In twenty years of experience in catering, never before this month of June Daniel Pardo had been hired for an indefinite period (CDI). «Most of the time they made me work and service contracts, often part-time, even when I worked twelve hours a day, partly paid on the black market, and interrupted during periods of inactivity. This explains why I only accumulate three years of full-time social security contributions, while I have always worked … “, explains this 37-year-old Spanish waiter. In June he signed his first permanent contract, a “discontinuous fixed contract” of forty hours a week, with two days of vacation and a “good salary”above the one marked by the collective agreement, in a bar in the seaside resort of Benidorm, the Gaztelutxo, in the Valencia region.

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Six months after the entry into force of the last labor reform in Spain, which drastically limited the possibility for companies to use fixed-term contracts, the number of permanent contracts continues to break records, month after month. In June, 780,000 DTAs were signed, never seen in the entire statistical series. In total, nearly 3.2 million permanent contracts and nearly 700,000 net jobs were created in the first half of the year. Unemployment dropped below 3 million in May for the first time since 2008. And while fixed-term contracts – fixed-term, seasonal, occasional or daily – up to then accounted for 90% of new contracts signed each month , they make up only about 55% of the total.

Tourism dependent labor market

“June was a month of overexposure to fixed-term contracts. It’s a phenomenon that collapsed this year. This is the most immediate effect of the labor reform “the Secretary of State for Employment, Joaquin Pérez Rey insisted on 4 July. “Solidarity and social justice are two keys to economic policy to respond to the crisis effectively, but also fairly”, underlined the head of the government, the socialist Pedro Sanchez. “In an uncertain context marked by the war in Ukraine and inflation, the labor market brings stability and strength”added, on Twitter, the Minister of Labor, of the radical left formation Unidas Podemos, Yolanda Diaz.

Faced with precarious work, perceived as inevitable, linked to a labor market very dependent on tourism (27% of precarious workers before the approval of the law, against the average 13.5% of the European Union), the left government has found a solution. Massively used in the construction sector, but also in the hotel sector, contracts for works and services have been eliminated, the end of which could therefore be signified at any time. Contracts for manufacturing circumstances have been made more expensive for companies. And fixed-term contracts were limited to six months, renewable for up to one year, to prevent abuse.

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