The 'Austrian backpack' like PSOE, PP and Citizens

The 'Austrian backpack' like PSOE, PP and Citizens

Experts appreciate the pros and cons of launching a capitalization fund for workers

  It is not a new debate, but rather the resurrection of a proposal that has been recurrent in recent years. The first to try to implant the 'Austrian backpack' was the government of José Luis Rodríguez Zapatero at the beginning of this decade, an idea that Ciudadanos has always included in its electoral program and in the investiture negotiations. Then it was the ex-Employment Minister Fátima Báñez who revived the debate again and now the already almost functioning socialist government has incorporated it into her change agenda, approved only a week ago.

    Although this legislature is logically not going to see the light, it is evident that a parliamentary majority could be achieved around creating a capitalization fund for workers, which would be maintained throughout their working life and that could be effective in the assumptions of dismissal, geographical mobilization and development of training activities or at the time of retirement, something that Austria implemented in 2003.

   The Government of that country, after a long and arduous negotiation, eliminated the severance payment but, in return, the employer was forced to contribute to its workers 1.5% of their gross salary to a box of labor forecast or fund that the employees take with them regardless of the changes of company they make. If it has not been used before, it complements the pension.

The questions that arise are many: can this model be extrapolated to Spain, a country with many more inhabitants than Austria and an infinitely higher unemployment rate? How would it be done and who would finance it? When could it be used? Different experts value this proposal.

President of ATA
Lorenzo Love
"Whatever the worker goes with a contribution so that employers do not have high costs, welcome. I have known many freelancers who have had to close because they have not been able to face the compensation. I think that this model, in fact, can also work here. I just hope it does not involve an excessively high price. "

Secretary of Social Protection and Public Policies of CC OO
Carlos Bravo
"It is an idea that is posed recurrently and with a definition, often questionable. The fact that the companies anticipate the endowment of a part of the cost of a possible dismissal without affecting the cost of the same and that, if not consumed, this money can generate a complementary benefit, that is, of the worker, it is an idea to to consider. If what is proposed is to eliminate or reduce the compensation, that is, the cost of dismissal and its use is foreseen for different purposes, at the exclusive discretion of the employer, we speak of a mere subterfuge that we do not share ».

Sources of the CEOE employer
"The proposal is not new. At the time there was a commission of experts that came to an obvious conclusion: how can this initiative be economically sustained? If it is established from scratch, it would suppose a very high cost. If the Government is referring to replacing this fund with unemployment benefit or severance pay, we are looking at very different aspects of whether the approach is to create a new income. In CEOE we believe that everything that generates higher expenses for companies goes against the creation of employment, which is what this country really needs ».

In Austria, the employer contributes 1.5% of the worker's salary, but there is no compensation for dismissal

Professor of IESE
Sandalio Gómez
"There are two reasons to talk about this issue: the viability of the pension system is increasingly compromised and the backpack can serve as a complement to the pension at the time of retirement. The main problem to solve is how the backpack is financed. It is a key issue that must be addressed in a negotiation between the Government and social forces. In Austria, the employer assumed the financing of the backpack, which is owned by the worker, in exchange for eliminating the compensation for objective dismissal. In our case it could be the decrease in the cost for objective dismissal. To reach an agreement in this sense would serve to end the duality of the labor market and alleviate the problem of the pension system, by having the capital accumulated in the backpack throughout his professional life,

Esade teacher
Eugenia Navarro
"It's fantastic, because the backpack in the background helps to make the labor market more flexible, which in Spain is sometimes very expensive for employers, both the hiring expenses and dismissal. And at the same time it encourages workers to be more efficient. But I think we have a long cultural journey to get here. Spain is not ready yet. Politicians do not dare to adopt antisocial measures, although they have all the business sense, of management optimization. What would be paid? It has to be compensated: the majority paid by the company and part by the worker. A mixed formula would be interesting. "

President of Asempleo
Andreu Cruañas
"The backpack would need an allocation of between 7,000 and 8,000 million for its initial start. It is necessary to see if it can be used for training, for relocation of the worker or if it is being seen as a reinforcement of the pension system. And the key is its financing. Will it be the responsibility of the worker, the company or the public treasury? It could be used to pay the money of the bonuses of the contracts and the lower expenditure on benefits. In any case, the Austrian backpack will cost to materialize because, in any case, it would mean an increase in social contributions and an extra cost to the employer, since it is unthinkable that the worker assumes it ».