contracts (37 per cent on temporary contracts and 25 per cent on part-time contracts). Of the contracts signed in May 2015, 95 per cent were temporary or part time. Moreover, job creation was only increasing in sectors with low added value. Despite triumphant speeches by the Government, reality showed that there had been no structural change to either the economy or employment. Bearing in mind that 4.2 million people were registered unemployed and that the actual unemployment figure had been estimated at 5.5 million by the active population survey, a reduction of 2.7 per cent was completely insufficient. To emerge from the crisis, the Government continued to promote a production model based on low-value services, with a very low and decreasing proportion of industrial activities, condemning people to precarious employment contracts on low wages, with significant seasonal fluctuations and not enough jobs to provide people with employment opportunities. Against that backdrop, a budgetary policy was needed that fostered structural change in the production system, promoted the efficient use of public resources at all levels in the administration, and helped to boost domestic demand. Public investment must be increased and redirected towards improving the quality and technological level of enterprises. New measures were also urgently needed to improve protection for unemployed people, particularly the long-term unemployed with family responsibilities, as suggested in the ILO report Spain: Growth with jobs. In conclusion, she emphasized that it was time to do away with the mistaken notion that dismantling labour rights or collective bargaining would improve the labour market, that cutting public spending would create a more efficient public sector, that any job was a job even if it did not allow workers to escape from poverty and that slashing wages was the way to build a competitive economy.

The Employer member of Spain observed that the economic crisis of recent years had had very serious consequences for the labour sector. At the end of 2011, unemployment in Spain stood at 24 per cent of the active population and 48 per cent of workers under 25 years of age. The Government had accordingly appealed to the social partners to engage in social dialogue to reach an agreement that would serve as a basis for the reform of the country’s labour legislation, which was obviously needed. During the period of intense negotiations that followed, it had regrettably not been possible to reach an agreement. As a result, the Government adopted Royal Legislative Decree No. 3/2012 issuing urgent measures for the reform of the labour market, to generate employment through strong measures. Spanish employers were very much in favour of the reform which was consistent with the employment policy of the European Union and that helped to modernize Spain’s labour legislation by bringing it more into line with the flexibility prevailing in the surrounding countries. The employers would have liked the reform to have brought working conditions in Spain even closer to the conditions in those countries. Employment figures were now positive and that tended to support the reform: in April unemployment fell by 120,000, and in May by a further 117,000. The European Union and the Organisation for Economic Co-operation and Development (OECD) had also made a positive assessment of the reform, which they saw as favouring employment creation. Social dialogue was an important feature of democracy in Spain and was part of its culture. He referred to some of the significant achievements of social dialogue since the 2012 labour reform which showed that not only had it taken place, but that it had clearly been fruitful. The beginning of 2013, for example, saw the negotiation of the Entrepreneurship and Youth Employment Strategy. On 18 March 2014 an agreement had been reached with the Prime Minister and with the leading representatives of workers’ and employers’ organizations to promote measures aimed at changing the economic cycle, creating employment and increasing social cohesion. On 29 July 2014, a tripartite agreement had been concluded on proposed tripartite negotiations on raising economic and employment growth rates. That in turn had given rise to a 15 December 2014 agreement on the extraordinary employment activation programme to promote the employability of unemployed workers with special needs. Finally, although the best outcome of social dialogue was the conclusion of an agreement, dialogue could also be intense without necessarily leading to such a result. Linking the existence of social dialogue to its outcome did not properly reflect its essence.

The Government member of France, also speaking on behalf of the Government members of Croatia, Cyprus, Germany, Italy, Luxembourg, Portugal, Romania and Slovenia, indicated that these countries were engaged in a coordinated approach at the EU level for the implementation of active policies aimed at full, productive and freely chosen employment and to combat unemployment. The efforts made by Spain were fully in line with those undertaken in the framework of the European Employment Strategy, and Spain was also committed to combating and overcoming the negative effects of the economic and financial crisis, in full consultation with the social partners. The Government should be encouraged to continue its efforts in this regard, in accordance with the values and principles of the ILO, to which Spain was particularly attached, as shown by the number of Conventions it had ratified. Without social dialogue, it was clear that there could be no sustainable solution to the labour market problems in Europe. Moreover, he emphasized that the ILO needed to play its full role in ensuring that the social issues relating to international labour standards were taken into account in multilateral systems through enhanced cooperation with other international organizations, and specifically economic and financial institutions.

The Employer member of the United Kingdom emphasized the need to view Spain’s compliance with the Convention in the context of the ongoing economic crisis. It was also necessary to recall that Spain’s labour law reforms had been introduced within the framework of the EU Stability and Growth Pact, which placed emphasis on the reduction of the public deficit and debt when the latter grew excessive. He observed that the Spanish economy had started to recover in the second half of 2014 and gross domestic product (GDP) growth of 2.5 to 3 per cent was expected in 2015. Social dialogue was also thriving, although it did not always result in agreement. In this connection, he expressed confidence that Spain would continue to evaluate its employment and social policies with the social partners. The problem of youth unemployment was a multifaceted one that Spain was taking steps to address. He questioned whether the Committee of Experts had the competence to supervise Spain’s policies on youth unemployment, which in his view were a matter of national sovereignty. He also maintained that the Committee of Experts lacked the competence to question the rulings of the Spanish Constitutional Court, which had supported Spain’s 2012 labour reforms. It was of concern to note that Spain had appeared before the Conference Committee twice in the last three years for failure to apply the Convention. Supervision of the application of the Convention by the Conference Committee was not appropriate, and in the years to come Spain should not appear again on this subject, particularly in view of its ongoing constructive dialogue with the Committee of Experts.

The Worker member of Germany expressed support for Spanish workers. The serious economic crisis also affected society and the negative social effects of austerity policies affected the health, welfare and pension systems. A large proportion of the population lived with precarious jobs, such as short-term contracts, and increased job insecurity was prompting many young people to leave the country. Some employers were particularly creative in crafting flexible contracts which caused inequality because workers were not properly remunerated. The situation resulting from excessive contract flexibility was in contradiction with the principles of fair pay, fair working conditions and fair working time, and challenged the concept of decent work promoted by the ILO since its establishment in 1919. Precarious jobs generated inequality and poverty and better social dialogue was crucial to solve this problem.

The Employer member of Germany said that the economic crisis of 2008 had revealed, among other things, structural weaknesses and rigidities in Spain’s labour market. It was both just and important that in addressing the crisis Spain should reform its labour market to increase employability and combat long-term unemployment. She maintained that Spain was fulfilling its obligations under the Convention, and doing so in a manner consistent with the principles laid down in the Oslo Declaration to which the Employer members had referred. The positive effects of the policies that Spain was pursuing could readily be observed: over the previous year, for instance, half a million new jobs had been created. She welcomed the results Spain had achieved in promoting employment, and said that the Government should be encouraged in its ongoing efforts to reform the labour market and pursue fiscal consolidation.

The Worker member of Sweden, speaking on behalf of the Worker members of the Nordic countries and Estonia, noted that almost a decade of economic hardship and austerity measures had had a negative impact on society. Unemployment was at historically high levels, especially for young people, many of whom had to leave the country in search of a better future. Furthermore, a large proportion of the population had precarious contracts, such as short-term contracts. She maintained that these challenges should be addressed through active labour policies serving the interests of both workers and employers, and that they should not be used as a pretext for dismantling social policies. She emphasized that international labour standards were to be complied with also in times of economic hardship. The EU had launched the Social Investment Package in 2013 with the aim of supporting social policy measures and spending, especially for youth, such as education and support for the transition from education to employment. She urged the Government to provide the information requested by the Committee of Experts, and to take concrete action to reduce youth unemployment, facilitate the entry of young people into the labour market and invest in better education and training programmes.

The Employer member of France emphasized that the 2008 economic crisis had caused a major deterioration in the labour market in Spain, which had in turn resulted in an increase in the national debt, which had obliged the Government to establish a fiscal consolidation plan. The crisis had resulted in significant unemployment, but as a result of the efforts made by everyone, there was now a substantial recovery of economic growth and a reduction in the public deficit. Since 2012, structural reforms had been introduced to create a climate conducive to the creation of enterprises, and therefore to job creation. The national programme of reforms presented in the context of the European Semester in 2013 and Spain’s employment strategy would result in a substantial recovery and a fall in unemployment. In March 2014, a tripartite meeting had been held to exchange views on the measures that needed to be taken to promote growth and economic recovery. The Government had adopted numerous measures to promote youth employment, particularly in the fields of training and apprenticeship. The platform for tripartite social dialogue on the future of vocational training launched in May 2013 had been a positive step. Although several agreements on training had been concluded between the social partners since 1992, the CEOE was open to dialogue to adapt them to current economic and social needs. The measures that the Government had taken showed that it was in compliance with the Convention and it should be encouraged to continue its efforts to consolidate growth and therefore return to full employment.

The Employer member of Belgium noted that the 2008 economic crisis had obliged all stakeholders to make major efforts to return to economic growth and employment. In that regard, the structural reform of the labour market that had been introduced was beginning to bear fruit. Both the planning of the reforms and their implementation had involved constant consultation with the social partners. However, it was understandable that the social partners did not all see eye to eye, especially when it was necessary to take measures that were painful. She believed that Article 3 of the Convention was not intended to undermine the sovereignty of States when taking the necessary decisions and that, in the circumstances, the Government had been in full compliance with the Convention.

The Employer member of Italy observed that Spain was pursuing the objectives of the Convention in an extremely challenging context, namely that of the ongoing economic crisis which was also affecting her own country, Italy. The structural weaknesses of Spain’s labour market had been magnified by the crisis, and could only be addressed within the framework provided by the EU Stability and Growth Pact. The detailed information provided by the Government representative amply demonstrated that the country was on the right track in terms of addressing the inefficiencies in the labour market while pursuing economic recovery. Moreover, the strategy of addressing unemployment and labour market dualism through a flexicurity approach, which sought to increase employability while maintaining protections for workers, was commendable. Noting with approval the Government’s willingness to maintain channels of dialogue with the social partners, for the formulation and implementation of employment policies, she said that the Government should be encouraged to continue with the labour market reforms that had already begun to yield positive results.

The Worker member of Greece, also speaking on behalf of the Worker members of France and Portugal, recalled that the Convention set full, productive and freely chosen employment as the key objectives of employment policies. In particular, Article 3 of the Convention established the requirement for social dialogue and the Committee of Experts regularly emphasized the importance of full cooperation with the social partners in formulating and implementing employment policies. Furthermore, the 2010 General Survey on employment instruments and the report of the Committee on Freedom of Association of March 2014 considered social dialogue to be even more essential in times of crisis. She regretted that the Government, while recognizing the vital constitutional role of trade unions and social dialogue, refused to consult the social partners on the adoption of laws and regulations which profoundly affected employment standards and the industrial relations framework. In particular, during the parliamentary debate on the adoption of the 2012 labour market reform, the Government had claimed that there was no need or obligation for social dialogue to validate the agreements. Regardless of the fact that in 2013 the Conference Committee had urged the Government to intensify its efforts to reinforce the social dialogue process, a number of laws and decrees had been enacted without prior social dialogue and the entire labour relations system had been modified unilaterally. In this regard, she regretted that the Ministry of Labour had ignored the letter of complaint from the two most representative trade unions calling for the restoration of social dialogue and that it had rejected the observations of the trade unions on three key employment policy initiatives, namely the 2015 annual employment policy plan, the employment activation strategy and the common portfolio for public employment services. She also deplored the fact that the employment training framework had been modified without seeking agreement with the social partners. She emphasized that the social partners were striving to maintain bipartite dialogue, as demonstrated by the 2015–17 Employment and Collective Bargaining Agreement, while the Government was sidelining tripartite social dialogue, undermining bipartite social dialogue and disrupting collective bargaining structures. In conclusion, she urged the Government to comply with the Convention.

The Employer member of Denmark said that, while it was important to address the impact of the economic crisis on workers and their families, it was also necessary to address the need for labour market reform, as the Government had done. In view of all the information placed at the disposal of the Committee, it appeared that the Government was fulfilling its obligations under the Convention, and in a manner consistent with the principle of social dialogue. The Convention itself provided that employment policies should take due account of economic development, which was precisely what the Government had done. Those policies had also already begun to yield results, although much more needed to be done. With respect to the request by the Committee of Experts that social dialogue be reinforced, he maintained that there was no evidence to suggest that social dialogue had not been properly undertaken, apart from the fact that trade unions were not satisfied with its outcome. While affirming the importance of social dialogue as a foundational ILO principle, he nevertheless emphasized that the right to participate in dialogue was not a right to veto labour market reform. He said that social dialogue often resulted in labour market policies that failed to fully reflect the priorities of employers, but employers were regardless obliged to live with them. Consequently, the trade unions also needed to accept their responsibilities and participate in the much-needed reforms.

The Worker member of Argentina said that the Confederation of Workers of Argentina (CTA Autonomous) supported the Spanish trade unions in their fight to preserve what had been won and resist the loss of their rights. The majority ruling by the Spanish Constitutional Court had found that the labour reform of 2012 provided not only for reinstatement, but also the payment of adequate compensation as one of the possible outcomes of unjustified termination of the employment relationship. Similarly, Ruling No. 119/2014 of July 2014 had set aside an appeal to find contracts involving a probation period of one year unconstitutional. The ruling had justified the purpose of such contracts on the grounds that the promotion of full employment prevailed over the rights potentially acquired during a probation period. It therefore departed from the conclusions of the report by the ILO tripartite committee which had examined the representation made in 2012 by the Spanish trade unions regarding the Termination of Employment Convention, 1982 (No. 158). It should be noted that the Constitutional Court had not considered the observations of the ILO supervisory bodies in response to the complaints made by the Spanish trade unions concerning fundamental aspects of the reform, despite the fact that under article 96 of the Spanish Constitution, international treaties were part of national legislation and prevailed over domestic labour laws. The 2012 labour reform had introduced flexibility into the principle aspects of individual labour rights and significantly weakened collective bargaining, giving priority to enterprise bargaining over branch and regional agreements. During the first phase of the crisis, the destruction of jobs had mainly affected temporary contracts as a result of their greater flexibility. In the second phase, which had coincided with the adoption of the labour reform, the destruction of permanent jobs had increased considerably compared with temporary employment, in relation to previous years. The 2012 labour reform not only gave employers undisputed authority by reinforcing their unilateral power, thereby tipping the increasingly unstable balance between labour law and the free market, but also sought to weaken the trade unions. These rulings, in addition to reinforcing the breakdown of the consensus forged by the Spanish Constitution in relation to the system of labour relations, bolstered the subordination of workers’ rights to purely discretionary political considerations.

The Employer member of Colombia said that the case had been examined by the Conference Committee and by other supervisory bodies, and that their conclusions had always demonstrated the need to respond urgently to a severe crisis. The fact that 26 per cent of the active population and over 50 per cent of young people in Spain were unemployed, combined with the country’s severe public deficit and public debt, created a serious situation that called for urgent decisions. The Committee of Experts in its last observations had therefore called for further efforts to strengthen social dialogue. The Government had taken measures to reduce macroeconomic imbalances and to support the establishment and development of enterprises. The urgent measures adopted by the Government had been analysed in detail by the Constitutional Tribunal and in several EU forums. As a result of those measures, the number of affiliates of the social security system had increased significantly in May 2015. The OECD had revised upwards its economic growth forecast for Spain from 1.7 to 2.9 per cent for 2015, and from 1.9 to 2.8 per cent for 2016. Similarly, the unemployment rate was decreasing and agreements had been concluded between workers and employers on the appropriate regulation of wages.

The Government representative said that unemployment in Spain was a social problem that could not be disguised. The number of people employed in 1996 had been the same as in 1976, which showed that employment had not been created in the first 20 years of democracy. In 1996 a job creation process had begun, but had been insufficient. The trend had been broken by the economic crisis of 2007, when unemployment had begun to rise. The Government had been obliged to resort to automatic stabilizers, but the crisis had turned out to be more serious than anticipated. In order to combat the situation, other types of measures had been adopted as part of the 2012 labour reform, the aim of which had been to promote job creation and improve the capacity of the labour market to adapt. Spain was in compliance with the Convention. In 2014, the country had topped the eurozone figures for unemployment reduction and job creation, demonstrating the positive impact of the 2012 labour reform and subsequent measures. In the last 12 months, unemployment had fallen by 488,700, the largest annual reduction since 2002. In addition, year-on-year employment had risen by 504,200, a rate of 2.97 per cent above growth in GDP. At the same time, the 2012 labour reform had made the labour market more flexible, but this flexible approach had not been at the expense of job security. Flexibility did not imply precarious work, but placed the emphasis on the worker rather than on the job. It was notable that permanent contracts were on the increase. In 2006, two in three contracts had been permanent, but by 2013 the figure was three in four, which meant that Spain was doing better than the EU average. The improvement in employment was thus not only quantitative, but also qualitative. Moreover, Spain was the second-highest OECD country in terms of spending on active and passive employment policies. One example was the PREPARA programme, an active policy measure that included economic assistance. More recently, the Employment Activation Programme, approved in December 2014, which targeted a category with special needs resulting from the crisis, as was the case with the long-term unemployed with family responsibilities who had exhausted their entitlements under the unemployment protection system at least six months earlier. These programmes were not a Spanish invention, but were based on the experience and possibilities offered by its European partners. It was over 15 years since there had been 24 months of continuous job creation in Spain. This reduction in unemployment was due not only to the actions of the Government, but also to social dialogue, which remained a constant feature of the country.

