The Minister of Inclusion and Social Security,
Jose Luis Escrivá, admitted this Thursday that Spain has very high levels of precariousness compared to other European countries. To stop this scourge, the head of Social Security insisted that his ministry will approve measures to penalize the misuse of short-term contracts and discourage high contract turnover. At the same time, the minister took the opportunity to blaming employers in part for the duality of the Spanish labor market: “We are going to create disincentives for this enormous turnover, which sometimes has a spurious element for not contributing for a weekend or a few days to Social Security and this cannot be,” said Escrivá in an interview on the program ‘Espejo Público ‘of Antenna 3.
Already in May the minister advanced his plans to toughen the penalty in the price of short-term contracts in an attempt to fight against the so-called express contracts. Escrivá then specified that a penalty “increasing with the number of drop-outs in a certain period of time” will be implemented. Now, the minister announces that its launch will be imminent given the “shocking” numbers in the labor market and recalled that Social Security gives 27 million casualties every year, one in five for one-day contracts and three out of five for contracts of less than one month.
On the other hand, Escrivá announced that June will be a “Extraordinary” month for employment with the incorporation of more than 150,000 new affiliates and that ERTE workers have dropped to 470,000. The minister insisted that the start of June is being “very strong” for employment with an improvement in the rate of exit from the ERTE. “There is a broad spectrum recovery,” he stressed.
In reference to the study by the Bank of Spain on the effects on job destruction due to the increase in the interprofessional minimum wage (SMI) of 2019, Escrivá claimed to differentiate between the working documents prepared by the technicians of the governor’s statements or of the Institution reports.
We know, not from this study, but from many studies, that the extraordinarily high rise in the SMI, above 20%, has small effects on employment, ”said Escrivá. The minister also added that the fundamental thing about the SMI is that it is a “very powerful” income redistribution mechanism.