MARATHON TALKS between the Spanish government, trade unions and employers’ organisations to raise the retirement age have been taking place for the last six months.
They finally concluded early yesterday morning, with all sides making concessions and agreeing to raise the compulsory retirement age from 65 to 67. There will be exceptions for those who have made their social security contributions for 38½ years – the government had been holding out for a 40-year minimum.
Under the reform, pensions will be calculated on the last 25 years of a worker’s earnings and not the last 15 years as at present. The new measures will be introduced on a sliding scale beginning in 2013 and be fully operative by 2027.
The talks hung on a knife edge until the last minute and did not end until after 5am. With or without a pact, the measure was scheduled for discussion at yesterday’s cabinet meeting and to be debated and voted in both houses of parliament over the next few weeks.
The government threatened to pass the measure by decree if the unions had not backed down, and they, in turn, warned of staging a second general strike in six months.
Spain has a low birth rate and a rising life expectancy. It is estimated that there are now more than 8 million pensioners; this figure is rising rapidly, bringing ever-increasing pressure on the social security system.
Last year, for the first time, the system fell into deficit.
The retirement age agreement comes at a time when many millions of Spaniards would be only too happy to have a job to be able to make their social security contributions.
The unemployment figures for the fourth quarter of 2010 were issued yesterday, and they make depressing reading. Once again the numbers have risen, with 370,000 more unemployed people than in the same period the previous year.
There are now 4.7 million Spaniards (20.3 per cent) without work and an estimated 1.3 million families with no wage earner.
Not everyone approves of the deal though. Even as the talks continued, the first of what threatens to be a string of protests broke out on Thursday night. Several thousand demonstrators took to the streets of Madrid and clashed with police by throwing fire bombs – some containing nails – smashing windows and burning cash machines and rubbish containers.
The clashes became particularly violent when one group of demonstrators tried to break through a police cordon to reach the parliament building.
Eight riot policemen were taken to hospital for treatment and a dozen protesters were arrested. They are due to appear in court later today.