26.4 C
New York
Monday, August 15, 2022

The Generalitat Valenciana sets grants of up to 9,000 euros per worker for companies that shorten the working day

- Advertisement -
- Advertisement -

The Official Gazette of the Generalitat Valenciana published this Thursday the subsidies granted to companies that shorten the working day without reducing workers’ wages. This contribution amounts to 9,000 euros over three years for each employee whose working hours are 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 company’s obligation to reduce normal working hours must affect a minimum of the workforce. In companies with up to 49 employees, 30% of the workforce must inevitably be affected by short-time work. This percentage is reduced to 20% for companies with 50 or more employees. In addition, the proposal must demonstrate a similar representation of males and females as the previously existing gender distribution across the workforce, with a maximum deviation of 10%.

The basis of this new aid is that the beneficiary companies must draw up a plan to reduce the working day and improve productivity, outlining the organizational or training measures planned to optimize working time.

This must collect a number of indicators, including the development of labor productivity in the company, which are regularly evaluated. Likewise, in the case of an agreement with the legal representatives of the employees, the reduction in hours must be credited to the subsidy, as the ministry announced in a statement.

The Ministry of Industry has a similar project. A few weeks ago, 150 companies started the process of testing their subsidy system, coupled with the fact that there are no pay cuts due to the reduction in working hours. There are companies like Telefónica or Desigual that offer short-time work, but with lower salaries. The department headed by Reyes Maroto has submitted the project to public consultation, for which 10 million euros have been approved, a request from More Country to support the state budget. According to industry sources, details will be released before the end of the summer. Initially, a subsidy of 2,000 to 3,000 euros per employee is proposed for companies, especially small and medium-sized companies, that join the program.

The Valencian proposal was announced at the end of May at the four-day international summit of the week in Valencia, where the second vice-president of the government and labor minister, Yolanda Díaz, announced the launch of an algorithm to control the hours of extras and keep track of those who are not paid. At the meeting, organized by Labora, the Labor Office of the Generalitat, headed by Enric Nomdedéu, the idea was put forward of piloting a four-day weekly working day, or 32 hours for a month. At the time, Nomdedéu assured that in Spain “they work 100 hours more than the European average” and that we are “one of the least productive countries. So the equation that more hours worked equals more productivity doesn’t hold true.”

After the announcement, the preliminary draft was discussed with trade union organizations and the most representative business associations 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 its implantation.

The aid is used for a maximum of three years, which is the duration of the program. In the first full year of application, a subsidy of 5,492.19 euros is granted for each employee included in the working time reduction plan. In the second full year, companies will receive EUR 2,746.10 for each employee who reduces their working hours, and for the third year a contribution of EUR 1,373.05 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 to the decree that the State has exclusive powers over labor legislation issues, but the Statute of Autonomy of the Valencian Community stipulates that the Generalitat, within the limits of its powers, “reconciles work and family life” and “a working day that limits the maximum length of working hours and under conditions that allow for daily and weekly rest periods”. In addition, in September, the Cortes asked the Consell de la Generalitat to “continue to promote the application of the 32-hour shift in the context of the study on the use of time” in order to promote specific strategies for the rationalization of working time.

The Ministry of Industry has a similar project. A few weeks ago, 150 companies started the process of testing their subsidy system, coupled with the fact that there are no pay cuts due to the reduction in working hours. There are companies like Telefónica or Desigual that offer short-time work, but with lower salaries. The department headed by Reyes Maroto has submitted the project to public consultation, for which 10 million euros have been approved, a request from More Country to support the state budget. According to industry sources, details will be released before the end of the summer. Initially, a subsidy of 2,000 to 3,000 euros per employee is proposed for companies, especially small and medium-sized companies, that join the program.


Source elpais.com

- Advertisement -

New Articles