A black cloud overshadows collective bargaining in Spain

Abstract

REPORT□ COLLECTIVEBARGAINING INSPAIN A black cloud overshadows collective bargaining in Spain I adopted five 8/2010 The the for workers percent controversial public reduction 2010, Government Law-Decree Budget included amending the sector which in wage Royal Law the for a adopted the Royal Law-Decree 8/2010 amending the BudgetLaw for2010, which includeda controversial fivepercentwage reductionfor workersinthe publicsector CAMILO RUBIANO, Industrial and Employment Relations, Department (DIALOGUE), ILO. The views expressed herein arethose ofthe author and donot necessarily reflect the views ofthe International Labour Organisation. The gaining law-decree modification and may therefore affect ofa the collective the right right to to agreement collective freedom barby of law-decree may affect theright tocollective bargaining andtherefore theright tofreedom of association. Thiswas thedecisionreachedbythe Social Chamber ofthe Audiencia Nacional atthetime itrequested theConstitutional Court toexamine the issueina caselodged bytrade unions intheNational Mint Factory, oneofthevarious groups ofworkers thatchallengedthefivepercent wage reduction approved bytheGovernment on 20May2010. However, on7June 2011, ina decision that could haveaneffect onoverthree million workers inthe publicsector,1 theConstitutional Court rejected this reasoning andupheldthemeasure adoptedbythe Government. Background A briefchronology oftheeventsrefers that,in December2009,theSpanishCongress passedthe BudgetLaw for2010. Highlyinfluenced bythe globaleconomiccrisisthateruptedin 2008and that particularly hitSpainandother EU countries, itsmainobjective was thesustainability and stability ofpublic finances. Inthis context, theBudget Lawfor2010provided fora wage increase of0.3 percent forworkers in thepublicsector, in line with thepreviously negotiated Government-Trade UnionAgreement forthepublicsectorfor20102012 ,signedon 25 September 2009. Accordingly, collective agreements concluded in thevarious publicadministrations andstate enterprisesfortheyear2010werelinedup totheprovisions oftheBudget Law,andwith regard towages inparticular provided fora maximum increase of nomorethan 0.3percent. Buttheeffects ofthecrisis intensified and themeasuresadoptedin the BudgetLawweredeemedtobe insufficient. The downgrade oftheGreekdebtand thepossibility ofcontagion to otherEU economiesforcedthe Government toembark on theimplementation of newmeasures, seeking a further reduction inexpenditures . Thus, theGovernment availed from itsright toadopt temporary legislative measures under Article 86oftheConstitution andadoptedtheRoyalLawDecree8 /2010 amending theBudget Lawfor 2010, whichincluded - amongother measures - a controversial five percent wagereduction for workers inthepublicsector witheffect from 1June2010.2 As a consequence,a numberoftradeunions commencedlegal proceedings allegingthatthe unilateral andsubstantial modifications oftheagreement previously negotiated withtheGovernment violated theright tocollective bargaining andthereforetheright tofreedom ofassociation. The decision ofthe Social Chamber oftheAudiencia Nacional The proceeding before theSocialChamber ofthe Audiencia Nacional specifically concerned thecomplaints lodged bydifferent trade unions ofthe National Mint Factory. Basically, they allsought tooverturn thefive percent wagereduction, so that theworkerswouldreceive their wagesinfull, as previously agreeduponintheBudget Lawfor 2010.Theallegations werebasedonthefact that - for thepresent case - the legal prerequisites thatenable the Government toadopta law-decree werenotmet. Infact, theConstitution inessencestates that the Government mayhave recourseto law-decrees onlyincases of"extraordinary andurgent necessity ," andas longas they do notaffect theorganisationofthebasic institutions and the"rights, duties andfreedoms ofcitizens", including theright tofreedom ofassociation andtheright tocollectivebargaining . Theserestrictions arejustified due to thespecialnatureoflaw-decrees, whichare adoptedbytheGovernment andendorsed bythe Congress ina summary proceeding, wherethere isvirtually no debateandamendments cannot be introduced; theyare adopted(or rejected)in a packageas a whole. Moreover, Spanish legislation provides that only theConstitutional Court candeclaretheunconstitutionality ofa regulation having theforce oflaw. Thus, whena court considers that a regulation that hasimplications intheresult ofa proceeding may be contrary totheConstitution, itmust submit the issuetotheConstitutional Court. Indoingso,the SocialChamber oftheAudiencia Nacionalinitiallyconsidered thatthefirst requirement - "extraordinary andurgent necessity" - wasfulfilled, since theserious economic crisis enabled theGovernment inthis casetoimplement measures bylaw-decree. TheAudiencia Nacionalalso considered whether theLaw-Decree affected theright tocollective bargainingwhenitmodified an existing collective agreement, and as a result violatedtheconstitutional prohibition referred toabove.Thekeyissue was thescope oftheterm "affect". TheAudiencia Nacionalfirst recalled that notallregulations havingtheforce oflawaffect a fundamental right, but onlythoseconsisting ofa comprehensive regulationorhaving aninfluence ontheessential aspects ofa fundamental right. In thecase oftheright to collective bargaining therearefiveessential elements , namely: thenegotiation; thechoiceofbargaining level;theselection ofthebargaining content ; thebinding force; andtheadministration of the agreement.In thiscontext,the Audiencia Nacionalarguedthat whentheLaw-Decree modified theBudgetLawitalso prevented thecollectiveagreement attheNational Mint Factory from having a binding force, since"the binding force of INTERNATIONAL union rights Page 14Volume 18Issue 3201 1 REPORT□ COLLECTIVE BARGAINING INSPAIN thecollective agreement dependson theintangibility ofitscontent during itslifetime, andonlyby ensuring thisintangibility itis possibletoguaranteethefunctionality ofa collective agreement as a regulator oflabourrelations, corresponding to thelegislature toensurethat guarantee Inother words, themodification ofa collective agreement bylaw-decreeaffects a fundamental right, sinceitdrains collective bargaining ofitscontent , as itwas allegedbythetradeunions,thus contravening the limitations set forthin the Constitution for this typeofregulation. Therefore, a question ofunconstitutionality hadtobe placed before theConstitutional Court. Inaddition, theAudiencia Nacional heldthat had thecollective agreement been modified (or even suspended orsuppressed) bya law intheformal sense,thecircumstances wouldhavebeendifferent ,sincebytheprinciple ofhierarchy ofnorms thewagesofworkers inthepublicsector...