Monday, January 23, 2012

WHY labor is what's killing Spain economy: the divide between insiders (with fix long-term contracts) and outsiders (with temporary contracts). I agree except with one thing: introducing a single open-ended contract only for new hires, as the post suggests, does resolve the problem albeit too slow -- the country wouldn't have a single labor contract, in practice for its whole workforce, until all current insiders are retired. This will take years, and the country can't afford it. Somehow it needs the new regulation affecting everyone, both new and old contracts, already. Yes, this will mean some sacrifice from current workers with a fix contract but, after all, isn't everyone saying that to solve the crisis it's necessary that the haves give something to the have-nots in the name of solidarity? Or is that only for the financial haves?