{"id":567,"date":"2020-03-19T16:30:13","date_gmt":"2020-03-19T15:30:13","guid":{"rendered":"http:\/\/webecpol.esade.edu\/?post_type=publicaciones&#038;p=567"},"modified":"2020-11-08T19:32:13","modified_gmt":"2020-11-08T18:32:13","slug":"labour-related-measures-pandemic","status":"publish","type":"publicaciones","link":"http:\/\/webecpol.esade.edu\/en\/publications\/labour-related-measures-pandemic\/","title":{"rendered":"Labour-related measures in response to the pandemic: protecting workers"},"content":{"rendered":"<h2>EsadeEcPol Insight #2<\/h2>\n<h4 class=\"t-title3\">Executive summary<\/h4>\n<ul>\n<li><strong>Given the significant segmentation in Spain\u2019s job market between stable and precarious workers<\/strong>, it is highly probable that those in the latter group (temporary, self-employed and part-time workers) will suffer greatly from the Covid-19 crisis.<\/li>\n<li><strong>The immediate objective of public policy has to be to ensure that these workers do not go unprotected<\/strong>, supporting their income and, insofar as possible, their continuity after the crisis subsides.<\/li>\n<li><strong>For this, we propose three extraordinary measures to protect their income.<\/strong>\u00a0All three serve to potentially complement those already adopted by the Spanish Government. These measures are straightforward and could be implemented overnight. We believe that,\u00a0in the current situation, this approach is beneficial\u00a0\u2013\u00a0complex measures or too many requirements would slow down their implementation. Given the nature of this crisis, we need to make sure that resources reach vulnerable workers as quickly as possible.\n<ul>\n<li><strong>Self-employed workers.\u00a0<\/strong>Postpone all self-employed workers\u2019 Social Security payment obligations while the state of emergency endures (the monthly cost would be 1,132 million euros).\u00a0In addition, self-employed workers whose income falls below a given threshold should be exempt from paying the minimum quota (estimated cost\u00a0would range from 94 to 187 million euros per month).<\/li>\n<li><strong>Temporary workers.<\/strong>\u00a0Should temporary workers\u2019 contracts not be renewed or if they are dismissed, we propose these workers receive the corresponding unemployment benefits, regardless of whether or not they have accumulated the necessary rights to those benefits (estimated cost\u00a0would range from\u00a0105 to 420 million euros per month).\u00a0When temporary workers are not fired but\u00a0demand has fallen, we consider scenarios where the State could cover up to 75% of the salary (estimated cost would range from 68 to 409 million euros per month).<\/li>\n<li><strong>Workers with indefinite contracts in companies whose demand has fallen.<\/strong>\u00a0We propose that the Government covers a percentage of their salaries in case of temporary labour force adjustment plans\u00a0in vulnerable industries\u00a0(estimated monthly cost between \u20ac540 and \u20ac2,500 million).<\/li>\n<\/ul>\n<\/li>\n<li>In summary, the monthly cost of implementing the measures ranges from \u20ac800 million in the most optimistic scenario (with the lowest levels of coverage), to<strong>\u00a0\u20ac3.5 billion in the most pessimistic scenario<\/strong>\u00a0(with the highest levels of coverage). The number of workers affected ranges from 1.7 million in the optimistic scenario, to almost 3.6 million in the pessimistic scenario.<\/li>\n<li>These measures will most likely need to be complemented with other actions if the economic situation worsens.\u00a0<strong>We believe it is essential to support those\u00a0workers<\/strong>\u00a0\u2013 whether they have been laid off or are self-employed and have seen their activity drop \u2013 that don&#8217;t have other income sources, or have to sustain their\u00a0family.<\/li>\n<li>Finally, we discuss\u00a0<strong>urgent measures needed to facilitate the flexible reallocation of labour<\/strong>\u00a0\u2013 from activities where demand is most affected (including hospitality, catering, tourism, transport, automotive, leisure\u00a0and retail) to others where demand is likely to increase (distribution, supply, online services such as education, online sales, food and beverages, health\u00a0and media). These measures will also greatly help the most affected workers, such as temporary staff and the self-employed, who will have the opportunity to find new jobs or new niches of activity.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The immediate objective of public policy has to be to ensure that workers do not go unprotected.<\/p>\n","protected":false},"featured_media":700,"template":"","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Labour-related measures in response to the pandemic: protecting workers - Center for Economic Policy - EsadeEcPol<\/title>\n<meta name=\"description\" content=\"Given the significant segmentation in Spain\u2019s job market between stable and precarious workers, it is highly probable that those in the latter group (temporary, self-employed and part-time workers) will suffer greatly from the Covid-19 crisis.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/webecpol.esade.edu\/en\/publications\/labour-related-measures-pandemic\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Labour-related measures in response to the pandemic: protecting workers - 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