On Wednesday, employers walked away from talks over an extension of partial unemployment measures following the lifting of the state of alert in Spain. The move came after a surprise announcement on 20 May that the government and the left-wing Basque pro-independence party EH Bildu had agreed a pact promising the total abolition of the 2012 reform brought about by the People's Party (on the content of this reform, see article n°120462), which should occur “before the end of the extraordinary measures” adopted by the government to deal with the impact of Covid-19 on the economy and employment.
For the CEOE employer confederation, this agreement represents a de facto breakdown in social dialogue, at a time when the Spanish labour ministry and representatives of employers and trade unions are preparing mechanisms to determine, sector by sector, how to cushion the impact of a slow recovery in activity.
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