Spanish labour showdown looms

Mr Aznar's popular mandate allowed him to impose his will

By Flora Botsford in Madrid

Spain's trade unions are calling for a general strike in response to an emergency decree on employment law.

The government pushed through the decree on Friday after failing to reach agreement with the main unions and employers.

This is crunch-point for industrial relations in Spain

The decree includes a number of measures affecting contracts and dismissal which the government says are essential for job creation.

The move comes after eight months of painstaking negotiations with unions and employers, which broke down bitterly and without agreement on Thursday.

Taking advantage of its massive majority in parliament, the conservative government of Prime Minister Jose Maria Aznar has succeeded in imposing its will, issuing a special decree which will affect the lives of millions of Spanish workers.

The decree will make it cheaper to sack employees. Employers will have to pay 33 days redundancy per year worked.

It will make it easier for employers to issue part-time contracts and it will increase the number of fixed-term contracts.

Strikes common

This is crunch-point for industrial relations in Spain - after years of tranquillity, labour unrest is beginning to make itself felt.

Regular one-day strikes by public sector workers have at times brought the civil service to a standstill.

In construction, more than million workers joined a strike on Friday over the high rate of accidents and deaths on building sites.

In response to the government's latest initiative, the main unions have repeated their call for a general strike before the summer. If it happens, it will be the first since the late 1980s.

The Spanish Government argues that the measures are essential for job creation.

In the last few decades, Spain has created more jobs than any other country in Europe.

But the unions say quality of life is suffering and contracts are increasingly insecure and short-term.