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"We will request the repeal of the Labor Reforms of 2010 and 2012, due to its harmful consequences for the quality of employment, that pensions can not be below the SMI and that the free provision of the Pension Reserve Fund "
The 2010 Labor Reforms of the Socialist Government that reduced and facilitated the dismissal, and the still more ominous Reform of the Government of Rajoy in 2012 that resulted in high levels of unemployment, massive labor precariousness, wages of misery and abusive recruitment, contributed Decisively to the Social Security deficit.
The contributions do not cover expenses and the Government has systematically used to empty the so-called Pension Reserve Fund.
The decline in income from contributions is a logical consequence of the decline in contributions due to high unemployment rates and the low quality of jobs created.
It is obvious that this low quality of employment with wages that in some cases do not reach the minimum wage, produces low prices.
Another factor that contributes decisively to this negative trend is the high rate of temporality linked mainly to the services sector and other sectors such as agriculture that do not escape this type of hiring.
In 2011, the Social Security deficit for contributions amounted to 16,707 million euros and the Pension Reserve Fund has fallen from 66,815 million in 2011 to 15,915 million in 2016. This clearly jeopardizes the quality and the future Of these benefits.
A strategy that connects with the neoliberal vision of pensions as benefits that must be ensured by the workers going to private entities (banks and insurance companies) who see in it a gigantic business of the future.
Only by creating stable and quality employment, and abandoning the belief that the development and the exit from the crisis must be based on wages of misery, will it be possible to redirect this dangerous trend that jeopardizes the present and the future of the Pensions.
It has been demonstrated in recent years that economic recovery is not possible with an impoverished and low-wage social majority that does not consume and directly produces more unemployment and closure of companies in a dramatic loop.
Something that begins to recognize even the ECB.
Among other proposals, we urge the Government of the Nation to prohibit by law the free disposal of the Pension Reserve Fund for situations of contribution deficits and to seek ways of direct financing from the General State Budgets as long as this deficit continues to occur .
Source: Ganar Totana-IU
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