The Employer members said that the discussion in the Conference Committee highlighted the need to develop active employment policies, in accordance with the requirements of Article 1 of the Convention. The information provided by the Government showed that it was complying with the Convention, starting with Article 1. In that context, the 2012 labour reforms had introduced urgent measures to generate employment and overcome the crisis. The policy pursued by the Government was in line with the EU’s Stability and Growth Pact, to which Spain had signed up. In the European context, the Government could not take action in isolation, but must coordinate with all other EU Member States. In accordance with Article 2 of the Convention, the Government’s employment policy was an integral part of a coordinated and coherent policy at both the national and regional level. The Employer members emphasized the importance of the rulings of the Constitutional Court which fully supported the labour reforms introduced by the Government, and implied that it was not for the Committee to make further comments on those reforms. In addition, other measures had been taken to give effect to the Convention, such as programmes aimed at the most vulnerable groups, including young people and the long-term unemployed. At the same time, a gradual transformation of the vocational training system was under way to make it more effective in meeting employment policy objectives. All this was being done in full compliance with Article 3 of the Convention, which required consultation with the social partners on the measures to be adopted. Social dialogue was a means of reaching agreement, but not an end in itself. So far, results had been achieved, such as an agreement on proposals for tripartite negotiation to strengthen economic growth and employment, concluded on 29 July 2014, and an agreement on an activation programme for the long-term unemployed, concluded on 15 December 2014. Lastly, the COEO, the CC.OO. and the UGT were finalizing negotiations with a view to concluding the third agreement on employment and collective bargaining, which would establish guidance on wage increases, as well as on matters relating to job stability for young people. These agreements were specific examples of social dialogue on active employment policies. However, the content of such agreements was specific to each State and it was therefore not for the Conference Committee to analyse the manner in which they should be applied in practice. Various representatives of OECD and EU countries had commented positively on Spain’s labour reforms. As such, data reflecting these improvements should be included in the conclusions to the case, highlighting the progress achieved, while recognizing that there was room for improvement.

The Worker members emphasized that the numerous interventions on the case offered clear evidence that the Committee was amply fulfilling its role of examining the application of the Convention. They also welcomed the importance attached by Employers to joint collective bargaining on employment issues. Since the adoption of the Convention in 1964, the world of work had had to face two major crises, one at the end of the 1970s and another during the 1980s, which had resulted in mass unemployment in industrialized countries, and the growth of inequality in a context of globalization and deregulation in which social standards had become the poor relations of the economy. In these circumstances, the ILO had taken the initiative to set up the World Commission on the Social Dimension of Globalization and to adopt the 2008 Social Justice Declaration. In 2009, in response to the current global financial and economic crisis, the ILO had adopted the Global Jobs Pact with the support of all of its constituents. The Pact, the objective of which was to bring the real economy back to the centre of economic policies, emphasized the need to respect fundamental rights and principles at work, as well as a series of international labour Conventions. In accordance with the Pact, the economy needed to be at the service of decent employment and domestic demand, thereby ensuring the sustainability of enterprises. The concept of sustainable enterprises supported by the employers needed to have as a corollary the sustainability of employment and the existence of quality jobs. Unfortunately, those demands of the Pact would appear to have been forgotten since then, especially in Europe, where social dialogue and collective bargaining were often sidelined in view of the urgent need invoked by governments to respond to the economic crisis, as shown by the conclusions and recommendations of the Committee on Freedom of Association’s in several cases. Case No. 2847 concerning Spain emphasized the importance of holding detailed tripartite consultations so that national legislation and economic and employment programmes could benefit from a firmer basis and be applied more effectively. The Worker members noted with interest the comments of the Employer member of Spain, who had expressed appreciation of the Government’s economic and employment policy. Even though the workers differed in their assessment of the policy, the differences of opinion expressed showed that the Committee was fully exercising its mandate in examining the application of the Convention on the basis of the observations of the Committee of Experts. Regarding the rulings of the Constitutional Court on the labour reform, it was surprising that the Court had not paid any attention to the need to comply with the relevant ILO Conventions ratified by Spain and the European Social Charter. The Court’s ruling, which had been highlighted by the Employer members, had in fact given rise to a dissenting vote very convincingly argued by three of the judges. The concept of “flexicurity”, had not been taken up in any European directive, and there was no unambiguous definition approved by EU Member States or the social partners. The reference to flexicurity could not justify disregarding ILO standards or imply, through the mere mention of the term, that the requirements of the Convention were being met. In accordance to the Convention, active employment policies had to play a fundamental role in macroeconomic policies, with particular attention being paid to the formulation and implementation of these policies. The examination of the Convention therefore went further than formal recognition that such measures did or did not exist, and necessarily entailed an examination of the substance of employment policy. While it was in no way intended to question the existence of European governance, the fact remained that the EU was not above ILO standards, nor was it above the European Social Charter. In the discussion on this case, the Worker members had felt that it was necessary to follow the conclusions adopted by the Committee in 2013. They accordingly asked the Government to return to the path of tripartite social dialogue and to discuss with the social partners the formulation of an employment policy that was in conformity with the objectives of the Convention. Those consultations should be held before any decision was taken so that there was a genuine opportunity to make counter-proposals. Under Article 2 of the Convention, the Government was required to continue to assess with the social partners the results of the employment policy and of the amendments to labour market legislation. It should also endeavour to ensure that there was broad consensus on programmes related to training, especially for workers with particular difficulties in finding employment and young people, based on strong public services. The Worker members concluded by calling on the Government to accept the technical assistance proposed in 2013 and to inform the Committee of Experts at its next meeting of the steps taken to meet its obligations under the Convention.

Conclusions

The Committee took note of the detailed written and oral information provided by the Government representative on the discussion that followed on the issues raised by the Committee of Experts related to the measures adopted to mitigate the impact of the crisis, the situation of a persistent unemployment which principally affects young persons and the labour reforms adopted which included programmes to coordinate educational and training measures with employment opportunities and to improve skills levels.

The Committee noted the information provided by the Government representative concerning the comprehensive economic and employment measures taken by the Government to overcome the jobs crisis and the labour reforms initiated in March 2012 in line with the concept of flexicurity prioritized in the European Union employment guidelines. The Committee noted the active labour market measures taken, such as the Spanish Employment Activation Strategy 2014–16, the Single Employment Portal and the Common Portfolio of Services adopted in January 2015 to promote the use of public and private employment services. Youth employment remained extremely high and an Extraordinary Programme for Employment Activation was adopted in December 2014 specifically targeting workers whose needs arising out of the jobs crisis were particularly acute, such as the long-term unemployed with family responsibilities. The Government representative also provided information on positive employment data indicating that, in the first quarter of 2015, the number of unemployed persons fell by 488,800 when compared with the previous year, and that 504,200 jobs were created in that same quarter.

The Committee took note of the complete information provided by the Government on the active employment measures that were being implemented in the framework of the Economic and Employment Strategy adopted in the context of the European Union to combat unemployment and the social consequences of the crisis.

Taking into account the discussion, the Committee requested the Government to:

• continue a constructive social dialogue, taking fully into account the experience and views of the social partners with their full cooperation in formulating and enlisting support for such policies concerning the objectives expressed in Article 1 of the Convention;
• consistent with the Convention, evaluate, together with the social partners, the results of employment policy and take such steps as may be needed including, when appropriate, the establishment of programmes for the implementation of the employment policy;
• focus on guaranteeing the largest consensus on programmes linked to vocational training and continue the dialogue with the social partners on vocational training for youth and the unemployed on the basis of strong public services; and
• submit a report to the Committee of Experts in 2015 on the application of the Convention.

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The Government provided the following written information.

The Convention provided that each ILO Member shall pursue an active policy designed to promote full, productive and freely chosen employment, with the participation of the social partners. The Government’s economic and employment strategy had been established in the context of the European Semester, and its actions correspond to the priority areas identified in the Annual Growth Forecast 2013. A particular objective is to tackle unemployment and the social consequences of the crisis and also achieve the objectives of the Europe 2020 strategy. The reform of the labour market had entered into force in February 2012, and had been adopted by Parliament in Act No. 3/2012 of 6 July 2012. The labour market reform established a new framework for labour relations with a view to modifying the dynamics and adjustment pattern of the Spanish labour market, thereby constituting a key aspect of preparing the way for jobs-oriented economic recovery. Its prime objective was to promote internal flexibility measures through instruments that enable enterprises to adapt to economic circumstances without causing massive job losses and to improve the employability of workers. Monitoring of the reform would continue in 2013 through the groups and committees established and an interim evaluation report on its outcome would be drawn up by an independent body, the Organisation for Economic Co-operation and Development (OECD) during the first year of implementation. It would be published once the data from the active population survey for the first quarter of 2013 had been analysed.

Active employment policies were a new strategy designed to improve employability, especially of the youngest workers. In Spain in 2012 they had followed, and would continue to follow in 2013, a new strategy based on the following five major areas of action, agreed upon with the autonomous communities at the Sectoral Employment Conference of 11 April 2013.

Institutional aspects: Coordination, evaluation and efficiency. The Annual Employment Policy Plan 2012 was a fundamental landmark for establishing proper coordination between the various competent administrations (Autonomous Communities and the state administration) and the progressive establishment of a culture of evaluation with regard to active employment policies. During 2012, the autonomous communities, in order to determine actions under the funds distributed by the Public State Employment Service, had to follow the six priority objectives of the Annual Employment Policy Plan, namely: reducing the youth unemployment rate; improving the employability of other groups affected by unemployment; supporting entrepreneurs through job-creation measures and sustaining them in the labour market; strengthening public–private partnerships to reinforce the search for jobs for unemployed persons; developing measures to promote employment for specific groups, with a special focus on persons with disabilities; and taking action against fraud. Moreover, the Plan incorporated, as an innovative element, indicators to show the degree of compliance with the objectives established and the evaluation of actions taken. In October 2012, through an agreement reached at the Sectoral Conference between the Ministry of Employment and Social Security and the autonomous communities, a working party had been set up to evaluate the active policies that had been implemented. During 2012, a total of 82 coordination meetings had been held. As a continuation of the 2012 strategy, the second quarter of 2013 of the Employment Policy Plan 2013 would be adopted, the main content of which had been discussed at the state-autonomous communities Sectoral Conference held in April 2013. The 2013 Plan would strengthen incentives to achieve improved efficiency through a results-based approach. The priority objectives and measures of the 2013 Plan, which would be adopted before the end of the first half of the year, would be established on the basis of the results of the evaluation which was currently in progress. Those results would determine the new distribution of funds among the autonomous communities for pursuing active employment policies, which this year amounted to €1.345 million, 15 per cent of which would be distributed among the Autonomous Communities according to the established objectives. The Autonomous Communities were collaborating in the formulation of the monitoring indicators which would determine this financing. The strategic objectives used to formulate the indicators were: improvement in the employability of young persons and support for entrepreneurship; improvement in the employability of other groups specially affected by unemployment (especially the long-term unemployed and workers over 55 years of age); improvement in the quality of vocational training for employment; and improvement in the linkage between active and passive employment policies.

Linkage between active and passive employment policies (activation). This was a question of reinforcing mechanisms designed to ensure that the recipients of unemployment benefits met their obligations relating to work and training in an appropriate and effective way. During 2012, the regulations on unemployment benefits and allowances were changed by introducing increased supervision of recipients’ compliance with their obligations, accrediting active job seeking and action to improve employability. The year 2013 would also see the introduction of innovative IT methods and tools which had proved effective in other spheres (taxation, social security, finance, etc.), as well as identifying possible sources of additional information with databases enabling the expansion and optimization of current procedures and improved detection of non-compliance with active job seeking and training obligations by benefit recipients.

Improvements in job placement services. With the aim of better matching employment supply and demand and facilitating actuation of the unemployed, the focus was being placed on measures intended to improve the quality of information and draw on the experience of private employment agencies. During 2012, the development of the Single Employment Portal had begun. This initiative, to be completed in 2013, consisted of the creation of a common database for the whole country which includes all training and employment offers managed by public, national and autonomous employment services, including European and international offers, those submitted directly by enterprises, public employment offers and those originating from other sources (such as employment agencies). Public–private partnership in the sphere of job placement services had been launched. A framework agreement had been established which had been adopted by the Autonomous Communities for the selection of job placement service providers. The aim was to ensure uniform conditions throughout the national territory to facilitate the coordination of the public–private partnership. Furthermore, the partnership will be results-based; in other words, private agencies would be remunerated according to the characteristics of the unemployed person and the duration of the employment provided. The Autonomous Communities (14 out of the 17) had expressed their willingness to adopt this public–private partnership model (Sectoral Conference of April 2013). The model was expected to be operational by the end of October 2013.

Increasing employment opportunities through training. In order to improve employability and integration into the employment markets, in particular for the youngest workers, the focus had been placed on training measures in 2012 and 2013. The objective was to provide training that facilitates access to the labour market, for which it was crucial for such training to be geared to the needs of the productive sectors. Moreover, it was important to promote training activities which also contained the possibility of gaining occupational experience. The labour market reform adopted in February 2012 had established a new training and apprenticeship contract leading to a vocational qualification. The regulations governing such contracts and their application had also been accompanied by the establishment of a dual system of vocational training, which was already operational, for which there would be a new development strategy for 2013–15. The strategy would be accompanied by a process for monitoring the quality and impact of dual vocational training, which would result in an intermediate evaluation (due in the second half of 2014) and a final evaluation (second half of 2015). In the context of social dialogue, the training round table was revising the training model for employed and unemployed workers, funded with public resources, which aimed to promote skills among training service providers and identify priorities in the productive sectors, so that more effective use was made of the public resources concerned. The new model had already become operational in 2012 and would continue in 2013. As part of the Youth Employment and Entrepreneurship Strategy 2013–16, negotiated with the social partners, measures had been adopted to improve the vocational qualifications and employability of young people: training programmes leading to certificates of vocational competence or promises of employment – at least 30 per cent of participants in such training programmes could qualify for such promises; incentives for unemployed persons to acquire compulsory secondary education; and a reform of the legislation relating to certificates of vocational competence would be conducted in 2013. In order to adapt these certificates to the new dual vocational training model, the basic legislation had already been amended and the National Directory of Vocational Competence Certificates would be published, and updated following the revision of 585 vocational competence certificates in 2012.

Promotion of youth employment and entrepreneurship. The Youth Employment and Entrepreneurship Strategy 2013–16, negotiated with the social partners, had been adopted and was being implemented. The objective was to promote measures to reduce youth unemployment, promote youth employment/self-employment, and it was the result of a process of dialogue with the social partners. It met the recommendations of the European Commission and was geared to the objectives of the “Youth Guarantee” proposal. The Strategy contained 100 measures, of which the following short-term measures deserved particular mention: to stimulate youth employment, contingency measures were being adopted (until the unemployment rate fell below 15 per cent); incentives for part-time employment linked to training for persons under 30 years of age without previous work experience and originating from sectors with no employment or those who have been unemployed for more than six months, counting both employment and training. Employers’ social security contributions were reduced by 75 per cent for enterprises with more than 250 workers and by 100 per cent for the rest; for the initial youth employment contract, strong incentives would be provided for conversion into indefinite contracts (€500 per year for three years and €700 for contracts for women); incentives for work experience leading to a first job would include changes to the current work experience contract so that trained young people could obtain a first job; other measures to promote entrepreneurship and self-employment for young people under 30 years of age; fixed social security contributions, with a minimum rate (€50) for the first six months of self-employment; combining unemployment benefits with starting self-employment for a maximum of six months; increased possibilities for the capitalization of unemployment benefits to start up entrepreneurial activities, so that recipients of unemployment benefits could capitalize up to 100 per cent of their benefits to contribute to the capital assets of a commercial company employing up to 50 workers, provided that there was an employment or professional link with the company; improved protection for the self-employed to facilitate a second chance, under which unemployment benefit could be paid again after a period of self-employment which ended before the fifth year; and establishment of the generations contract to promote the hiring of experienced unemployed workers by self-employed young people. In the Autonomous Communities, administrations which engaged in skills sharing with regard to active employment policies had been taking important action in 2012 and 2013 to increase the efficiency of such policies. The following actions could be singled out: giving priority to young persons in the action and modernization relating to public employment services through the restructuring of offices; improving personalized itineraries to employment and introducing new computer applications for the provision of employment services, guidance and placement in jobs; and the reinforcement of actions designed to ensure that the recipients of unemployment benefit take part in vocational training and guidance activities, with increased linkage between active and passive employment policies.

