The notice from employers about their willingness to back down from an agreement that crosses their red lines has led the Government to rethink part of the labor reform proposal that it had transferred to social agents in recent weeks.

The temporary nature of the contracts and the new system for maintaining employment have focused these changes at the negotiating table held this morning.

The references to a maximum of temporary employment in the workforce such as the 15% that was raised on October 14 - the latest draft prepared exclusively by the Ministry of Labor - have disappeared after receiving strong criticism from employers and unions such as CCOO. Sources of social dialogue explain that in the last text the proposal gives way to maintaining temporary contracts in a list of activities considered occasional and for a maximum period of three months. The resource of these contracts would have a limit depending on the size of the company.

The Government has also withdrawn its proposal for a RED mechanism for flexibility and stabilization of employment, which was a resounding failure when it was presented last week. The RED would allow companies to reduce the working day for a time or suspend the contracts of their workers, as is the case with temporary employment regulation files (ERTE), with benefits in contributions and benefits whenever certain circumstances arise. The businessmen criticized the proposal for being interventionist and entailing more costs for companies. The unions, for their part, returned it on the grounds that the Government was indirectly introducing a system of individualized severance payments that would lower the cost of leaving the companies. They identified it with the Austrian backpack and called it the "prelude to dismissal ".

The Government has promised to present a new text at the next meeting, which will be on November 19.

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