The Generalitat Valenciana establishes subsidies of up to 9,000 euros per worker for companies that reduce working hours | Economy
The Official Gazette of the Generalitat Valenciana has published this Thursday the subsidies that will be granted to companies that reduce the working day without reducing the workers’ wages. This contribution will add up to 9,000 euros over three years for each worker whose working time is reduced by 20% or 32 hours per week. The initial budget of the plan is 1.5 million euros.
In order to receive the subsidy, the business commitment to reduce the ordinary working day must affect a minimum of the workforce. Thus, in the case of companies with up to 49 workers, 30% of the workforce must be compulsorily affected by the reduction in hours. This percentage will be reduced to 20% in the case of companies with 50 or more employees. In addition, the proposal will have to have a similar participation of men and women to the pre-existing gender distribution in the entire workforce with a maximum deviation of 10%.
The bases of this new aid establish that the companies that benefit must prepare a plan to reduce the working day and improve productivity, which must indicate the organizational or training measures that are planned to be implemented to optimize working time.
This must collect a series of indicators, including the evolution of work productivity in the company, which will be evaluated periodically. In the same way, the hourly reduction must count to receive the subsidy with an agreement with the legal representation of the employees, as reported by the Ministry in a statement.
The Ministry of Industry has a similar project. A couple of weeks ago, the process began for 150 companies to test their aid system linked to the fact that there is no salary reduction due to the reduction in working hours. There are companies like Telefónica or Desigual that offer reduced working hours, but in exchange for less salary. The department led by Reyes Maroto has put the project out for public consultation, for which 10 million euros have been approved, a demand from More Country to support the State Budget. Details are expected to be released before the end of the summer, according to industry sources. The initial proposal is that aid of between 2,000 and 3,000 euros per worker be given to companies, especially small and medium-sized ones, that adhere to the program.
The Valencian proposal was announced at the four-day International Summit of the Week held in Valencia at the end of May in which the Second Vice President of the Government and Minister of Labour, Yolanda Díaz, announced the launch of an algorithm to control the hours extras and pursue those that are not paid. At the meeting, organized by Labora, the Employment Service of the Generalitat directed by Enric Nomdedéu, the idea was put forward to deploy a pilot project for a four-day weekly working day or 32 hours for a month. Nomdedéu assured then that in Spain they work “100 hours more than the European average” and that, however, “we are one of the least productive countries. Therefore, the equation that more hours of work, greater productivity is not true”.
After the announcement, the preliminary draft was discussed with trade union organizations and with the most representative business organizations of the Valencian Community, who pointed out that since the measure is not mandatory, it falls within the scope of collective bargaining of each company, so they did not oppose to its implantation.
The aid will be deployed for a maximum of three years, which is the time that the program will last. The first full year of application will entail a subsidy of 5,492.19 euros for each worker incorporated into the plan to reduce working hours. The second full year the companies will receive 2,746.10 euros for each worker who keeps their working hours reduced and for the third year a contribution of 1,373.05 euros has been set. The maximum amount that the same company can receive has been set at 200,000 euros.
The Ministry of Economy states, in the preamble of the order, that the State has exclusive powers in matters of labor legislation, but the Statute of Autonomy of the Valencian Community establishes that the Generalitat, within the scope of its powers, must guarantee “the reconciliation of work and family life”, as well as to “have a working day that limits the maximum duration of working time and in conditions that allow daily and weekly rest periods”. In addition, the Cortes, in September, urged the Consell de la Generalitat to “continue promoting the application of the 32-hour weekly shift” within the framework of the study on the use of time to promote specific policies for the rationalization of hours.
The Ministry of Industry has a similar project. A couple of weeks ago, the process began for 150 companies to test their aid system linked to the fact that there is no salary reduction due to the reduction in working hours. There are companies like Telefónica or Desigual that offer reduced working hours, but in exchange for less salary. The department led by Reyes Maroto has put the project out for public consultation, for which 10 million euros have been approved, a demand from More Country to support the State Budget. Details are expected to be released before the end of the summer, according to industry sources. The initial proposal is that aid of between 2,000 and 3,000 euros per worker be given to companies, especially small and medium-sized ones, that adhere to the program.