Education policies. The school drop-out rate in Spain was twice the European Union average, with the 2011 figures being 26.5 per cent for Spain and 13.5 per cent for the European Union. The same situation had persisted throughout the last decade, although the drop-out rate fell from 31.9 per cent in 2008 to 26.5 per cent in 2011. For 2012, the latest data from the active population survey for the last quarter of 2012 gave a figure of 24.9 per cent. Nevertheless, the school drop-out data contrasted with the percentage of persons between 30 and 34 years of age who had completed tertiary-level studies. The latter figure stood at 40.6 per cent, thereby exceeding the European target of 40 per cent, and continued the progress towards the national objective of 44 per cent by 2020. The main objective of the reform of education laws, which would begin in 2014–15, was to reduce the school drop-out rate to 15 per cent by 2020. This meant that 85 per cent of pupils were expected, under the proposed new education structure, to graduate from high school or complete intermediate or basic vocational training. The aim was for the educational reform to adopt measures, inter alia, to detect learning problems at an earlier stage and implement programmes for improvement, help pupils to follow the training path that best suited their profile, step up the volume of reading in key competencies for academic development and give greater autonomy to schools to develop educational projects geared to results. Furthermore, a new basic vocational training qualification would be created, which could be accessed without completion of compulsory secondary schooling, but which would continue to train the pupil concerned with a view to resuming such studies or moving on to intermediate vocational training. In addition, in 2012 two specific action plans for reducing the school drop-out rate had been launched. The first targeted the prevention of school drop outs and promoted a return to the school system, the second aimed to cater for the educational needs of the socio-cultural environment with an impact on school drop outs. Mention should also be made of: the assistance programme designed to allow unemployed young persons who dropped out of compulsory schooling to resume their studies; the new system of part-time work aimed at those who wish to combine work and training; the new training contract which makes it possible to obtain a vocational training qualification or a certificate of vocational competence; the improved access to vocational training studies through online learning; the revision of the content of various vocational training qualifications and certificates to adapt them to the new professional realities and needs of the productive sectors; the launching of a plan to boost lifelong learning; a policy of efficiency with regard to scholarships; and reform of university legislation to promote excellence, competitiveness and internationalization of the university system.

Employment policy results. According to data in the state employment service registers, the number of people unemployed at the end of May 2013 had fallen by 98,265 compared with the previous month. In relative terms, this was a 1.97 per cent decrease. In May 2012, the unemployment figure fell by 30,113 compared with the previous month. With this fall, the number of people who were registered as unemployed stands at 4,890,928, which was the biggest reduction in the registered unemployment figure in the month of May. In fact, the average drop in unemployment in the month of May since 1997 had been 54,450. This month, unemployment had therefore fallen by 43,815 more people than the average for the previous two months of May. These data clearly maintain the tendency towards a slowdown in the increase in registered unemployment, as since May 2012 the year-on-year rate had fallen by almost nine points, six this year, and now stood at 3.75 per cent. Thus, the increase in unemployment over the last 12 months has fallen below 180,000 (176,806), while in May the previous year, the year-on-year increase was over half a million (524,463).

Unemployment falling in all sectors and among young people. Among workers from the service sector, unemployment had fallen by 61,336 (1.97 per cent), among construction workers by 18,637 (‑2.51 per cent), in agriculture by 9,405 (-4.56 per cent) and in industry by 8,851 (-1.61 per cent). Lastly, among persons who had not been employed previously it had dropped by 36 (0.01 per cent). Unemployment had fallen among men by 61,150 (-2.48 per cent) compared with the month of April and stood at 2,405,493. It had also fallen among women by 37,115 (-1.47 per cent) and stood at 2,485,435. It should also be emphasized that, among young people under the age of 25, unemployment has fallen by 16,735 (-3.53 per cent) compared with last month. Among those aged 25 and over, it had dropped by 81,530 (-1.81 per cent). Registered unemployment among young people under the age of 25 over the past 12 months had dropped by more than 32,000 (32,317), which was a year-on-year fall of 6.59 per cent.

Reduction in 16 autonomous communities. Registered unemployment fell in 16 Autonomous Communities, including in particular Andalucía (26,529), Catalonia (-14,829) and the community of Valencia (-10,671). It rose, however, in the Canary Islands (538). As for data by province, unemployment fell in 47 provinces, and particularly Barcelona (-8,655), Madrid (-8,470) and the Balearic Islands (-7,917). It rose, by contrast, in five, headed by Las Palmas (309) and Tenerife (229).

Recruitment on the rise. In May, some 1,283,261 recruitments were registered, representing an increase of 36,160 (2.90 per cent) on May 2012. Cumulative recruitment in the first five months of 2013 reached 5,457,691, which was an increase of 85,079 (1.58 per cent) on the same period the previous year. Positive developments had been seen in the training and apprenticeship contracts, as there had been 67 per cent more persons recruited under those contracts in 2013 compared with the same period last year. In May, some 7,220 new “support for entrepreneurs” contracts had been reported to the public employment services, which represent 21.7 per cent of all the open-ended contracts of that type that had been reported.

Unemployment benefits. Some 871,504 cases of unemployment benefit were processed in April 2013, which was an increase of 4.2 per cent over April 2012. The total number of beneficiaries at the end of the month was 2,901,912, a reduction of 0.7 per cent on the same month the previous year. The unemployment protection system achieved coverage of 61.28 per cent, whereas the same indicator stood at 65.45 per cent in April 2012, which was a fall of 6.4 per cent. Total expenditure in April 2013 had been €2,556 million, which was 2.5 per cent less than in the same period the previous year.

In addition, before the Committee a Government representative said that the Government was jointly responsible for policies implemented by the European Union. In late 2011, the Government had found itself faced with an international crisis aggravated by the structural characteristics of the labour market and the national economy. The first measure taken was to begin labour reforms, with the aim of building flexible industrial relations to mitigate job losses and introducing new measures to promote the recruitment of people who had difficulties accessing the job market. The reform had three main components to promote sustained economic recovery and generate employment: fiscal consolidation; the achievement of deficit goals; and the restructuring of the financial system. As a result, the labour market and enterprises had become more flexible. In addition, the Government was according special importance to active employment policies that were managed in collaboration with the Autonomous Communities.

The Government was committed to laying the foundations for a solid economic recovery that would enable Spain to get back on the road to creating stable, quality employment. That was the country’s key target and the main objective of the reform agenda. In conclusion, he said that the policies adopted would allow for sustained economic growth and employment generation, especially for young people, who were the Government’s main concern.

The Worker members recalled the relevance of the Convention in the context of the crisis currently faced by Europe, where to cope with the situation many countries were pursuing policies of austerity, revising their labour legislation to make their labour markets more flexible or drastically reducing public expenditure so as to obtain financial assistance from the “Troika” – the European Central Bank (ECB), the International Monetary Fund (IMF) and the European Commission. In the present case, the Committee was called upon to examine how Spain was reacting to the crisis in the light of ILO standards, and notably Convention No. 122. It highlighted the dilemma that existed between the commitments that States entered into vis‑à‑vis the ILO standards that they had ratified and the mechanisms that were in force in the European Union. In its report on its application of the Convention, the Government referred to the European Employment Strategy. Although the European Commission did not appear to take fundamental labour rights into account in its instructions to Eurozone countries, the ILO had nevertheless succeeded, in its contacts with the ministers of labour of the G20 countries, in gaining acceptance for the Global Jobs Pact and for the Decent Work Agenda as tools that could help countries overcome the crisis and create jobs. In analysing the case before the Committee, the conclusions adopted at the Regional Conference in Oslo, which had brought together European governments and the social partners, should be duly taken into account.

The Worker members criticized some of the measures taken by the Government to introduce more flexibility into the labour market and thus create a favourable climate for job creation, as they were not an adequate response to the crisis. They referred specifically to the adoption of a new type of contract comprising a one-year trial period during which the contract could be broken without payment of any compensation, the extension of grounds for dismissal, the suppression of administrative authorization for collective dismissals, the priority given to enterprise agreements over sectoral agreements and the greater facilities accorded to employers to modify employment contracts unilaterally. Those measures were accompanied by significant cutbacks in public expenditure, which had an impact on wages, social benefits and, in some sectors, employment. The trade union federations had denounced the absence of social dialogue and non-compliance with the agreements reached in the context of the Second Agreement on Employment and Collective Bargaining concluded in January 2012. All of those measures had been counter-productive in economic terms, as they had deepened the recession and increased the public deficit. In the first quarter of 2013, unemployment had risen to 27.1 per cent (compared with 26 per cent in the third quarter of 2012), while, among young people, it had reached 57.2 per cent and, among migrant workers, 39.1 per cent. Also in the first quarter of 2013, the share of temporary employment was 22 per cent (in 90 per cent of the cases concerned, that type of employment was by choice) and the number of people with no income from employment was 1.5 million, 800,000 more than in the first quarter of 2007. The figures showed that the steps taken had not resulted in the creation of productive and lasting employment and, consequently, did not meet the requirements of Articles 1 and 2 of the Convention. The Worker members also doubted the effectiveness of the measures adopted to combat precarious employment and unemployment and in relation to other aims of the Convention. They concluded by recalling that unemployment among young people affected a large number of highly skilled workers. It was therefore essential that the Government submit a report in 2013 on the application of the Human Resources Development Convention, 1975 (No. 142), with information on the steps taken in collaboration with the social partners to ensure that the vocational guidance system corresponded to the skills requirements of the most vulnerable workers and of the regions that had been hit hardest by the crisis.

The Employer members emphasized that Spain was the country that had ratified the largest number of Conventions, which showed how ready and able it was to collaborate with the ILO. The Committee had twice analysed the situation in Spain as it related to the Convention which, as a governance Convention, was inter-related with many other instruments that aimed at ensuring that active employment policies were consistent with the full exercise of workers’ rights. Moreover, the economic crisis in Spain was being analysed by various ILO supervisory mechanisms: a complaint before the Committee on Freedom of Association, a representation concerning non-compliance with the Termination of Employment Convention, 1982 (No.158), and the discussion in the Conference Committee. The situation should be examined from a single perspective. In the opinion of the Employer members, the Government had provided a clear explanation of the active employment policies which it was obliged to implement under the Convention. It should be emphasized that the Convention had been adopted at a time of economic growth with no consideration of times of crisis. However, the comments of the supervisory bodies, and notably the General Survey, had taken the situation into account and indicated that exceptions to social dialogue and collective bargaining were acceptable in times of grave economic crisis. In addition to active employment policies, monetary and fiscal measures had to be adopted to generate employment and the necessary climate of confidence for investment. Moreover, the Convention had been adopted at a time when the taking of decisions was the prerogative of each State, whereas today the world was divided into blocs. Spain was part of the European Union, and therefore the measures it took had to conform to its obligations vis-à-vis the Union. They concluded that, from the information supplied by the Government, Spain’s implementation of the provisions of Article 3 of the Convention was satisfactory.

A Worker member of Spain emphasized that the country was going through one of the worst situations since the establishment of democracy, a situation that the trade unions had described as a “national emergency”. In addition to the dramatic data, what was surprising was the Government’s attitude of insisting on the same policies that had brought about this social disaster. Far from resolving the crisis, austerity policies and cuts had made it worse. Although the Government was stating that labour reform provided a framework that was conducive to the creation and maintenance of jobs, the data showed that the reform, in one year of operation, had caused job losses and increased precariousness. In bailing out the financial institutions, the Government was using resources that would be much better employed for protecting the people who had been impoverished by its social and economic policy. Nor were the prospects very optimistic since the OECD was expecting the unemployment rate to rise to 28 per cent in 2014. Moreover, the latest reforms had been accompanied by a disregard for democratic procedures. Neither in the labour reform nor in other economic measures adopted with a major impact on employment had the Government left the trade unions space for negotiation, breaking with a rich tradition of social dialogue which had made Spain a model of dialogue. The Convention imposed on States the legal obligation to pursue an active policy designed to promote full employment, to consult the social partners and to periodically review and evaluate the effectiveness of the measures taken. None of those obligations had been met. The sole priority for the Government was to reduce the deficit, ignoring the ILO’s recommendations. Workers regretted that the Government had not asked the Office for technical assistance. It was to be hoped that it would not take another year for measures to be adopted.

Another Worker member of Spain said that, according to a survey, 27.16 per cent of the active population, and over 57 per cent of workers under 25 years of age, were currently unemployed. That was the net result of the first year of labour reform imposed by the Government in 2012 without any negotiation or consultation with the social partners. The reform had two objectives: first, to facilitate the dismissal of workers and reduce labour costs and, second, to undermine collective bargaining and the legal force by collective agreements. Inevitably, the outcome was to cause a further increase in unemployment and to accentuate the impact of the recession, since both factors tended to reduce domestic demand. Austerity policies and structural reform were simply a means of taking away people’s rights and social benefits and had failed to help the most indebted countries to reduce their deficits to any significant degree. On the contrary, they had generated a profound political crisis in the European Union that was developing into a crisis of legitimacy of its institutions, since governments were being obliged to take decisions through undemocratic procedures on vital issues that were not within the purview of the Union. That was what the 2012 labour reform had done in Spain, when by legislative decree the Government had allowed for employers to amend a collective agreement unilaterally which had been negotiated with its social partners. The ILO’s fundamental Conventions were no longer being respected and the policies pursued were destroying jobs. Employment could only grow and jobs be created, especially for young people, by means of investment, the financing of enterprises and families, and the stimulation of demand. The workers wanted democratic policies and institutions to which everyone contributed, in order to enhance the well-being of the immense majority who needed economic growth, employment, equality, social justice and the redistribution of wealth.

The Employer member of Spain emphasized that companies and business organizations had been demanding reform of the labour legislation long before the economic crisis had hit. Spanish companies had already been experiencing lower levels of productivity and competitiveness than neighbouring countries, in particular owing to the very rigid labour legislation, as demonstrated in the recruitment and dismissal system, and to an inflexible collective bargaining regime. Alongside the enormous problem of unemployment, hundreds of thousands of businesses had closed and disappeared. Although social dialogue was the best way to achieve agreement between all relevant parties, it was not always essential and was not necessarily the only solution. She made reference to the Agreement on Employment and Collective Bargaining that had been signed by entrepreneurs and trade unions in January 2012, and the approval shortly afterwards of labour market reform measures that had failed to take the Agreement into consideration. Since the democratically elected Government was always ultimately responsible for the country’s economic policy, it was understandable that, given the circumstances, the Government was forced to treat labour market reform measures as an urgent matter. In order to ensure positive results, the new regulations should go hand in hand with additional measures in the area of employment and other structural reforms that would, inter alia, facilitate the balancing of public accounts and improve the business environment. In the years prior to the crisis, the budget to fund active employment policies had been increased, but the desired results had not been achieved, and business organizations had constantly demanded a rigorous assessment of their effectiveness. She added that a process of dialogue on vocational training for employment was under way and emphasized that it was one of the basic pillars for the competitiveness of businesses, for maintaining and creating jobs and for the employability of workers. Given the short time that had passed since the introduction of the measures that had been adopted, the results could not yet be evaluated as regarded a consolidated positive tendency. Nonetheless, encouraging signs were beginning to show. While even business organizations had indicated that it was necessary to continue moving forward through dialogue and consultation, that was not an attempt to diminish the Government’s political legitimacy to fully exercise its legislative powers. No Government should be limited, or politically conditioned, by social dialogue. There was no doubt that social dialogue processes and the main stakeholders needed to adapt to the new requirements imposed by the realities of the ongoing crisis. The important role played by social dialogue during the decades in which numerous rights had been granted should mean that there was a greater requirement for responsibility when joining efforts to overcome difficulties.

The Worker member of Germany, also speaking on behalf of the Worker member of France, expressed great concern at the reforms pursued by the Government under the aegis of the European austerity policy, considering that these reforms in particular, and the European austerity policy in general, constituted a serious attack on social Europe. With reference to Article 1 of the Convention, which provided that each Member shall declare and pursue, as a major goal, an active policy designed to promote full, productive and freely chosen employment, he emphasized that in Spain employment was not being promoted, but rather destroyed. The rise in unemployment, particularly youth unemployment, had led to a substantial weakening of workers and unions, and was being used to implement a radical restructuring of European labour market institutions at the national level, a development that he firmly condemned. The tough cost-saving policy intended to overcome the crisis had plunged Europe back into recession in 2012. The austerity policy pursued in Spain had entailed far-reaching changes in collective bargaining, as ever more radical neoliberal labour market reforms had been calling into question sectoral and national collective agreements. For example, Decree No. 3/2012 established that collective agreements at the enterprise level took precedence over sectoral collective agreements. He expressed concerns about the fact that the Decree weakened sectoral collective agreements, and thereby trade unions. In Spain, the high unemployment rates and Government-enforced pay cuts had resulted in a decline in consumption. The consequences of the reforms in Spain and the European austerity policy had had devastating consequences in Spain and other countries, including Germany and France. He emphasized that the crisis could not be overcome by neoliberal reforms pushed through by the State, but rather through social dialogue and the increased involvement of trade unions. Growth could only be created by strengthening social cohesion.

