Updates Labour 13-2012

Royal Decree 1362/2012, of September 27, 2012, regulating the National Consultative Commission on Collective Labor Agreements was published in the Official State Gazette on September 28, 2012 and has been in force since September 29, 2012.

This Royal Decree, which was made in compliance with the provisions of Law 3/2012, of July 6, 2012, on Urgent Measures for the Reform of the Labor Market, aims to regulate the composition, organization and functions of the National Consultative Commission on Collective Labor Agreements (which we will refer to by its Spanish acronym, the “CCNCC”).
Accordingly, it regulates the procedures shaping not only the CCNCC’s traditional consultative functions and role as a collective bargaining observatory, but also its decision-making functions in disputes that may arise in the context of a procedure to dis-apply the working conditions stipulated in the applicable collective labor agreement (“opting out” of collective labor agreement conditions). This function is undoubtedly important, since it will encourage and bolster the use at companies of internal flexibility mechanisms, thereby avoiding the need to resort to more drastic measures to implement employment adjustments, such as layoffs.

We describe below the most significant aspects of the new Royal Decree.

INDEX
1. NATURE, COMPOSITION AND FUNCTIONING
2. FUNCTIONS
2.1 Consultative functions
2.2 Collective bargaining Observatory
2.3 Decision-making functions relating to disputes over procedures to dis-apply working conditions established in collective labor agreements