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COVID-19 : More than 20% of ERTE will become ERE in the coming months

The coronavirus crisis is causing a strong impact on the Spanish business fabric and, consequently, on the country’s labor market, which already totals close to 900,000 workers immersed in the temporary employment regulation file (ERTE). The situation will worsen in the coming months, as experts estimate that more than 20% of ERTEs will become employment regulation files (ERTE).

The forecast has been launched by the president of the General Council of Social Graduates of Spain, Ricardo Gabaldón, who hopes that many of the companies that are in ERTE will be able to return to their activity soon with the volume of business they had in previous years, although he considers that “The road is going to be very long.” “Other companies, unfortunately, are not going to achieve it and will end up carrying out an ERE, closing or requesting a contest,” said the expert, after stating that it is “very difficult” to quantify how many companies will end up in this situation “when today it is still it can mark an end date for the health crisis. ‘

From their point of view, it will be necessary extend ERTE beyond May 31 even if there has been no alarm. For this reason, he has urged that work be done in this regard with time, so that a “hasty” agreement is not reached.

The number of workers who were in an ERTE touched 900,000 workers between February 1 and 11

Regarding the agreement reached between the Government and the social agents to extend this tool, the representative of the General Council of Social Graduates has said that “small, but important improvements” were achieved, but has stated that he is missing “more proposals” regarding the simplification of procedures. Gabaldón has also missed the lack of social graduates, who mostly advise SMEs and freelancers and are “the thermometer to know what deficiencies they have.”

“The aid received is important, however, its maintenance and continuity is important,” he said, after indicating that there is a lack of direct aid for certain sectors, which “should come from the Government in collaboration with the autonomous communities and municipalities.”

In fact, he believes that although in some regions of Spain have implemented actions to help companies or sectors that they are having the worst, “since they are not coordinated or uniform, several problems have arisen.”

Looking to the near future, he thinks that the aid should be made by sectors, taking care of the worst hit. “Companies and self-employed workers are also holding out as best they can, but they have eaten up the possible resources and savings they had and this cannot be maintained much longer,” he recalled.

This is not the time to change the labor reform

Regarding the possible repeal of the central aspects of the labor reform, he believes that “it is not the opportune moment” to carry out reforms “of this magnitude” and that it would cause greater uncertainty and unrest in the country’s labor relations. “It would not add anything good to the current situation,” he said.

Despite this, he considers that the reform must be done “from seriousness.” According to Gabaldón, first you have to study everything “very well” and there, from his point of view, is where social graduates could play a “very important” role.

Gabaldón has highlighted that social graduates have been “the only bridge” between the administration, companies and workers. “Our job is, and so it has been in this crisis, to advise companies and freelancers. We have advised them and we have requested the benefits for them and even for their workers, something that we had not done until now with the ERTE. Without our participation, these workers, as well as the self-employed, would have been left unpaid, ”he added.

It has also stressed that it is not the time and that it is “more prudent” take measures that help alleviate the situation and, from collaboration and teamwork, to see how Spain can get out of the health, economic and social crisis and, later, “calmly tackle the precise and necessary reforms”.

Regarding how the use of remote work will evolve, Gabaldón has emphasized that, although the telecommuting It is going to be “very important” in the future, this “is not going to be as often and used by companies as it has been during the state of alarm.

“It can coexist, but it will depend on the activity of the company”, he stressed, after explaining that this type of work will be important in certain sectors and activities, while it will not be “for the moment” in others.