The Government member of France, speaking also on behalf of the Government members of Cyprus, Germany, Greece, Italy and Portugal, staid that these Governments had embarked upon a joint coordinated effort to combat unemployment, especially among the young, and wished to express their solidarity with the Government of Spain in all it was doing to that end. He drew the Committee’s attention to the exceptional situation of Spain and to the determination of the Governments to combat the effects of the crisis. He reaffirmed the attachment of the Governments to social dialogue and to active policies for productive and freely chosen employment and was confident that the Government of Spain would pursue its efforts in keeping with the values and principles of the ILO.

An observer representing the International Trade Union Confederation (ITUC) said that, on the basis of data provided by the Government, 1,800,000 jobs had been destroyed in just two years. On the one hand, the Government had indicated to the ILO that it was expecting the GDP to rise by 4.5 per cent and unemployment to fall by 3.2 per cent. However, the Government’s own data, supplied by the Council of Ministers, predicted a 25.9 per cent unemployment rate by the end of 2015. This meant that, even in the best case scenario, the Government’s policies presumed that Spain would have around 6 million unemployed workers within the next 30 months. He believed that the Government’s employment policy was the product of its obsession with budgetary consolidation, while completely overlooking the most elementary principles of social justice, and that its labour reform would go down in history as the labour relations measure that had destroyed the largest number of jobs. He compared the situation of the hundreds of thousands of young people who had already emigrated or would soon have to do so with that of those who had done so in the post-war era.

Another observer representing the ITUC said that many States, and in particular international credit agencies, insisted on saying that reforms were necessary to return to the path of growth and employment creation. However, the experience of Latin American countries indicated precisely the opposite: adjustment policies magnified pro-cyclical effects, deepened the recession and hampered any recovery in employment. The similarity between what was currently being imposed on countries such as Spain and what had been implemented in Latin America was alarming. Spain’s labour reforms showed utter disregard for democratic mechanisms and broke with the commitments that had established close ties of communication and social dialogue. He recalled that the Committee would soon discuss the case of progress of Iceland, where the financial sector had not been the primary recipient of rescue packages. Lastly, he considered that what was being witnessed was the exhaustion of the credibility of the adjustment discourse, and that workers were no longer willing to continue paying the price for a speculative feast divorced from the real economy.

The Worker member of Brazil considered that what was happening in Spain constituted a significant step backwards in both political and social terms. There had been a huge decrease in the number of jobs and the unemployment rate had reached record levels, principally affecting young people and immigrants. While the Convention was general in nature, there could be no doubt about the meaning of its provisions. The policies of member States needed to promote full, productive and freely chosen employment. Moreover, the social partners had to be involved in developing and implementing such policies. Workers had not been responsible for causing the crisis, but they were the ones who were paying for it, while entrepreneurs were reaping the benefits. The question arose as to whether fiscal austerity and greater flexibility of rights had ever lifted a country out of crisis; on the contrary, such policies were leading to a greater concentration of wealth. He questioned the Government’s position, stressing that the worker’s interests should also be taken into account. He considered that only counter-cyclical policies could mitigate the social effects of the crisis and create the space in which to overcome it, giving the example of the policies in Brazil under the Lula administration. He maintained that Spanish trade union federations should be an integral part of the search for solutions, and should not be excluded from the negotiations on reforms and employment policies.

The Worker member of the Bolivarian Republic of Venezuela referred to the considerable loss of purchasing power, which had been a result of reductions in wages and the increase in the cost of living. Labour reforms had used the situation of austerity as an excuse to reduce severance pay, make dismissals and unilateral amendments to working conditions by the enterprise even easier, and distort collective bargaining by allowing for the non-application of collective agreements. Income from capital had, for the first time, exceeded that from labour. She expressed concern at the situation in Spain, which amounted to a violation of the Convention, particularly as regards the participation of employers’ and workers’ representatives in formulating employment promotion policies. Labour reforms had transformed labour into a commodity by imposing reductions in wages, changes in working conditions with little reason or need, and quick low-cost dismissal procedures. She requested the adoption of the measures requested by the Worker members.

The Government representative welcomed all the comments made, especially the words of support from the Government member of France on behalf of a large number of European Union Member States. He reiterated his Government’s stance in defence of its reforms, which were essential to return to employment generation. He particularly emphasized the effectiveness of the labour reform which had been adopted by Royal Decree, in view of its urgency, and later ratified by Act of Parliament. Encouraging the internal flexibility of enterprises would help to generate employment. The structural problems that had characterized the Spanish economy in the past, such as an unemployment rate far exceeding the European average at a time of economic growth, were unsustainable. Structural unemployment was the product of an inflexible labour market. The labour reform would push the GDP growth threshold down to 0.7 per cent to generate employment. He recalled that, although huge amounts had been allocated to employment policies in the previous decade, unemployment had not only not stabilized but had actually increased, as there had been no incentive for those policies to be effective. He believed that the way ahead lay in introducing rationalization criteria and evaluating the results. He added that it was important to pursue the reforms as the only way to generate stable and sustained employment. The reform process should be underpinned by social dialogue, a key tool for achieving the objective. He referred to the initiatives in 2013, such as the signing of an agreement resulting in the Youth Employment and Entrepreneurship Strategy and the establishment of a round table for a new agreement on vocational training for employment. Recalling that participation by the social partners in employment policy-making bodies was institutionalized, he reiterated the commitment of Spain, which had ratified more Conventions than any other country, to the ILO supervisory mechanisms for international labour standards.

The Employer members had noted the information provided by the Government and of the ensuing debate. They felt that the obligation imposed by the Convention should be understood as corresponding to the level of economic development of each State and of the relationship between its employment goals and the other economic and social objectives. They believed that the content of a Government’s active employment policies depended on the specific characteristics of each State. They therefore considered that it was not for the Committee to decide on the content and implementation of those policies. According to the Convention, consultations on those policies should be conducted with the social partners so as to benefit from their experience and views and to reach agreement on policy changes. Recognizing that broad consultation on active employment policies was normal, they considered that, when faced with the serious and insurmountable problem of having to save jobs, enterprises and institutions, as was the case in Spain, it was acceptable to adopt exceptional measures, within the context of social dialogue and existing domestic legislation. They agreed with the requests made by the Committee of Experts for information from the Government.

The Worker members emphasized that the ILO could not turn a blind eye to the dramatic situation affecting Spanish workers and threatening European workers in general. Waiting another year or two to act would merely aggravate matters. In the context of the Convention, examining data on unemployment fell well within the competence of the ILO supervisory bodies. The Committee of Experts should also assess the impact of macro-economic policies in order to ensure that they met the requirements of the Convention, and particularly Article 1(3). In that regard, they urged the Government to provide relevant and up-to-date information in light of the aims of the Convention so that its employment policy could be examined, taking into account the application of its economic and budgetary policies. Furthermore, the Government, in conjunction with the social partners, should evaluate the results of its employment policy and amendments already made to labour market legislation and seek the widest possible consensus with the social partners to prepare an ambitious employment plan. Deploring the total breakdown in social dialogue, they also urged the Government to re‑establish constructive dialogue with the social partners, in accordance with Article 3 of the Convention, and proposed a high-level technical mission to assist in implementing these requests.

Conclusions

The Committee took note of the detailed written and oral information provided by the Government representative and the discussion that followed.

The Committee noted that the issues concerned the deterioration of the labour market situation in the context of the adjustment measures implemented to deal with the debt crisis in the Eurozone, the difficulties with respect to social dialogue, the increasing youth unemployment and long-term unemployment and the need to ensure that educational policies met employment needs and the needs of the workers affected by the crisis.

The Committee noted the comprehensive information provided by the Government on the active labour market measures it was implementing on the economic and employment strategy adopted in the context of the European Union to tackle unemployment and the social consequences of the crisis. The Government stressed its commitment to social dialogue in order to overcome the crisis. The 2012 labour reform provided for internal flexibility measures to enable enterprises to adapt to the current economic circumstances. The new strategy also included specific measures to reduce the youth unemployment rate, strengthen public employment services and the intervention of private placement agencies, and further coordinate between the national and regional authorities to attain a better balance in the labour market.

The Committee noted that the Preamble of the Convention stated that, under the terms of the Declaration of Philadelphia, it was the responsibility of the International Labour Organization to examine and consider the bearing of economic and financial policies upon employment policy in the light of the fundamental objective that “all human beings, irrespective of race, creed or sex, have the right to pursue both their material well-being and their spiritual development in conditions of freedom and dignity, of economic security and equal opportunity”.

The Committee considered that the outcome of the Ninth ILO European Regional Meeting was relevant to this case. It noted that the Oslo Declaration “Restoring confidence in jobs and growth” stated in particular that fiscal consolidation, structural reform and competitiveness, on the one hand, and stimulus packages, investment in the real economy, quality jobs, increased credit for enterprises, on the other, should not be competing paradigms.

The Committee expressed its concern at the persistent deterioration of the labour market and urged the Government to continue evaluating, with the participation of the social partners, the impact of the employment measures adopted to overcome the current job crisis. The Committee requested the Government to pursue, as a major goal, an active policy designed to generate sustainable employment opportunities, particularly for youth and other categories of workers affected by the crisis. The Committee requested the Government to increase its efforts to strengthen social dialogue with a view to maintaining a favourable climate for employment creation and achieving better results in the labour market. The Committee noted that the Office could contribute, through technical assistance, to promoting a sincere and constructive social dialogue among all the parties concerned to address the labour market situation in the context of Convention No. 122.

The Committee requested the Government to provide a report for the next meeting of the Committee of Experts with updated information regarding the application of the Convention.

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A Government representative of Spain made the following statement:

This year the Committee decided to discuss part of the Spanish situation and Convention No. 122 on Employment Policy in Spain. The general topic is important at present, the discussion in plenary is about this very subject and it is also very important to us. However, I cannot fail to mention with respect to this Committee and the Committee of Experts' report, the first paragraph of the observation in which the Committee again thanks the Government for having provided very specific and documented replies to most of the points that were raised in its previous observation and also thanks the Government for the fact that it has engaged in a well-founded dialogue with supervisory bodies concerning the application of the Convention. The situation in Spain is quite well known here in this House and is particularly important for this discussion to consider the report which covers nearly 100 pages of information and is quite recent. It dates from only a few months ago and covers all of the changes that have taken place in Spain to date. There have not been any major changes in legislation. The Committee of Experts has already studied all of the legislative texts and these have been well covered in the observation. What is worth stressing, however, in terms of the measures that have been taken is that in the first few months of 1995 there has been a positive trend and an improvement in the employment-unemployment ratios. According to the last report that was provided to me here in Geneva, which dates from May 1995, in 1994 the number of registered placements in the National Employment Institute was 5,939,207 people which is a new historic high, 22 per cent higher than the figure of the previous year. The data for the first quarter of 1995 confirmed the positive trend in job placement that took place with 1,897,535 placements, 44.6 per cent higher than in the same period of the previous year. In this trend towards placement the new measures that were introduced through the reforms have undoubtedly had considerable impact. Another important variable that also had a positive impact in 1994 was the unemployment in the national employment agencies since 1994. In March of this year unemployment has been reduced by 214,146 people, which is a 7.6 per cent reduction. The current unemployment rate is 16.4 per cent, which is well below, as you can see, the 24 per cent, slightly above 24 per cent, of the previous period.

Another important point to stress is that the reduction applies above all to young people in March of 1995. There were 117,446 fewer people under 25 years of age who are unemployed than in the same month of 1994. This positive trend in terms of employment, as registered by the National Employment Institute, is corroborated by the data coming in from the social security affiliates. During 1994 the social security affiliations went up by 200,600, whereas in 1993 it had fallen to 530,000. The corresponding data from March 1995 shows an increase of 2.4 per cent (291,600), compared to the previous year's statistics for social security. This is just some of the statistics that show the general trend of employment in Spain, which complements the information contained in the report up to March of 1995, and one hopes that this positive trend will continue as a reflection of an incipient but clear economic recovery. We should not forget that in economics the results can determine the effectiveness of the measures. Still, there has been criticism from the Committee of Experts of some of these same measures. Let me say that the employment policy, as a primary objective of our general economic policy in Spain, is carried out in a coordinated fashion, as indicated by the Experts and the Convention itself.

The Minister of Finance, in particular, together with the Minister of Labour and Ministries of Social Affairs, Industry and Economics are working together, which means that the specific measures taken in terms of labour relations unemployment are discussed not just in a single Ministry, such as the Labour Ministry, but rather and here I am quoting Convention No. 122 come from the determination and regular review of the employment policy as an integral part of an economic and social policy which is well coordinated in order to achieve, as the first Article of the Convention says, the objectives set out in Article 1.

The second point is that such measures have managed to achieve a certain balance between the position of Spanish employers and that of trade unions. This reflects the provisions of Article 3 of Convention No. 122. In the Committee of Experts' report, the observation mentions a position taken by a Spanish trade union, which as everyone knows, therefore, is opposed to the measures that have been taken, but it also must be known that the Spanish employers have said that the measures are insufficient. The purpose of the measures is to improve employment, even when clearly there is disagreement on both sides. This means that the changes that have been produced, which are already familiar to the Committee of Experts, are part of this whole balance which has to be achieved, with some difficulty at times, between the twin goals of employment and economic development. The measures taken, however, are not just taken by the Government and the Ministry of Labour, but rather are the result of the attempted and desirable coordination of all shades of opinion achieved through dialogue, and in the end, achieving broad support in the entire spectrum of views.

Following these general considerations, it is necessary to consider the specific social measures that have been adopted. The details and the statistics can be found in the reports, which are only a few months old.

1. In a free market economy, employment feels the effect of the expansion or shrinkage of enterprises which seek an appropriate balance between current income and future prospects. As we have said and is well known, at this point in our economic development, achieving this balance is rather difficult.

2. Transparency of the labour market is required in order to promote initial employment. Therefore, employment agencies and temporary-work agencies have been authorized, and these, together with the National Employment Institute, work together to try and reduce the bureaucracy involved in contacts between workers and enterprises. Regulations governing both are limited in relation to the pertinent legislation, and up to now it is not known whether these restrictions might not impede the free establishment in the Spanish market of such agencies. We have to achieve a balance. On the one hand, we have broken the monopoly of the National Employment Institute in order to reduce bureaucracy, but on the other hand, there has been considerable supervision exercised over the new agencies. We do not know yet whether we have achieved the necessary balance, given the characteristics of Spanish society. All of this is open to the readjustment that will come in time. What we cannot do is criticize in principle the measures adopted because this is an experiment which has proved successful in most free market countries. These agencies, which are now operating, tend to stress temporary employment and are sometimes criticized therefore as creating precarious employment. The contracts that may come from these agencies are the same as those which enterprises can sign directly with workers. Therefore, these agencies are neither restricting nor expanding the measures governing labour under Spanish law. All they do really is to increase transparency in the labour market, and they are governed by labour legislation.

3. Contracting, as a legal instrument, has undergone some changes which reflect the considerable care that has been taken in trying to seek the balance between the interests of workers and employers, the balance which has been referred to repeatedly.

(a) Only classic temporary contracts remain specific working hours or fixed-term contracts, indeterminate contracts, contracts for new employment and the temporary contracts. We have indeed tried to respond to the concerns of the workers and to the situation in the market and this led indeed to temporary employment. The measure that was taken is now having an impact on employment policies in enterprises but we have tried to mitigate any negative impact.

(b) On the other hand, we have changed, though not to the extent that would be wished by the trade unions, the apprenticeship contracts - these are strictly traditional under Spanish legislation. There is nothing new in this area. In the changes that have been made we have tried to reaffirm the characteristics of the contract, that is apprenticeship, with lower minimum wages but without in any way prejudicing the bargaining that might take place in the enterprise and in the sector, and providing minimum social security guarantees. And this, everyone knows. There is a study under way now trying to modernize our social security system. Because of the youth of these workers, the social security benefits that they receive have to do with accidents and diseases in the workplace and general medical assistance, disability benefits, pregnancy benefits and protection of wage levels. They are not given any protection for loss of employment or for temporary disability.

(c) In terms of contracts, let us also stress the positive measures that have been adopted as part of our employment policy in order to promote stable and permanent contracting but, given the existence of the temporary contracts for promoting employment, all of the other temporary contracts, which are those which are generally found under all labour legislation, are given financial incentives to be turned into permanent contracts. This is not a question of seeking balance between employers and workers, but rather is a public measure that tries to benefit both sides in order to create stability in employment and the cost of this is paid by the entire society. Temporary contracts as a means of promoting employment are at present reduced or limited to the most disadvantaged groups of workers, that is people with disabilities, those over 45 years of age and long-term unemployed whose contracts are also promoted by incentives involving social security.

