The number of ERE's in Spain is multiplied by five in the first nine months of the year
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The number of ERE's in Spain is multiplied by five in the first nine months of the year

Date: November 16, 2009 Source: Europa Press
Category: Business
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The number of workers affected by layoffs Employment (ERE) was multiplied by 9 in the first nine months of the year, while the records authorized by the labor authorities were almost five times more than the same period of 2008, according to latest data from the Ministry of Labour and Immigration.

Specifically, 435,564 workers were affected by an ERE through September, compared with 46,947 the same period in 2008, which, in relative terms, implies a rise of 828%. Meanwhile, the number of authorized ERE increased by 362.3% to add 14,823 records, compared with 3,206 one year earlier.

As after 2009, the number of workers affected by employment regulations already exceeds 194%, particularly in 287,476 people, all employees who were involved in an SRE during the whole of 2008 (148,088). Despite the magnitude of the figures in recent months shows that the ERE has slowed, because throughout the year have come to have much higher growth at 1,000%.

THE ALTERNATIVE TO SPANISH GERMAN MODEL, VERY LIMITED

Of the 14,823 registered ERE until September, 13,432 were agreed with representatives of workers and 1,391 are not agreed, affecting, respectively, 378,916 and 56,648 workers.

Of the total of authorized records between January and September 7940 fit into the industry, with an increase of 442%, while 4880 do in services (+306,3%), 1,306 in construction (+408,1% ) and 697 in agriculture (+148%). Through September, the number of cases of termination of employment (redundancies) authorized by the labor authorities increased 66.6% year on year, with 3105 processes. These records meant the dismissal of 50,057 workers, double the same period in 2008.

For its part, the ERE of temporary lay-offs amounted to 10,086 as of September, eight times more than the same period in 2008, while the number of records affected by these increased more than 17, with 386,074 workers.

Chapter ERE deserve the reduction of working hours, an instrument which, like the German model now so fashionable to combine the reduction in working hours with the collection of unemployment benefits, and also entitled to a bonus of 50 % in employer contributions to Social Security for common contingencies provided that the company undertakes to maintain the employment of workers affected for at least the year following the completion of the reduction in authorized hours.

This type of ERE is not used much in Spain, as shown by the data handled by the Ministry of Labour. In fact, of the 435,564 workers affected by ERE in the first nine months, only 17,433 had an ERE-time reduction.

Of course, comparing this figure with that of 2008, shows a significant growth of those affected by ERE of this nature. In fact, the number of workers with cuts in working hours has increased by more than 17, from the 997 affected in the first nine months of 2008 to 17,433 in the same period this year. Most of those affected by time reductions are part of the industry (11,036 affected to September) and services (5676).

As of September, 1632 are approved files shorter working hours, ie that of the 14,823 ERE presented in this period only one in ten correspond to this category. However, when comparing the data with 2008, the number of ERE-time reduction is 12 times higher than the January-September period of 2008.

INDUSTRY SECTOR PUNISHED FOR MORE ERE

Workers in the industry, which includes the automotive industry, took the brunt of the first nine months of the year, when multiplied by more than 11 volumes affected by ERE in this sector.

A total of 344,268 industry employees were immersed in an ERE to September, representing an increase of 1047% over the same period in 2008, when 30,012 were affected.

Most of the industrial workers engaged in employment regulations were subject to temporary suspensions, with 304,055 affected, multiplied by the nearly 20 reported between January and September last year (15,460).

In construction, workers affected by ERE were 14,606, four times more than the same period last year, while in the affected services totaled 70,928, a 515% increase. Agriculture, meanwhile, has also experienced exponential growth of those affected by employment regulations, rising from 1,677 affected in the first nine months of 2008 to 5,762 in the same period in 2009.

The government estimates that between October 2008, the month in which began to rise the number of ERE, and December 2009, a total of 617,600 workers will be affected by an employment regulation file for temporary suspension, of which 247,000 end up being fired.

For now, between October 2008 and September 2009, those affected by temporary suspensions of employment to amounts of 536 405 workers.

The Executive estimates cover the period October 2008-December 2009 because it is precisely these 15 months to be taken into account for the replenishment of unemployment benefits and the granting of bonuses to companies that submit an ERE suspension.

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