Mariano Rajoy said to Rubalcaba, "Both the employer organizations and labor unions are going to lose a lot of opportunities or power. But we have to govern for the people, for the workers."
Effectively, the general principle of suppressing conversations about PP labor reforms among social agents will diminish those social agents' roles and, at least for the labor unions, lead to cuts in ERE (Expedientes de Regulación de Empleo) funding and training resources.
ERE procedures will be most negatively affected by labor union influence. The norm that was approved last Friday by the Cabinet eliminates prior administrative approval. And even though the ERE will still have to communicate with Public Employment Services, final decisions will remain with the employer.
If an agreement cannot be reached between parties, then mediation will be necessary, which will neutralize central labor unions' power and ability to act. But this issue entails not just a question of power, but also a question of a significant amount of funds.
Because even though it will be nearly impossible to calculate an exact or even approximate figure for how much funding the labor unions get from the ERE, all experts consulted on the matter estimate that they receive more than 100 million euros annually at a minimum in legal council alone.