(d) Provision of contracts and stability in employment is closely linked to vocational training. In this area there are no serious differences between workers and employers. However there are limits that result from the economic possibilities of the system. The three stages of training, that is basic, occupational and for promotion, which we call ongoing training, have undergone major changes in order to improve them further. With respect to the first two types of training, there has been a unitary approach to both subsystems. We have set up a national institute for professional qualifications which is the basis of providing diplomas from the Ministry of Education and Science and professional certificates that come from the Labour and Social Security Ministry. We have specified the powers of each of the two ministries involved and this shows a tremendous amount of coordination that is involved in trying to attain the objective of full employment. With respect to the third type of training, that is ongoing training, there are no real changes. Rather, we have created this on the basis of the 1993 Law on Ongoing Training and what we want to do is to finance measures and programmes for ongoing training in enterprises, otherwise as through apprenticeships. This indeed was a matter that had been criticized by the trade unions and had been a matter of concern to the employers as well. So we have paid attention to the content of the apprenticeship contracts and the training programmes which take place in the enterprises of a foundation which has been set up, which is directed by workers' and employers' organizations, which administers the public funds that are assigned for this purpose on the basis of training programmes developed by the enterprises, which then apply for funding. Here, we can talk about a lack of resources but this as well depends on the general economic situation and the report that we have recently sent contains full specific detailed information on all of these measures in the area of vocational training.

(e) We refer to regular activity in the enterprises and in this area of labour relations we have paid particular attention to finding a balance between the positions of workers and employers. The former felt that there were insufficient changes, whereas the other side felt that there had been considerable deregulation in labour legislation; and I refer to this because this was also mentioned in one of the observations of the Committee of Experts.

But let me give you a basic overview:

1. We have gone to collective bargaining for certain elements of enterprises that move from one place to another with protection for workers' rights, some of which are protected under law reducing public intervention which tended to limit the flexibility for an enterprise which, given the difficult economic situation, is essential.

2. We have also entrusted to collective bargaining certain aspects of wages and working hours but we have protected the basic aspects and the fundamental limitations increasing regulation in other areas of public protection for workers, for example, in relation to night work.

3. In terms of suspension of contracts, and an end to worker employment relationships, there have been major differences of opinion here between workers and employers. The three ways in which a contract can be ended - general or individual, because of the general economic situation, or dismissal for disciplinary reasons - have been fully regulated by the administrative authorities. Therefore, any change that was not based on major concepts was mentioned by the workers, whereas the employers felt that really nothing very important had changed. We have tried to give more power to the two parties but have safeguarded the ultimate ability of the authorities to mediate were that necessary whilst still reducing bureaucracy. It is necessary, for example, in a critical economic situation to be specific about the economic situation of the enterprise but we have tried to ensure that individual situations would not interfere with general collective results. Any dismissal for disciplinary reasons has to be carefully specified and we have always protected the basic rights of the workers. This is a broad concept which means that throughout this disciplinary procedure the Constitution provides us with considerable protection for workers on the basis of standards and possibilities for appeal by workers.

There has been some reference to deregulation but rather than deregulation we would call it reassignment of responsibilities and an attempt to adapt our regulations to the current economic situation of Spain and the need for employment and economic development.

The Employers' members thanked the Government for the information it had provided. This case had been discussed in 1988 and indirectly last year during the discussion of Convention No. 158. A distinction was drawn between Convention No. 122, which was a promotional Convention, and Convention No. 158, which regulated the conditions for termination of employment. The Employers' members questioned the relevance of connecting Convention No. 158 with Convention No. 122 when they had different objectives, merely leading to confusion.

Convention No. 122 did not set forth any precise actions for governments to take. Instead it set forth objectives for employment promotion and left room for differences in application due to varying circumstances in individual countries. Given that there was a close link with other economic and social policies, it was hard to assess the degree of the Government's accomplishments concerning the Convention. Employment promotion was a dynamic and ongoing process, particularly given the current global nature of the marketplace. Unemployment at one point had reached 22 per cent in Spain, which was quite high, but appeared to be decreasing, indicating some success in the Government's policies. This high unemployment was due in part to labour market rigidities concerning contracts, which appeared to have been relaxed, as the Government representative had mentioned in his statement. Concerning temporary contracts, these were necessary in light of the high unemployment rate, and played a role in providing employment and training opportunities to workers otherwise excluded from the labour market. The other strategies mentioned by the Government representative were a complementary part of a comprehensive approach to employment promotion. Lastly, they stressed that vocational training also played an important role, particularly in light of widespread structural adjustments.

The Workers' members indicated that they had proposed to include Spain in the list of individual cases for discussion for various reasons: to promote dialogue concerning this Convention; to call attention to the disturbing evolution of the situation of employment; to make the Government aware of the need for coherence between the general economic policy and the execution of the objective of full employment; to discuss the relationship between the functioning of the labour market and the measures adopted concerning regulation of labour and employment (concrete measures concerning labour contracts to promote employment and the conclusion of contracts of indeterminate duration); and to underline the importance of consultation with employers' and workers' organizations on all aspects of economic policy concerning employment. The Committee of Experts had underlined that the employment situation had deteriorated in the last few years. Despite certain improvements concerning flexibility which had been adopted, unemployment had reached 22.7 per cent. The number of temporary contracts amounted to a third of all contracts, which was the highest level in all of the European communities. This was an exorbitant number. Likewise, the statistics relating to the efforts of enterprise investment in the training of workers (0.6 per cent of payroll) was not encouraging. This was a preoccupation because the systems of stability in employment had a positive impact on the training and qualification of workers and reinforced enterprises' capacity for internal adaptability. In its report, the Government indicated that it was promoting employment through contracts of indeterminate duration inconsistent with the views of the present Committee. None the less, the Workers' members indicated that they wished to see more convincing results from the policy announced by the Government representative, and requested that the ILO be kept informed of the evolution in the number of contracts of indeterminate length.

Concerning social regulations (coverage for social security, the right to work, training, etc.,) the Workers' members insisted that the Government guarantee to workers with temporary or part-time contracts a protection which was equal to that enjoyed by workers who had contracts without limit of time. The Government should also guarantee that the number of temporary contracts be limited and controlled in order to avoid abuses, and that measures for promotion of employment, such as contracts to facilitate entry into the workforce and apprenticeships, did not stray from their objective.

The Workers' members also indicated that the report submitted to the Committee of Experts did not contain the information requested concerning the manner in which the measures adopted in the principal areas of economic policy contributed to the pursuit of the objective of full employment. The Committee of Experts had always insisted that the economic, financial and monetary policies all be linked to the objective of full employment. This was very important. Other policies also should be developed with the objective of the pursuit of full employment. The Workers' members asked the Government to send detailed information in this respect. Lastly, they underlined that, by virtue of Article 3 of the Convention, the Government should genuinely consult the workers' and employers' organizations concerning the employment policy and its relationship to the economic policy.

The Workers' member of Spain joined in the statements of the Workers' members. He indicated that this case was brought before the Committee in 1988 and subsequently in 1990, 1991, and 1993. On these occasions the Government representative had claimed that the policies were on the right track, that positive aspects of the employment policy existed, and that many temporary contracts with beneficial results had been created. The unions, on the other hand, had denounced the 16 per cent unemployment level of 1988 (which reached 23 per cent in 1995); the danger of the general use of temporary contracts; the precarious situation for more workers as they replaced those with permanent contracts, etc. For its part, the present Committee had requested that information be provided and that measures be taken, and had insisted that the Government develop its employment policy in cooperation with the social partners. However, the Government responded by promulgating a decree in 1992, without negotiating with the unions, from which it had preferred to distance itself in the last few years. The results regarding unemployment all these years showed that the Government had followed the wrong policy. Convention No. 122 was a promotional Convention in which trends, directions and, above all, results were important. In this respect, the statistics given earlier on unemployment (23 per cent) should be considered in relation to the number of workers with precarious employment (35 per cent). These percentages should be compared with the average in the European Union (between 8 and 11 per cent unemployment) in order to arrive at the conclusion that something grave had occurred and that the employment policy did not comply with the Convention. Concerning the statistic alluded to by the Government representative that 5 million positions had been created in 1994, it must be pointed out both that "position" meant temporary contracts of short duration, in many cases as short as one or two months; and that the active labour force in Spain was 12 million, of which 5 million were contracts of short duration. The problem of massive numbers of workers losing contracts of determinate length also existed. Furthermore, the Government representative stated that the law governing the use of temporary contracts to promote employment had been derogated; but this was not correct. In 1994, six months after this "derogation" the law was reinstated. To achieve full employment, it was important to develop an effective policy which took into account social and economic factors. He insisted that the Government take account of this in the near future.

Lastly, he stated that the speech concerning employment which the Spanish Minister of Labour gave in the plenary of the Conference was perfect and could be the basis for negotiating a plan for effective employment in Spain. Since he did not believe that this was an electoral speech, he could not fail to observe that the speech did not coincide with what the present Government representative had just said.

The Employers' member from Sweden noted that there were opposing views on the legal obligations imposed by Convention No. 122. Although there was consensus that the goal of the Convention was the promotion of full and productive employment, opinions differed everywhere sharply as to the policies and measures which were best suited to achieve this goal in the long run. Therefore it was impossible to make incontestable legal assessments on the requirements following from Convention No. 122.

The Committee of Experts rightly considered it necessary to look at the entirety of all the policies that touched upon employment promotion in order to make an assessment (including finance, taxation, investment, trade, prices, incomes, wages, training, labour market and social policies). Full and reliable information on each country including all the factors which might influence employment in the long run would also be necessary. The Committee of Experts had asked for a little more information here and a little less there. Even if the Committee received and was able to digest all the information needed, the speaker still doubted that the Committee would be able to draw any valid conclusions concerning the financial and other policies which a country was legally required to pursue, according to the Convention. Aware of these problems, the Committee had limited itself to certain isolated comments and pointers on labour market measures in Spain. This case demonstrated the need to review ILO standards, including the abolition of Convention No. 122, against which the Employers' group voted unanimously when it was adopted in 1964. In the meantime, the Committee was obliged to make comments, but should restrict itself to as few as possible.

The Committee noted the extensive statement of the Government representative. Having carefully taken into account the various aspects of the statement, the Committee called upon the Government to implement its policy so as to promote full, freely chosen, and productive employment as envisaged in Convention No. 122, maintaining consultations with the employers and workers on the matter from time to time. The Committee also called for a further full report on the consequences of their policies including in terms of developments in the employment situation.

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A Government representative shared the concerns of the present Committee in relation to a problem which was of utmost importance to his Government as well. The speaker indicated that a careful reading of the Committee of Experts' comments suggested that several considerations should be taken into account. Firstly, the Committee of Experts, as stated in its observation, had not been able to examine the latest data submitted by a workers' organisation and by the Government of Spain. As a result, there was reason to doubt a real interest on the part of the present Committee to engage in a dialogue. Secondly, since the Committee of Experts' comments had for the most part been positive, the application of the Convention by the Government could have been mentioned as a case of progress in the Committee of Experts' general report. Thirdly, the Committee of Experts had noted the level of unemployment and had requested the Government to continue providing reports. The speaker stressed that the frequency with which reports on the application of the present Convention were supplied was greater than that which the Committee of Experts had requested. The speaker indicated that this Convention only laid down tendencies and orientations which all agreed were desirable, without mathematically determining the goals which governments should meet. Employment policy depended on complex circumstances which required the assistance of economic theory. In any event, the Committee of Experts' comments were general and did not address the detailed information sent by his Government in its extensive report, which had appended legislative texts and statistical data. The Government's report for the period ending 30 June 1986 took into account standards and actions undertaken and carried out in compliance with the Convention. There had been no change in the basic legal provisions in the year-and-a-half since then. His Government did not consider it opportune to amend constantly the legislation, given the fact that the goal was to provide a climate of stability and permanence so that enterprises could embrace the economic policies in the short and long term so as to promote employment. The Government periodically brought its plans and programmes up to date, thus developing the basic standards in this field. The periodic reports updated the information on the measures the Government adopted on a regular basis. The Committee of Experts' observation led one to conclude that his Government was meeting the formal obligations arising from ratification of the Convention and that the measures adopted by the Government were in conformity with the substantive contents of the Convention, in particular its Article 1. As regards the level of unemployment, the speaker stated that this was a constant concern on the part of the Government; the majority of countries faced this phenomenon, particularly those with market economies. The speaker indicated that after a decade in which employment had fallen, in 1986 it had been possible to create 332,200 additional jobs with an increase in the gross domestic product of 3.5 per cent-the highest in the OECD. The increase in employment had been seen as being stimulated not only by economic growth but also by employment promotion measures introduced in the legislation and by the conclusion of a tripartite accord, the Economic and Social Accord. The Government representative stated that between 1985 and 1987 the Spanish economy had generated more than 900,000 jobs. In the past two years, the labour market had shown a marked increase in the number of women and young workers. As a result, the extent of the jobs created had not automatically been reflected in a reduction in the unemployment figures, which had nonetheless been reduced by 1.5 per cent in the period 1986-87, with a particularly important fall in unemployment among youth. The speaker said that in 1987, the number of unemployed young persons had decreased by 49,200, thus reducing the level of youth unemployment by 2.8 per cent. In the same way, there had been a growing increase in economic activity on the part of women. The speaker concluded by making the assurance that his Government would continue to study all measures which could increase employment while seeking a balance between the social and economic forces present in Spanish society.

The Employers' members expressed the opinion that there should not be a general discussion on the present Convention but rather specific examples should be given. Governments were to appear before the present Committee so that questions could be asked. While the discussion in this Committee may have to emphasise negative events on certain occasions, they also considered positive developments. The case of Spain fell into this latter category in connection with the present Convention. The Employers' members noted that the report of the Committee of Experts contained four points. With regard to the first point, the Government had supplied information but the Committee of Experts and, thus this Committee, had not yet been in a position to examine this information. In the second point the Committee of Experts had noted with interest the employment market policy of Spain. The Committee of Experts had not criticised this policy and the Employers' members had no criticism of it as it seemed to contain the right mix of measures to combat the problems which existed. In the third place, a number of figures had been mentioned which showed that there had been positive developments; more positive than in other countries although in absolute terms the unemployment figures were still fairly high. With regard to the remaining problems, there were understandable reasons for these, just like in other countries. There were more applicants in the labour market as a result of a change in society as a whole and, in particular, a change in the role of women in society. Moreover, there was an increase in the number of younger people in the labour market. As the Committee of Experts noted, because of these reasons there was still fairly high unemployment - particularly youth unemployment and long-term unemployment. The Employers' members expressed their concern over this situation but noted that the Government had recognised this problem and was trying to tackle it. They looked forward to receiving more information on the employment policy in his country and hoped that the achievements in the past would be continued in the future.

The Workers' members agreed with the comments of the Employers' members. They noted that in the field of youth unemployment, tremendous efforts were being made by the Government and hoped that these would continue in the future. Similar efforts were also being made with regard to the unemployment of women. However, with reference to the figures contained in the report, they pointed out that no progress had been achieved from 1985 to 1987 to reduce the average unemployment rate. They noted that this figure was still extremely high compared to other countries in Europe. Therefore, they hoped that the efforts described by the Government representative would be intensified in order to bring the unemployment rate down to an average European level.

The Worker member of Spain thanked the Government representative for his explanations. His organisation, the Trade Union Confederation of Works' Committees, considered that the dialogue with the Government was justified given the fact that comments to the Government's report had presented. He recognised that economic progress had been made in the country. However, he noted that the rate of unemployment was the double of that of other European countries. The Worker member of Spain provided supplementary information concerning unemployment in the country. According to available information known to his organisation, and the Spanish Human Rights Association, 1,875,500 workers had lost their jobs between December 1982 and December 1987. This was referred to by the Committee of Experts in its report when it indicated that the rate of unemployment continued to be very high. Unemployment affected, in addition to women, two other categories of workers: young persons who were looking for first employment and the long-term unemployed. He requested the Government representative to provide information on the draft youth employment plan which, according to the information available in the press, entitled enterprises, who took on workers under the age of 26 years, to receive a subsidy from the Government and exoneration from social security payments. Moreover the young employees would be excluded from collective bargaining agreements. With regard to the long-term unemployed he recalled with concern that in the economical and social agreement it was proposed to increase the rate of social security benefits to long-term unemployed but that since 1985 the percentage of benefits for the long-term unemployed had been 26 per cent. With respect to the employment policy the fundamental measures implemented by the national authorities introduced flexibility in the labour market by developing temporary jobs. In this regard he pointed out the particular problem created by the so-called effect of substitution of flexibility measures: the precarious jobs had a negative influence on stable and permanent employment; employment flexibility caused enterprises to implement internal adjustment through means of terminations; a number of enterprises had dismissed large numbers of workers who occupied stable posts in order to hire others based on temporary contracts. It was regrettable in this regard that information was lacking concerning this situation. In conclusion the speaker referred to three situations which required attention. Firstly, he warned that the legislation in force with regard to temporary workers consisted of degrees which in a few cases contained dispositions with a view to prevent precarious employment from having a negative effect on stable employment. He hoped to have the assurance that the courts would not have difficulty in applying the law which accorded a greater protection to workers in fixed or stable employment than did the decrees concerning temporary contracts. Secondly, he requested that information should be provided from the labour inspection concerning the application of the legislation in force with regard to the substitution of permanent workers by temporary workers. Finally he stressed the necessity of ensuring that trade unions would have the right to information on temporary contracts.

