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Spain's employer's organization suggests changing full-time contract to part-time unilaterally
Last Updated: 2013-08-09 08:00 | Xinhua
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The Spanish Confederation of Business Organizations (CEOE) proposed that employers can change from full-time contract to part-time contract unilaterally.

This news came 24 hours after the CEOE and Spanish unions rejected the International Monetary Fund (IMF) and European Commissioner for Economic and Monetary Affairs Olli Rehn's proposal of cutting wages in Spain.

The IMF said that Spain's unions and firms should agree on lower wages in exchange of creating employment, a proposal supported by Rehn.

The IMF explained wages could be reduced by 10 percent in two years and contributions to social security by 1.7 percent.

The CEOE made this proposal in a document Thursday called "The reforms needed to overcome the crisis" in which the organization defends that employers should have the right to change from full- time contract to part-time contract for some reasons, which could be of economic, organization, production or technical matters.

Changing contracts could avoid dismissals, according to the CEOE, which also proposed that workers can work more complementary hours, increasing from the current 15 percent of their working day to 30 percent. It also suggests increasing age ranges for training contracts, currently between 25 and 30 years old.

One of the main Spanish unions, Union General de Trabajadores ( UGT), argued that this proposal would lead to job precariousness, while pointing out that part-time contracts are growing in the country and have a negative impact on workers' purchasing power, unemployment benefits and pensions.

Spain's unemployment rate is very high; more than 4 million people in the country are out of work despite the fact that unemployment decreased by 64,866 people in July thanks to the tourist season.

The country's temporary job agencies reported on Thursday employment will "slightly" increase in the third quarter of 2013 via temporary and part-time contracts, however it is expected to decrease again when tourist season ends.

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