Politicians and labor unions have won negative sentiment for the same reasons. Many workers know that the unions, which are supposed to defend workers' rights, are looking out for their own interests instead. The labor unions are doing business legally by giving legal and technical advice about ERE, known fully as Spain Redundancy Procedure, an administrative procedure particular to Spain that requires employers to file temporary work suspensions or collective dismissals in certain ways.
Through this method, mainly The Workers' Commissions and The General Union of Workers (CCOO and UGT are the abbreviations in Spanish, respectively) are the most established unions. Together they earned around 90 million euros in 2011. They charge workers 250 euros on average. The problem is growing because many laid-off workers are ignoring it and labor unions control the service without giving the worker a chance to make an enrollment choice.
A lack of transparency feeds corruption. Andalucía's ERE case is a model of how unemployment benefits and ERE payments can be used to serve individual interests. The courts will determine who was responsible in this corruption case, but it is clear that the structure and operations within government administrations, labor unions and companies create an environment that favors fraud.
Corporations are benefiting from the fraud, too. They pay commissions to well-connected intermediaries so that company committees sign off on their proposals and problems with administrations are kept at bay. The labor unions should nix these unethical practices, and companies should not permit them either. The antidote is to give transparent and public access to corporate and labor union balance sheets.