The Government representative thanked the Employers' and Workers' members for their statements. He recognised the necessity of progressively improving the situation in the labour market. The Minister of Labour had prepared economic policy plans which would be the subject of consultations with employers' and workers' organisations. He ensured in particular that the youth employment plan would be the subject of tripartite discussions, specifying that its elaboration and execution would take into account the obligation to fully respect all Conventions ratified by his country. Although imperfections did exist, the speaker indicated that the legislation concerning temporary contracts was not any different from those provisions applied in neighbouring countries. The objective of the Government with respect to the employment policy was to modernise labour relations. The speaker indicated that the reports which his Government had supplied contained detailed information on the above questions.

The Worker member of the Federal Republic of Germany emphasised that the Spanish case could serve as an example for other countries in Western Europe. All countries in this region had the problem of flexibility and deregulation which led to a reduction of full-time jobs. The number of part-time and short term jobs is increasing. There was no right to guaranteed employment nor to education or training for young persons. He further pointed out that a number of multinational enterprises operated in Spain, and countries like Spain, because the working conditions and salaries were lower. In this respect, unions in different countries needed to work together to ensure that multinational enterprises would not succeed in pitting workers in one country against those in another. Moreover, Governments in fighting unemployment, should not lower salaries or allow the deterioration of working conditions because the jobs they were creating in one country were jobs that would be lost in another. Therefore, coordinated action was required and a minimum level needed to be established. In this regard, ILO standards are of great importance.

The Committee took note of the detailed information provided by the Government representative. As noted by the Committee of Experts, the positive results achieved in the overall level of employment had not led to a fall in the unemployment rate, which remains a serious cause of concern. The Committee shares the hope expressed by the Committee of Experts that the Government will maintain its endeavours in co-operation with the representatives of the organisations and persons concerned to secure productive employment, and that it will supply full information in this respect.

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Articles 1 and 2 of the Convention. Measures to mitigate the impact of the crisis. The Committee notes the detailed information supplied by the Government in the report received for the period ending in June 2010. The Government states that the most serious consequence of the economic crisis was large-scale job destruction with the attendant increase in unemployment. The year 2009 saw the destruction of nearly 1,400,000 jobs, in particular affecting young and adult male workers in the construction sector and to a lesser extent in industry. More than 73 per cent of the jobs destroyed were held by temporary workers. By the end of 2009, the unemployment rate had reached 18.1 per cent of the active population (more than 4,000,000 persons), the highest since 1998. The Government provides information on various packages of measures to cope with the crisis. In November 2008, the Spanish Plan to Stimulate the Economy and Employment (“Plan E”) was adopted and included initiatives such as tax breaks and easier access to credit for enterprises. Plan E also included a programme to modernize the economy and foster medium- and long-term sustainable economic growth. Furthermore, in November 2008 a State Fund for Local Investment was established to maintain and create jobs, prevent exclusion from the labour market, set up cooperation agreements between the central Government and the municipalities and to build the institutional administrative capacity of the municipalities. In January 2010, a new State Fund for Local Investment was created to address the downturn in the labour market and achieve a more balanced economy. In addition, Act No. 27/2009 of 30 December was adopted setting out urgent measures to promote and maintain employment and protect the unemployed, providing also for measures to create jobs. The Committee requests the Government to provide information in its next report on the impact of the anti-crisis packages in terms of creating productive and lasting employment.

In its previous comments, the Committee referred to Act No. 43/2006 of 24 December to improve growth and employment, which sought to promote job stability. The Government states in its report that the system of incentives set out in the Act caused a drop in temporary employment from 2006 to 2009. Because of the crisis, the percentage of indefinite contracts has now reverted to the figures prevailing prior to the 2006 reform. In its General Survey of 2010 concerning employment instruments, the Committee made the point that labour market reforms in Spain had resulted in significant growth in the use of non-regular contracts of employment associated with inferior social benefits and less employment security (General Survey of 2010, paragraph 575). The Committee understands in this connection that the labour reform launched by Act No. 35 of 17 September 2010 establishing urgent measures for labour market reform seeks to: (1) reduce labour market dualism by promoting the creation of stable and quality employment; (2) strengthen instruments for internal flexibility in the development of industrial relations and, in particular, implement measures to shorten the working day, reducing recourse to terminations and providing alternatives to temporary contracts; and (3) increase opportunities for the unemployed, focusing on young people in particular. The Committee requests the Government to indicate in its next report the manner in which the legislative measures in force have contained job instability and reduced labour market dualism.

Article 3. Participation of the social partners. The Government recalls that in July 2008 a new Social Dialogue Declaration was signed with the social partners, the aim of which was to boost the economy and further social progress by modernizing the labour market. In February 2010 the Government submitted to the Social Dialogue Committee a proposal on labour market measures for discussion between the social partners. It furthermore announced its intention of concluding these negotiations with a tripartite agreement between the employers’ organizations and the unions that would pave the way to a modern and functional labour market consonant with the development of a sustainable economy. According to comments made in September 2008 by the Trade Union Confederation of Workers’ Commissions (CC.OO.), the production model is based on low productivity work that is highly intensive in cheap labour with little demand for qualifications, and it is proving unsound in the short term. In its General Survey of 2010, the Committee also pointed out that social dialogue is essential in normal times and becomes even more so in times of crisis. The employment instruments require member States to promote and engage in genuine tripartite consultations (General Survey of 2010, paragraph 794). The Committee requests the Government to indicate in its next report the manner in which the social partners have taken part in devising, implementing and evaluating employment policies to counter the negative effects of the crisis.

Integrated labour market policies. The Government states that it grants subsidies to the Autonomous Communities to develop their Comprehensive Employment Plans, which are financed out of the budget of the Public Employment Service. The Comprehensive Employment Plans should allow significant improvements in terms of activity and occupation in the labour markets of the Autonomous Communities and, through actions and measures to promote employment, should narrow the gaps between the Communities and the national average. Comprehensive Employment Plans have been carried out in the Canary Islands, Castilla La Mancha, Extremadura and Galicia, and a special employment plan has been implemented for the bay of Cádiz. In 2009, the highest employment rates were in Madrid (55.7 per cent) and Navarra (54 per cent), and the lowest in Extremadura (42.8 per cent) and Ceuta and Melilla (43.2 per cent). The Autonomous Communities with the highest unemployment rates are the Canary Islands (26.2 per cent) and Andalucía (25.4 per cent), and those with the lowest are Navarra (10.9 per cent) and the Basque country (11 per cent). The Committee invites the Government to include information on the measures taken to reduce regional disparities so as to attain a better balance in the labour market.

Long-term unemployment. The Government states that in 2008 long‑term unemployment stood at over 21 per cent and in 2009 rose to 28.4 per cent. The Government indicates that as a group affected by the most negative consequences of the current economic situation, the long-term unemployed are targeted for priority action under employment policies. In 2009, the number of long-term unemployed stood at 1,181,700, an increase of 114 per cent (629,600 new jobless) over 2008. Specific measures are being adopted for this group through the development of vocational training and retraining programmes and incentives to offer stable employment in the form of subsidies for employers’ social security contributions. The Committee invites the Government to include in its next report information on the impact of the measures taken to enable the long-term unemployed to secure stable jobs.

Youth employment. The Government states that young people have seen a considerable decline in their position in the labour market, with a significant drop in their employment level and a notable increase in their unemployment rates. Youth employment posted a significant decline in 2008, falling 23.9 per cent (433,000 unemployed young people) as compared to 2008. At the same time, unemployment rose by 41.9 per cent (250,000 new unemployed). As a result of these trends the number of young persons in employment stood at around 1,400,000 and the number of those unemployed, at 841,500. The Committee notes that in order to encourage the employment of young people, Act No. 27/2009 of 30 December on urgent measures to promote and maintain employment and protect the unemployed, provides for an evaluation of the current system of hiring subsidies with a view to making young people of 16 to 30 years of age with special employability problems a priority target group for the new subsidies. The Committee asks the Government to include information on the measures set forth in Act No. 27/2009 to improve the quality of employment for young people with little training. It also invites the Government to send information on other measures taken to afford young graduates the opportunity of finding lasting employment in which they can use their training and skills.

Education and vocational training policies. The Committee notes the CC.OO.’s remarks that there has been no drop in the school failure rate and no suitable measures to provide students with guidance on vocational training or to improve the education system. The Government states that Plan E included a series of initiatives for education and vocational training. As regards vocational training, a roadmap was approved to promote and improve vocational training through measures to accelerate reform and increase the number of persons with qualifications. The aim is to set up a system that accommodates the needs of students, workers and employers, improve the social image of vocational training and put Spain on a par with the other European countries in terms of student numbers in vocational training. The Committee further notes that the Sustainable Economy Act of November 2009 has a chapter on vocational training. Its four main objectives are: match training with the needs of the economy, broaden the scope of the training on offer, integrate the various vocational training curricula into the education system and set up cooperation between the public education system and the social partners in designing and carrying out training initiatives. The Committee invites the Government to continue to provide information on the measures taken to improve qualification standards and coordinate education and training policies with potential employment opportunities.

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Employment strategy and trends. The Committee notes the Government’s report received in June 2008, which replies in detail to the matters raised in the 2007 observation. In 2006–07, the Spanish economy went through a period of stable and sustained growth (3.9 per cent in 2006 and 3.8 per cent in 2007), with high rates of job creation (3.2 per cent and 3 per cent, respectively). The employment rate is 65.6 per cent and the unemployment rate fell to 8.3 per cent of the active population, foreshadowing the achievement of the objectives set for 2010 in the context of the European Employment Strategy. The Government reaffirms in its report that the active employment policy is intended to achieve full, productive and freely chosen employment, as provided for in Article 1, paragraph 2, of the Convention. The objectives governing the current employment policy are quality employment and the improvement of human capital in a context of social dialogue, with these objectives being set out in the tripartite declarations of 2004 and 2006, to which reference was made in the 2007 observation. As requested, the Government provides information on the impact of Act No. 43/2006 of 24 December 2006, to improve growth and employment, which sought to promote permanent contracts, stimulate the conversion of temporary contracts into permanent contracts and reduce employers’ contributions. The Committee once again notes with interest the incentives granted for the permanent recruitment of unemployed women (as well as for victims of gender violence), women recruited within 24 months of childbirth and those recruited after five years of inactivity in the labour market. Incentives are also provided for the recruitment of persons over 45 years of age, young persons between 16 and 30 years of age and persons in other special categories and situations. Of the 1,300,412 contracts registered by the Public Employment Service between July 2006 and December 2007, 95.9 per cent were permanent (286,961 contracts were concluded with women, 125,600 with young men between 16 and 30 years of age, 122,686 with persons over 45 years of age and 72,763 with workers with disabilities). The Committee hopes that the Government will continue to provide information in its next report on the measures adopted to generate high-quality employment and to ensure the integration of workers who have benefited from Act No. 43/2006 into the labour market. The Committee requests information on the application, supervision and evaluation of Government policies to facilitate full employment by women, combat youth unemployment and help older workers to continue participating in the labour market.

Labour market policies. With regard to the regional disparities mentioned in previous comments, the Government refers to the decentralized management of employment policy while seeking to preserve the unity of the market and territorial cohesion. While certain autonomous communities have achieved levels close to full employment, with an unemployment rate of around 6 per cent and an employment rate of near to 60 per cent of the population aged 16 and above (Madrid, Cataluña and the Balearic Islands), the autonomous communities of Extremadura and Andalucia, as well as Asturias, continue to have relatively high unemployment rates. The Committee hopes that the next report will also indicate the progress that has been achieved through measures adopted at the national level and by the autonomous communities to ensure the territorial cohesion of the labour market and reduce differences in unemployment rates between the autonomous communities.

Furthermore, the Committee invites the Government to include in its report, its own observations on the points raised in the communication of the Trade Union’s Confederation of Workers’ Commissions, which was transmitted in October 2008.

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1. Articles 1, 2 and 3 of the Convention. Employment strategy and trends. The Committee notes the Government’s report for the period ending June 2006 and the very detailed description of the legal provisions adopted during that period with a view to promoting full, productive and freely chosen employment. The Committee notes that an active employment policy continues to be implemented within the context of the European Employment Strategy as part of the National Reform Programme. This programme sets the objective of achieving an employment rate of 66 per cent by 2010, which is one point higher than the current European average. The first objective of the Declaration for Social Dialogue “Competitiveness, stable employment and social cohesion”, signed on 8 July 2004, was the reduction of precarious employment. In the agreement to improve growth and employment, signed by the Government and the social partners on 9 May 2006, there is an enumeration, in the first place, of measures intended to encourage and support employment, permanent contracts and the conversion of temporary employment into permanent employment through the provision of incentives and encouragement for new permanent contracts and the reduction of employers’ contributions to the Wage Guarantee Fund and for unemployment. Secondly, the agreement includes measures to restrict the successive use of temporary contracts, and to introduce greater transparency into the subcontracting of works and services between enterprises when they share the same workplace. The strengthening of the human and material resources of the Labour and Social Security Inspectorate is also envisaged, with emphasis being placed on the participation of the social partners in the determination of its objectives and programmes. Thirdly, measures have been agreed upon, in the first place, to improve the effectiveness of the active employment and activation policies of the national employment system and, in addition, to improve the protection of workers against unemployment, both through unemployment protection and the benefits of the Wage Guarantee Fund. The Committee notes with interest that the objectives of full and productive employment referred to in the information provided by the Government in its report are fundamental objectives of tripartite agreements. The Committee would be grateful to continue receiving information on the results achieved in the implementation of Law No. 43/2006, of 29 December, to improve growth and employment, and on the experience of the social partners in relation to the application of the Convention.

2. Labour market policies. Regional disparities in employment and unemployment rates continue to attract attention, with high rates of unemployment and lower employment rates occurring in the South and West, in comparison with the more favourable situation in the North East and Centre with regard to employment, unemployment and wages. In this duality, Asturias has the lowest employment rate (43.2 per cent) and Ceuta and Melilla the highest unemployment rates (17.1 per cent). The Committee requests the Government to continue providing information on the results achieved through the measures adopted to improve territorial cohesion and reduce the differences between regions, including data on the active employment measures adopted by the autonomous communities.

3. The Committee notes that for the second successive year the unemployment rate has fallen, and that it was 9.2 per cent in 2005. Although the unemployment rate for young persons has fallen by 2.4 points in relation to 2004, it is still 19.7 per cent and young persons continue to be an underprivileged category requiring action to increase their capacity for vocational integration and to improve their employability. The participation rate of women has increased by 7.8 per cent and that of men by 4.2 per cent, although the employment rate of women is lower than the European average and their employment conditions continue to be worse than those of men. Furthermore, according to the data supplied by the Government, the incidence of long-term unemployment among unemployed men is 24.5 per cent, while the figure for women is 32.5 per cent. The Committee asks to continue being provided with information on the measures that are being taken and their results in improving the participation rate and the employability conditions for young persons and women.

4. The Committee notes that the long-term unemployed are one of the categories towards which efforts are being directed (553,400 persons in 2005), especially through training to improve their employment opportunities. The Committee requests the Government to continue providing information on the measures adopted and the results achieved in reducing the level of long-term unemployment.

5. The Committee notes the measures that have been taken by the Government to regularize the situation of foreign workers residing in Spain, with a consequent increase in the number of persons covered by the social security system. The process for the legalization of foreign workers involved the registration, as of 31 December 2005, of 465,961 foreign nationals. In 2006, the number of new foreign workers registered amounted to 601,025 new persons being covered. The Committee requests the Government to continue providing information on the measures adopted to ensure that foreign workers are integrated into the labour market and that they obtain stable and productive employment.

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1. Implementation of an employment policy within the framework of a coordinated economic and social policy. The Committee notes the Government’s detailed report for the period ending June 2004 which includes information on the National Action Plan for Employment, 2003. The Committee notes that in December a new Labour Act was adopted (Act No. 56/2003 of 16 December) creating a National Employment System comprising the State Public Employment Service and the Public Employment Services of the Autonomous Communities. The Committee hopes that in its next report, the Government will include information on the results achieved by the modernization of the public employment services and the revision of the active measures that have been carried out. Bearing in mind the persistence of regional inequalities (unemployment rates range from 6.1 per cent in La Rioja to 18.6 per cent in Andalucia), the Committee requests the Government to include information on the manner in which the responsibilities of the autonomous employment services and the active employment measures adopted within the purview of the Autonomous Communities have been distributed.

