The role of IR systems in creating

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Presentation transcript:

The role of IR systems in creating new forms of job and enterprise – The Spanish case Alejandro Godino Oscar Molina Final Conference December 11 (Roma)

INSTITUtional context in spain Different restructuring forms during the crisis: Closures and collective layoffs were the most frequent mechanism Internal reorganizations (including schedule reduction) Creation of new companies (less usual) Reactive approach To survive restructuring effects Lack of proactive mechanisms and initiatives supervised by regional and local authorities (anticipating intervention) Lack of industrial policies in Spain

restructuring PROCESSES EVOLUTION (es)

STUDIED cases Eligibility problem: Restructuring cases Active role of IR system Territorial scope: local level Resolution: creation of cooperatives

STUDIED cases Eligibility problem: Restructuring cases Active role of IR system Territorial scope: local level Resolution: creation of cooperatives

STUDIED cases Case Type of restructuring Sector Territory Impact 1 Internal restructuring Industry (Electronics) National -160 2 Partial closure Services (Finances) -590 3 Security Basque country Dismissal alternative 4 Industry (Chemical) Barcelona -102 5 Services (IT) -34 6 Services (Finance) -431 7 Closure Industry (Cigarette manufacturer) La Rioja -104 8 Logistics Fuenlabrada -423 9 Merge Madrid -170

STUDIED cases Case Type of restructuring Sector Territory Impact 1 Internal restructuring Industry (Electronics) National -160 2 Partial closure Services (Finances) -590 3 Security Basque country Dismissal alternative 4 Industry (Chemical) Barcelona -102 5 Services (IT) -34 6 Services (Finance) -431 7 Closure Industry (Cigarette manufacturer) La Rioja -104 8 Logistics Fuenlabrada -423 9 Merge Madrid -170

STUDIED cases Case Type of restructuring Sector Territory Impact 1 Internal restructuring Industry (Electronics) National -160 2 Partial closure Services (Finances) -590 3 Security Basque country Dismissal alternative 4 Industry (Chemical) Barcelona -102 5 Services (IT) -34 6 Services (Finance) -431 7 Closure Industry (Cigarette manufacturer) La Rioja -104 8 Logistics Fuenlabrada -423 9 Merge Madrid -170

STUDIED cases Case Type of restructuring Sector Territory Impact 1 Internal restructuring Industry (Electronics) National -160 2 Partial closure Services (Finances) -590 3 Security Basque country Dismissal alternative 4 Industry (Chemical) Barcelona -102 5 Services (IT) -34 6 Services (Finance) -431 7 Closure Industry (Cigarette manufacturer) La Rioja -104 8 Logistics Fuenlabrada -423 9 Merge Madrid -170

STUDIED cases Case Type of restructuring Sector Territory Impact 1 Internal restructuring Industry (Electronics) National -160 2 Partial closure Services (Finances) -590 3 Security Basque country Dismissal alternative 4 Industry (Chemical) Barcelona -102 5 Services (IT) -34 6 Services (Finance) -431 7 Closure Industry (Cigarette manufacturer) La Rioja -104 8 Logistics Fuenlabrada -423 9 Merge Madrid -170

STUDIED cases Case Type of restructuring Sector Territory Impact 1 Internal restructuring Industry (Electronics) National -160 2 Partial closure Services (Finances) -590 3 Security Basque country Dismissal alternative 4 Industry (Chemical) Barcelona -102 5 Services (IT) -34 6 Services (Finance) -431 7 Closure Industry (Cigarette manufacturer) La Rioja -104 8 Logistics Fuenlabrada -423 9 Merge Madrid -170

STUDIED cases Role of IR system: Consultation periods extension Reduction of planned dismissals Focus on early retirement plans Dismissal compensation above minimum legal Geographical mobility plans Interpelation to Justice system in conflict oriented negotiations

IN-DEPTh ANALYSIS: CHEMICAL COMPANY IN barcelona CAUSES Organizational and production causes rather than economics: New business strategy to increase benefits During restructuring process, benefits of 103.5€ millions (increase of 41.2% in relation to previous year) THE PROCESS Mutual trust and respect No public authorities intervention (media reputation) Majority of workers support (previous good practices)

IN-DEPTh ANALYSIS: CHEMICAL COMPANY IN barcelona THE AGREEMENT Dismissals reduction (121 102), 70% voluntary Better compensation than legal framework Improvements for vulnerable profiles Internal relocation between departments Social plan of relocation: Longer than minimum legal (18 months) Continuous training support Relocation in other companies Minimum standards of activity developed, salary and distance

CONCLUDING REMARKS AND POLICY POINTERS Important role of Industrial Realtion system in restructuring processes during the crisis Workers’ buyout and cooperative as last-resort mechanism in case of company closures Most representative trade unions remain ambivalent in relation to cooperatives Providing limited support for workers creating cooperatives