Spain's largest union expects labour accords in May

MADRID
SPAIN'S largest union will likely sign an agreement with employers about labour reforms in the first half of May, the head of labour union CCOO told Reuters.

The agreement will focus on a reduction in working hours, an overhaul of hiring incentives and measures to incorporate youth workers and the long-term unemployed into the workforce, Ignacio Fernandez Toxo said. “In the first half of May there should be an agreement as some of this is late,” said Toxo, who hopes such a deal can reduce Spain's unemployment rate, which at nearly 20 percent is the highest in Europe. “We have more than 4 million people unemployed in Spain and at least some of them could have been spared if some measures such as a reduction of the working day had been introduced earlier,” he said.

Economists have seen labour reforms as a key element in boosting Spain's economy out of its worst recession in half a century.
The country could become the only leading European economy that fails to return to growth this year as it struggles to recover from the bursting of a housing bubble.

An initial agreement between unions and employers is seen as a first step for the introduction of labour reforms by the government. It says a consensus on any reforms is needed between unions and business groups. “The government was pushing for an agreement to come by the end of April, but this is evidently not going to happen,” Toxo said.
A reform package aimed at restructuring the jobs market was due to be presented by the government at the end of the month.