2. The Committee notes that during the period covered by the report, the employment rate was barely above 60 per cent and unemployment amounted to 11.3 per cent in 2003. Although employment of women rose by 1.9 per cent, male unemployment increased. The Committee refers to its previous direct request and trusts that, in its next report, the Government will provide information on the measures adopted to continue to improve employment rates and to pay attention to the needs of the most deprived categories of workers such as young people, immigrants, older workers and the long-term unemployed (Articles 1 and 2 of the Convention).

3. Participation of the social partners. In its report, the Government refers to the tripartite agreements reached during the period 2002-04 by the adoption of Act No. 45/2002 of 12 December 2002 reforming the unemployment protection system and improving work capacity, and Act No. 56/2003 on employment. The Committee notes that on 8 July 2004, a Declaration for Social Dialogue was adopted designed to encourage competitivity, stable employment and social solidarity. The Committee recalls the importance it attaches to taking into account the views of the social partners regarding the matters covered by the Convention and asks the Government to indicate in its next report the follow-up and evaluation given to the directions laid down in the Declaration for Social Dialogue.

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The Committee notes the Government’s detailed report for the period ending June 2002 and its reply to its previous comments.

1. Articles 1 and 2 of the Convention. The Government indicates that during 2001 and the first half of 2002 there was an acceleration in economic growth and employment. During this period, the growth in employment estimated by the Survey of the Active Population concentrated in non-agricultural sectors of the economy, where 303,300 more jobs were created, 171,200 of which were in services and the others principally in construction. Unemployment was estimated to be 11.3 per cent in 2002, the lowest rate since 1980. Full-time employment rose by 2.3 per cent and part-time employment increased by 3.2 per cent. The number of self-employed grew slightly. Although the unemployment rate for men was 9.1 per cent of the active population in 2001, the rate for women was 18.8 per cent. The percentage of long-term unemployed fell by 3.4 per cent to reach 42.7 per cent of the total unemployed. Significant regional differences persist in employment and unemployment rates, with the lowest employment rates and high unemployment being generally found in the south and west due to the lower levels of economic development of these regions. The unemployment rate of young persons fell, although it remained disproportionately high at 24.7 per cent.

2. The Government indicates that by means of its employment policy measures it has continued to promote the creation of stable employment through incentives for categories such as women, those who have been unemployed for over six months, persons over 55 years of age and those suffering from social exclusion. The recruitment of part-time workers has also been promoted, with the extension of incentives from permanent full-time jobs to include permanent part-time contracts. In its Plan of Action for Employment for 2002, the Government emphasizes the following information concerning specific categories of workers.

Young persons. Action to combat youth unemployment has focused on employment, training, retraining, labour practices and vocational guidance with the objective of vocational integration. In 2001, the National Employment Institute carried out a total of 337,595 measures of this nature for young persons under 25 years of age before they had been unemployed for six months. Although the situation of young persons on the labour market has improved in terms of unemployment, there are also fewer young persons in employment as a result of the trend whereby young persons stay in school or university for longer periods.

Women. The objective has been to achieve the full integration of women into the labour market through measures such as the Act on the reconciliation of work and family life and the Royal Decree respecting cash benefits for maternity and risks during pregnancy. During the biennium 2000-01, women achieved the highest rate of integration into active life, with 311,800 more active women in 2001 than in 1999, and the creation of employment, with 528, 200 more women in employment in 2001 than in 1999.

The long-term unemployed. The measures taken to combat long-term unemployment have included preventive measures and vocational integration, combined with measures for the reintegration of the long-term unemployed intended to provide them with the opportunity of a new start through the provision of individual vocational guidance services. Some 42.7 per cent of the unemployed do not find a job for over one year. This figure is 47.1 per cent in the case of women and 46.7 per cent for adult workers. Of the 944,700 workers who have been unemployed for over one year, 355,207 have been unemployed for between one and two years and 589,493 for over two years.

The Committee trusts that the Government will continue to provide information on the results achieved by the measures taken to promote lasting and high-quality employment among those categories of persons who are in a vulnerable employment situation.

3. Article 3. The Government indicates that the urgent labour market reform measures, adopted under Act No. 12/2001 of 9 July 2001, were not agreed to by the social partners, with the result that the labour reform was undertaken unilaterally. The Government adds that social dialogue continues to play an important role in the development of measures to promote employment and the evaluation of employment policies and programmes. The Committee recalls that, in accordance with Article 3 of the Convention, the objective of such consultations is to take fully into account the experience and views of the representatives of the persons affected and to secure their full cooperation in formulating the employment policy and enlisting the support that is necessary for its implementation. In this respect, the Committee trusts that the Government will provide information in its next report on the manner in which the representatives of the persons affected are consulted concerning the employment policy and the way in which account is taken of their experience and views in both the formulation and implementation of employment policy.

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The Committee notes the information contained in the Government’s detailed report for the period ending 1 September 2000 and its reply to previous comments.

1. Article 1 of the Convention. The Government states that GDP increased by 4 per cent in 1998 and 3.7 per cent in 1999, due mainly to increased domestic demand.  Inflation remained quite low, at 1.4 per cent in 1998 and 2.9 per cent in 1999, due to the Government’s drive to enter the European Monetary Union. Employment grew 3.4 per cent and unemployment decreased by 8.8 per cent in 1998, compared with 4.6 per cent and 14.9 per cent respectively in 1999. The participation rate increased to 54.2 per cent (68.7 per cent for men and 38.3 per cent for women) and the unemployment rate went down 2.9 per cent to 15.9 per cent, although the slight change in statistical methodology allows only a rough comparison between 1998 and 1999. The percentage of long-term unemployed decreased by 3.4 per cent to 49.8 per cent of total unemployment. Growth in employment occurred mainly in services and construction. Full-time work grew by 6.5 per cent and part-time work grew by 10.2 per cent. The number of self employed slightly decreased. Substantial regional differences in rates of employment and unemployment persist, with generally poorer rates of employment and higher unemployment in the south and west, due to lower levels of economic development in these regions. The unemployment rate for youth decreased, partly due to more youth staying in school for longer periods.

2. The Government states that it is concerned with both the quantity and quality of employment. The objectives of the Action Plan for 1999 include promoting an entrepreneurial culture for development of SMEs and micro-enterprises, reducing non-wage labour costs and administrative burdens on enterprises, and improving public employment services. Active measures increased from 19 per cent of total spending on employment promotion and provision for the unemployed in 1997 to 37 per cent in 2000. The Government has created numerous financial incentives for employers to hire unemployed youth (less than 30 years old), women, people with disabilities, and older workers (over 45 years old). It has developed a new National Programme for Vocational Training, consolidated active policies for people with disabilities and amended legislation to encourage labour contracts of unlimited duration and reduce the use of temporary contracts. The Action Plan for 1999 also emphasizes the importance of local development, in particular the importance of improving the tourism services sector and promoting the use of information technology. The Government encourages internal migration to redress regional imbalances in the labour market. It aims to provide more individually tailored employment services to prevent people from becoming unemployed for long periods of time. And the Government fosters micro-enterprises and self-employment by allowing lump sum conversions of unemployment benefits for start-ups, including disability benefit for people with disabilities. The Committee would appreciate receiving further information on the impact of these and other measures taken on employment promotion.

3. Article 2. The Committee notes with interest that the Government has introduced since 2000 new statistical indicators for prevention and activation, which will be increasingly important given the aim of decentralizing employment programmes. It looks forward to receiving further information in future reports on the effect of this change in formulating and evaluating employment policies and programmes.

4.­ Article 3. The Committee notes with interest that, according to the Government, social dialogue played an important role in developing the Action Plan for 1997, which has had a positive impact on employment promotion, and the Action Plan for 1999 calls for strengthening social dialogue. Please continue to supply information on the manner in which representatives of workers, employers and other groups affected, such as rural and informal sector workers, are consulted on the development, implementation and evaluation of employment policies and programmes, particularly in light of the process established to transfer responsibility for employment promotion to the autonomous communities.

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The Committee notes the comments by the General Union of Workers (UGT), transmitted to the Government in March 1999. The UGT affirms that the improvement of the employment situation in Spain has more to do with the short period of economic growth in recent years than with real government policies or appropriate measures, as referred to in Article 2 of the Convention. The number of people engaged in short-term work has scarcely dropped and 33 per cent of the active population is still in that category. The UGT alleges that government measures go against the objectives of the Convention as the Government has carried out an accelerated and indiscriminate process of privatizing the public business sector with obvious reductions in public investment but without any employment-creation measures. The UGT suggests the adoption of measures designed to promote an effective employment policy. The Committee notes that the Government has not communicated its comments on the matters raised by the UGT. The Committee refers to its observation relating to the Employment Service Convention, 1948 (No. 88) and would be grateful if the Government would provide a reply in its report due in the year 2000 to the matters raised by the UGT, including the required information on the employment situation which was requested in its 1998 observation in regard to Convention No. 122.

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1. The Committee notes with interest the full and detailed report provided by the Government for the period ending June 1998. The Committee notes that the recovery in employment growth which it noted in its previous observation has been maintained for the period in question with the result that unemployment rates are continuing their downward trend and should, according to the OECD, fall below 20 per cent in 1998, compared to 23.2 per cent in 1995. The labour market trends described by the Government show encouraging developments, such as the continued increase in the number of workers offered contracts of employment without limit of time; however, other aspects of unemployment continue to give cause for concern, in particular the situation of women, whose unemployment rate is double that of men, of unemployed persons under the age of 30, who account for more than half the total number of the unemployed, the persistently very high rate of long-term unemployment and the high concentration of unemployment in certain regions.

2. The Committee notes the important labour market reforms decided on the basis of the Employment Stability Agreement concluded in April 1997 between employers' and workers' organizations. The Committee notes in particular that in order to reduce the number of fixed-term employment contracts, a new type of contract without limit of time combined with a reduction in the level of compensation to be paid in the event of unjustified dismissal, has been introduced for a four-year period for workers under temporary contracts and groups of the population who are experiencing particular difficulties, such as young persons, women, the long-term unemployed and workers over the age of 45. The regulations applicable to insertion and training contracts for young persons have been changed in order to provide better safeguards to the beneficiaries of these contracts. The Committee notes that these measures have been decided following dialogue with the social partners and on the basis of a critical evaluation of the results obtained from the previous measures, and it requests the Government to provide detailed information on the application of these new provisions and their impact in terms of the effective and lasting integration of those concerned into employment.

3. In response to the Committee's request on the manner in which the employment policy falls "within the framework of a coordinated economic and social policy" (Article 2 of the Convention), the Government emphasizes that creating employment is the central objective of its general economic policy and the various sectoral policies which it is implementing in accordance with the guidelines issued by the extraordinary European Council on Employment, held in Luxembourg in 1997. The Government states that its commitment to the European Union project for economic and monetary union has enabled it to re-establish the necessary balance for the creation of employment. In addition to its policy to reduce inflation, interest rates and the budget deficit and to deregulate markets, the Government describes a series of sectoral measures to promote the competitiveness of the economy. With reference to the Job Creation in Small and Medium-Sized Enterprises Recommendation, 1998 (No. 189), the Government indicates that measures to facilitate financing and investment in these enterprises are an integral part of its employment policy. The Government also describes the manner in which the new national occupational training programme, established under the tripartite agreements of December 1996, ensures greater harmonization of initial and further training with prospective employment opportunities, in particular by establishing a national system of qualifications.

4. The Committee hopes that, in the macroeconomic context described by the Government and as a result of the reforms that it is implementing in consultation with the social partners, the Government will be in a position to provide information in its next report on a continued improvement in the employment situation and a significant reduction in the unemployment rate, which remains very high.

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1. With reference to its previous observation and to the discussion held in the Conference Committee in June 1995, the Committee notes the Government's report for the period ending June 1996. It also notes the comments received from the Confederación Sindical de Comisiones Obreras (CC.OO.) and the General Workers Union (UGT).

2. The Committee notes the detailed description of developments in employment and unemployment provided by the Government from which it emerges that the upsurge in employment in 1995 has resulted in a slight decrease in unemployment levels, which dropped from 24.2 per cent in 1994 to 22.9 per cent in 1995. According to the OECD, it should stabilize at this very high level in 1996. The Committee observes the persistence of the most serious aspects of unemployment, such as the rate for young people, the growing proportion of long-term unemployment and strong regional disparities. The CC.OO. emphasizes that Spain has both the highest unemployment rate among developed countries and the highest incidence of precarious employment, which is linked, in its view, to the frequency of industrial accidents. The UGT raises the high labour turnover: deregulation, unstable employment contracts and low wages are policies which impact unfavourably on qualifications and competitivity.

3. The Government states that its employment policy continues to rely on two main approaches: first, employment on contracts without limit of time and, secondly, different types of fixed-term contracts introduced under the reform of the labour market in order to benefit employment of the categories of unemployed experiencing the greatest difficulties. The Committee notes the adoption of new incentives to employ long-term unemployed and provisions governing the content of training in apprenticeship contracts. The Committee requests the Government to supply in its next report any available assessment of the results obtained from the various employment and training incentives it describes.

4. The Committee appreciates the information supplied but notes that the Government's report is restricted essentially to describing labour market and training policy measures which do not in themselves seem yet to have produced a significant reduction in unemployment levels. It regrets that the Government has not responded to the reiterated request to supply information enabling an assessment of how its employment policy falls "within the framework of a coordinated economic and social policy" (Article 2 of the Convention). The Committee trusts that the Government's next report will, in response to the questions under Article 1 in the report form approved by the Governing Body, specify how the decisions taken on, particularly, monetary and budgetary policies, price, income and salary policies and investment policies contribute effectively to promoting "as a major goal" full, productive and freely chosen employment. It also requests the Government to continue to supply detailed information on how the representatives of the sectors concerned, and particularly representatives of employers and workers, are consulted on the subject of employment policies, in accordance with Article 3.

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1. The Committee notes the Government's detailed report for the period ending June 1994, with which it transmits the comments of the General Union of Workers (UGT) on the application of the Convention and its response to these comments. The Committee once again wishes to express its gratitude to the Government which, by providing precise and reasoned responses to most of the points raised in its previous observation, shows the importance that it attaches to the continuation of a well-founded dialogue with the supervisory bodies concerning the application of this Convention.

2. The Government provides a detailed analysis in its report of developments in the active population, employment and unemployment in 1992 and 1993. The deterioration in the employment situation, which was appreciable during the previous period, has worsened. With a decline of 1.9 per cent in 1992 and 4.3 per cent in 1993, the reduction in the volume of employment was sharp, particularly in industry. The unemployment rate rose from 16.1 per cent in 1991 to 18.1 per cent in 1992 and reached the unprecedented level of 22.7 per cent in 1993 (it is as high as 40 to 50 per cent in the 16 to 24 age category). Despite the recovery in 1994, the OECD forecasts that the unemployment rate will continue to rise to over 24 per cent. Furthermore, the rise in unemployment has further accentuated the substantial regional differences in employment levels. The UGT emphasizes the precariousness of the labour market as a result of the increased incidence of temporary employment, which accounts for around one-third of total employment, as shown by the statistics provided in the report.

3. The Government describes the two priorities of its employment policy, namely the promotion of recruitment under contracts of indeterminate duration and the integration of young persons into the labour market. It states that employment promotion contracts, which made it possible to recruit workers on fixed-term contracts without the obligation to prove the temporary nature of the work, have been abolished, except for categories of unemployed persons with particular difficulties, such as workers aged over 45, persons with disabilities and the long-term unemployed. The transformation of temporary contracts without limit of time continues to be promoted by the incentives that the Government described in its previous report, which have been extended to cover part-time work, which is being encouraged as a means of sharing existing employment. The integration of young persons is being promoted through practical trainee contracts and apprenticeship contracts, for which incentives are also available to promote their transformation into permanent contracts. In the context of active employment promotion measures, the Government also refers to the subsidy for the recruitment of unemployed persons for work of general interest in the service of local communities and public bodies. Furthermore, the measures taken under the National Vocational Training and Integration Plan (FIP) are now directed solely towards unemployed workers.

4. The UGT emphasizes the harmful consequences of precariousness on the rights and skills of workers and considers that the employment policy measures adopted over recent years have not led to any reduction in the rotation of temporary workers, which has been identified by the Government as one of the structural problems of the national economy. The UGT states that it is particularly concerned by the introduction of the apprenticeship contract, which permits recruitment at a wage that is lower than the inter-occupational minimum wage and deprives young workers of social protection in the event of sickness or unemployment. It is also concerned at the new temporary work enterprise regulations, which encourage the development of precarious forms of employment, as well as at the introduction of individual or collective terminations of employment for economic reasons, which empower employers to turn any permanent contract into a temporary contract at their discretion. The UGT expresses more general concern at the deregulation and flexibility measures which only leave workers with the option of defending their rights through the courts. In its reply, the Government states that the level of remuneration of young persons covered by practical trainee or apprenticeship contracts is determined so as to compensate the training provided by the employer through a reduction in wage costs. It states that temporary work enterprises are not absolved from the general requirement to justify the use of fixed-term contracts.

5. The Committee notes the Government's commitment to promoting employment through contracts without limit of time, even though the measures implemented for this purpose do not appear on their own to have prevented the continuation of the worrying rise in unemployment and the decline in employment security. It notes in this respect that the Government recognizes that employment promotion contracts ceased to produce the desired results when the economy went into recession. The Committee is also bound to recall that it is the responsibility of the Government to ensure that employment promotion measures are not diverted from their objective of achieving the lasting integration of beneficiaries into employment. In particular, it requests the Government to describe the training content of the various integration contracts for young persons and to state whether guarantees are established to ensure that the training is provided. The Committee also notes that the current reform of labour law is intended to promote the creation of employment through the introduction of greater flexibility on the labour market. The Committee, which is not unaware that certain excessive rigidities can be unfavourable to employment, nevertheless emphasizes that structural reforms of the labour market should not have the effect of unduly reducing the protection of workers, and that the expected costs and advantages should be shared equitably by the parties concerned. Furthermore, the Committee is of the opinion, as it has noted in its General Survey on Termination of Employment, that the appropriate minimum level of protection provided by labour law is not only reconcilable with the promotion of employment, but encourages it.

6. The Committee notes the Government's detailed explanations on the issue of the definition of suitable employment, the refusal of which may result in loss of entitlement to unemployment benefit. It will not fail to take this information into account when examining the application of the Unemployment Provision Convention, 1934 (No. 44).

7. With regard to the effect given to the provisions of Article 3 of the Convention, the Government refers to consultations with the Economic and Social Council, to which the draft reform of the labour market was submitted for its opinion. The Committee would be grateful if the Government would continue to supply information on any new consultations held with the representatives of the persons affected, and in particular the representatives of employers and workers, concerning employment policy, with an indication of the opinions expressed and the manner in which they were taken into account. It recalls in this respect that the consultations required under this fundamental provision of the Convention should relate to all the aspects of economic policy that affect employment. The Committee also notes that, according to the UGT, all the trade union organizations expressed their firm opposition to the recent labour market reform measures.

8. More generally, the UGT regrets, in the context of very high unemployment and increased precariousness, the absence of a policy for recovery and of industrial and training policies which would contribute to renewing the industrial fabric and preparing young persons for occupations of which society has real need. With reference to its previous observation, the Committee notes in this respect that the Government's report does not contain the information requested by the report form in order to enable it to evaluate the manner in which the employment policy measures are adopted "within the framework of a coordinated economic and social policy" (Article 2). The Committee recalls the employment policy, in the meaning of the Convention, is not limited to labour market policy and it requests the Government to specify in its next report how the measures adopted in such fields as fiscal and monetary policies, prices, incomes and wages policies, investment policy, education and training policies, as well as policies designed to ensure balanced regional development, contribute to the achievement of the objectives set out in the Convention. The Committee notes from the conclusions of the latest OECD study that unemployment is the most serious economic problem in Spain and it hopes that in its future reports the Government will show the success with which it is pursuing ",as a major goal, an active policy designed to promote full, productive and freely chosen employment" (Article 1).

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1. The Committee took note of the very full and detailed report supplied by the Government for the period ending 30 June 1992, which transmits comments relating to the application of the Convention from the General Union of Workers (UGT) and the Trade Union Confederation of Workers' Committees (CC.OO.). It is particularly grateful that the Government has made substantial and precise replies to the Committee's previous comments, as well as to the points raised by the two trade union organizations.

2. The Committee notes the detailed statistics and analyses of developments in the active population, employment, underemployment and unemployment for the years 1990 and 1991. Supplemented for 1992 by data contained in OECD surveys, this information shows the persistence of a worrying employment situation, characterized in particular by a continuing high level of unemployment. The strong economic growth achieved over previous years has been followed, since 1990, by a slow-down which has become even more marked since the beginning of 1992 and which has affected the creation of jobs. Despite the slower growth of the active population, the unemployment rate, which was 16.3 per cent in 1990 and 1991, has risen again and is estimated at nearly 18 per cent in 1992. The employment situation is still characterized by important disparities between regions, sexes and age groups, which continue to be affected very unequally by unemployment and underemployment. The regional variation in unemployment is still considerable, with rates ranging between 10 per cent (Rioja) and 26 per cent (Andalucia). A decrease in the unemployment rate for women and young persons over the period has been accompanied by an increase in the number of unemployed men in the age groups in which they are most active. Furthermore, the increase in temporary employment, which now accounts for more than one-third of all employment, bears witness to a trend towards more precarious employment which has already been noted by the Committee. The UGT and the CC.OO. express concern at the data on employment and unemployment and emphasize, in particular, the harmful effects of the development of more precarious forms of employment not only for the workers but also for the national economy.

3. The Government states that in order to combat the growing unemployment and its particular impact on certain categories of the active population more effectively it has harmonized and rationalized all the measures taken by the State to encourage recruitment. It refers in this respect to the adoption of Act No. 22/1992 of 30 July 1992 respecting urgent measures for the promotion of employment and the protection of unemployment, the provisions of which aim in particular to strengthen active measures to encourage the recruitment into full-time employment and employment without limit of time of unemployed persons who have particular difficulty in entering the labour market, such as young persons, older workers, women and the long-term unemployed. In order to ensure that these measures achieve their objective and to avoid abuse, the grant of the incentives is subject to the net creation of jobs by the enterprise, which also has to undertake to maintain the level of employment for three years. Furthermore, the minimum duration of employment promotion contracts has been raised from six to 12 months, while full-time integration or training contracts no longer allow for an exemption or reduction of employers' social security contributions. The Government also describes other employment promotion programmes, such as the special employment programmes in the public sector and the rural employment plan. It also refers to the National Vocational Training and Integration Plan, under which priority is now given to the training for employment of young persons who are failures at school, the long-term unemployed and women with low skill levels.

4. The UGT and the CC.OO. make a series of allegations relating to the provisions and the circumstances of the adoption of Legislative Decree No. 1/1992 of 3 April 1992 respecting urgent measures for the promotion of employment and protection of unemployment. The Committee has examined the allegations relating to entitlement to unemployment benefits and their calculation in relation to the relevant provisions of Convention No. 102, and refers to its comments on the application of that Convention. However, it notes that, with regard to the circumstances which result in the suspension or reduction of entitlement to the above benefits, the CC.OO. considers that the new definition of suitable employment allows an excessive extension of the concept which is likely to be applied in practice in a manner which is contrary to the objective of freely chosen employment, as set out in Article 1, paragraph 2(c), of the Convention. The Government states that this definition remains essentially unchanged and responds to the need to limit the protection in question to cases of temporary and involuntary unemployment. The Committee requests the Government to supply information on the implementation of this provision in relation to the principle of freely chosen employment.

5. The two organizations also accuse the Government of having eliminated, by means of the above Legislative Decree, the opportunity which was provided to the unemployed who wished to create their own enterprise to receive their unemployment benefit in the form of a lump sum. They consider that it has therefore revoked an important measure for the promotion of self-employment. The Government justifies the elimination of this measure by its concern to regularly review the various employment promotion programmes taking into account the results that they have achieved. It states that in this case the high proportion of rapidly abandoned activities undertaken as a result of this measure bore sufficient witness to its ineffectiveness and it states that new measures for the promotion of self-employment are under examination. The Committee recalls the conclusions concerning self-employment promotion adopted by the Conference (77th Session, June 1990) and would be grateful if the Government would supply information in its next report on any new measure adopted to this effect.

6. More generally, the UGT considers that Legislative Decree No. 1/1992 constitutes a regression with regard to the objective of an active policy to promote employment, in the sense of Article 1 of the Convention. According to the UGT, employment is regarded as a residual variable with the labour market bearing the burden of structural adjustments. The above central trade union organization notes that the proportion of the budget devoted to active measures is still relatively low in relation to most other European countries, particularly taking into consideration the Spanish unemployment rate. It concludes that it is necessary to reorient the employment policy since greater flexibility on the labour market has not had the positive effects on the creation of jobs which were envisaged. The Government emphasizes that the new provisions are aimed at giving better guarantees for the integration of the persons concerned into the labour market and at ensuring that the various programmes are not used with the sole aim of reducing labour costs. It states that a large proportion of temporary contracts, when accompanied by incentives, are converted into contracts without limit of time or are renewed. The Committee would be grateful if the Government would describe the extent to which the various programmes contribute to the effective and lasting integration of the persons concerned into employment. Furthermore, in view of the rise in unemployment among the categories of the active population which are not covered by measures to encourage recruitment, it requests the Government to indicate the methods which it intends to use to ensure that these measures do not result in a redistribution of existing jobs between the various categories of the active population, rather than the creation of new jobs.

7. Furthermore, in the opinion of the UGT and the CC.OO., the Government's recourse to the unusual procedure of a Legislative Decree to adopt these measures bears witness to its desire to avoid the preliminary tripartite dialogue required by Article 3 of the Convention as well as the necessary democratic debate. The Government considers that it satisfied this latter requirement by submitting the Legislative Decree to Parliament, under the procedure which resulted in the adoption of Act No. 22/1992 of 3 July 1992. It also states that it only had to have recourse to an emergency procedure by reason of the rejection by workers' organizations of its proposal of June 1991 to open a vast negotiation to revise all the procedures for recruitment, the labour ordinances, and the systems for the protection of unemployment and vocational training, with a view to the conclusion of a "social pact for progress" with the social partners. The Committee is bound to express its concern at the difficulties which appear to be encountered in establishing a tripartite dialogue concerning employment policy measures. It notes in this respect the recent establishment of the Economic and Social Council and would be grateful if the Government would indicate whether this institution has examined matters relating to employment policy, or whether it is envisaged that it will do so.

8. Finally, the Committee recalls that under Article 2, the measures to be adopted with a view to achieving these objectives must lie within "the framework of a coordinated economic and social policy". In order to enable it to evaluate the effect given to this fundamental provision of the Convention, the Committee would be grateful if the Government would supply in its future reports the information required in this respect by the report form.

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1. With reference to its previous comments, the Committee is grateful for the very detailed information sent by the Government in its report for the period ending 30 June 1990. The Government indicates that the employment promotion policy implemented during the period covered followed the same course as has been pursued since 1984: the programmes to assist job creation in the private sector and the special employment programmes for the public sector have been maintained. Since 1990, special employment plans for depressed rural areas have been implemented by the Autonomous Communities. Special measures to promote employment include an increase in the jobs on offer in the public sector, tax incentives granting tax reductions for job creation, and assistance to geographical mobility, day-care centres for children and migrant workers. The most recent objectives of the National Plan for Training and Occupational Integration concern the integration of young workers into the labour market and the vocational training of workers with family responsibilities.

2. According to the information supplied, there has been a sustained increase in employment, of approximately 4 per cent in 1989, particularly in the construction and services sectors, but there have been substantial decreases in the rural sector and in the Autonomous Communities of Andalucia and Extremadura (where the unemployment rate is now around 26 per cent). Employment of wage earners increased by 6.2 per cent, particularly involving temporary workers. Their proportion of wage-earning employment has greatly increased from 15.6 per cent in the second quarter of 1987 to 28.2 per cent in the fourth quarter of 1989. The number of persons in permanent jobs has increased by 101,200 and in temporary jobs by 405,400. There are more male than female employees in permanent employment (73.4 per cent in respect of men as opposed to 67.8 per cent in respect of women). Temporary contracts are also more frequent among young workers. However, taking account of the substantial increase in the economically active population - particularly in the case of women entering the labour market - the unemployment rate is particularly high (approximately 20 per cent or more between 1986 and 1988, and around 17 per cent in 1989 and 1990). Long-term unemployment still accounts for approximately 50 per cent of total unemployment, and the unemployment rate is three times higher among young workers than among other categories of workers.

3. In reply to previous comments, the Government provides detailed information on the results of the different recruitment procedures designed to promote employment which make it possible to recruit specific categories of workers which encounter difficulties in entering the labour market (young people, women, older workers, the disabled). The Committee takes note of the document concerning precarious employment, submitted by the Trade Union Confederation of Workers' Committees in September 1990, which points out that instability and fleeting attendance at the place of work not only destroy the basic concepts of democratic society but also lead to a supply of labour of low productivity. The Committee recalls its comments on the application of the Termination of Employment Convention, 1982 (No. 158), in which it requested particulars of the use made of certain types of contracts of employment which might avoid the protection provided for in the above Convention, and would be grateful if the Government in its next report on Convention No. 122 would continue to provide information on the progress achieved in satisfying the needs of all categories of persons that frequently encounter difficulties in finding lasting employment.

4. The Committee notes the agreements reached since January 1990 in the discussions between the Government and the trade unions. The Committee hopes that, in accordance with the provisions of Article 3 of the Convention, consultations with the representatives of the persons concerned will make it possible for the latter's experience and views to be taken fully into account and for their full co-operation to be obtained in formulating and implementing employment policy. It would be grateful if the Government would continue to provide the information required by the report form to show developments in the area of employment policy, including details on the results of employment promotion measures both nationally and in the Autonomous Communities.

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1. With reference to its observation, the Committee takes note of the communication from the Workers' Trade Union (USO), of Asturias, dated 17 July 1989, and of the comments sent by the Government, dated 2 February 1990.

2. In its communication, the USO refers to the restructuring and reindustrialisation process which is affecting all sectors, causing the loss of many jobs and, in some cases, early retirement. The so-called high technology sectors receive special treatment, and the workers affected may take early retirement. The USO complains that in other sectors, which are much larger than the above sectors in terms of manpower - particularly the small and medium-sized enterprise sector - the workers do not receive equal treatment with regard to early retirement or other social entitlements. The small and medium-sized enterprise sector is affected by total unemployment, and workers in the sector receive retirement pension only at 60 years of age.

3. In its reply, the Government refers to the need to adopt economic and labour adjustment measures in order to facilitate the restructuring and reindustrialisation process. In certain sectors, a policy for industrial, financial and labour adjustment and improvement is being implemented. In the new industrial activities and the areas affected by the adjustment process, a reindustrialisation and employment promotion policy has been implemented. The Government recognises that although the industrial reconversion process is for the general economic good of the whole community, it entails heavy costs of various sorts for the workers affected, particularly for older workers. A set of special social and employment measures has been adopted, exceptionally, to provide adequate assistance to workers affected by the adjustment process. These measures include the possibility of voluntary early retirement for workers over 55 years of age who are affected by the adjustment measures. In addition, the Government grants economic assistance for the early retirement of workers affected by restructuring in enterprises, pending their access to ordinary retirement entitlements at the age of 65. The Government stresses that the above measures have been implemented without discrimination as regards the social and employment coverage of workers affected by the industrial reconversion process and of unemployed workers in general.

4. In its 1989 direct request, the Committee asked for detailed information on the measures adopted or under consideration in order to harmonise the supply and demand of labour with the structural changes resulting from the industrial reconversion policy. With regard to the matters raised previously by the USO, the Committee trusts that in its next detailed report on the Convention, the Government will provide, as called for by the report form, a full description of the principal measures adopted to meet all demand for employment, with particular reference to measures to ensure the matching of labour supply and demand, on both an occupational and geographical basis, including measures for the adjustment of labour to structural change resulting from the reconversion and reindustrialisation process. Please report, in particular, on the employment situation in the Autonomous Community of Asturias and in the small and medium-sized enterprise sector.

5. The Committee also hopes that, in its next report, the Government will include the information asked for in the 1989 direct request, which concerned the following matters:

(a) the results achieved by the Solidarity Fund employment generation project;

(b) the measures that have been taken to collect and analyse statistical and other data concerning the effect on the generation of lasting and productive employment of the various types of contracts introduced in 1984 (the Government may wish to refer to the comments made in 1990 on the application of the Termination of Employment Convention, 1982 (No. 158));

(c) Information on the impact on employment of the entry of Spain into the European Communities, indicating whether measures concerning technological policy have been adopted (the Government may wish to consult Part IV of the Employment Policy Recommendation (Supplementary Provisions), 1984 (No. 169));

(d) Information on local employment initiative programmes and on regional employment programmes, specifying the number of workers involved, the resources allocated and the type of projects adopted, as well as the results achieved in the generation of employment;

(e) information on the results obtained (employment creation projects adopted, number of workers employed, etc.) by the policy of institutional agreements of the Ministry of Labour and Social Security to pursue a policy of full employment;

(f) information on the impact on the employment policy of the amendments to labour legislation (such as the reduction of the working week to a maximum of 40 hours);

(g) detailed information on the employment policy measures adopted and the results of the commitments entered into in the context of the Economic and Social Agreement, or other procedures for consultation with the representatives of the persons concerned, both at the national and regional levels (Article 3 of the Convention).

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The Committee takes note of the communication from the Workers' Trade Union (USO), of Asturias, dated 17 July 1989, and of the Government's observations thereon, dated 2 February 1990. In a direct request, the Committee refers, in particular, to the questions raised concerning the employment policy measures adopted in connection with the restructuring and reindustrialisation process. The Committee recalls that it has already examined and commented on this problem in the past. The Committee hopes that, in its next report, the Government will refer to the 1989 observation and will also provide the information asked for in the direct request.