Cross-border workers’ treaty benefits offset concerns, Spanish union says

The UK/EU treaty on Gibraltar’s relationship with the bloc has removed the “Sword of Damocles” hanging over cross-border workers’ heads, according to Comisiones Obreras (CCOO), the Spanish union trade union. 

But the union is seeking clarification and support from Spanish authorities over unemployment benefits and pensions, and Manuel Triano, CCOO’s general secretary in the Campo, warned that cross-border workers could potentially lose purchasing power. 

Speaking to the Chronicle, Mr Triano stressed that the end of border controls was of huge benefit to employees on both sides of the frontier.  

“[The border] has been a Sword of Damocles for a long time, and cross-workers have paid dearly for it at different times in history,” he said. 

“No one will be able to use workers as weapons in bilateral relations between Spain and the United Kingdom anymore. That seems positive to us.” 

“As is the protection of equality of rights between Gibraltar residents and non-residents as well.” 

“We have a generally positive assessment of the treaty because we compare it with the possibility, a real possibility for some time, of conditions if it didn’t come about.” 

“A ‘no deal’ would have caused a major social and economic tragedy in this area, a disaster. Therefore, comparing the treaty with that scenario, it seems positive to us.” 

UNEMPLOYMENT 

However, issues have emerged since the treaty came into effect, mainly around unemployment and pension payments. 

CCOO and the Asociación de Trabajadores Españoles en Gibraltar (Ascteg), which represents Spanish cross-border workers, have sought clarification from the Spanish authorities on the arrangements. 

Mr Triano said the union, with information from Ascteg, had detected a change in the procedures after a group of cross-border workers who had been dismissed applied for unemployment benefits in Spain. 

Before the treaty, Spanish cross-border workers managed their unemployment benefit directly with the Spanish ministry of employment’s Servicio Público de Empleo Estatal (SEPE), using their end-of-contract documentation. 

The process is different now. 

“According to the treaty, according to SEPE, HM Government of Gibraltar now covers the first 13 weeks of unemployment benefits,” Mr Triano said. 

“Afterwards, the worker will continue receiving his/her payment from Spain for as long as it is appropriate, depending on the rights generated from his/her work.” 

Mr Triano said this could result in a loss of purchasing power because unemployment benefits in Gibraltar are lower than those in Spain. 

“Therefore, people receive less in those first 13 weeks,” he said. 

He said relatively few people had encountered the issue so far, although he did not have official figures. 

CCOO intends to seek a supplement from the Spanish government to address that shortfall. 

Mr Triano could not explain why the change in procedure had been agreed like this in the treaty. 

“We could only talk to civil servants, not politicians,” he said. 

“They told us that they are applying the law. This is why we have requested compensation from the Spanish Ministerio de Empleo.” 

“What we are asking for is a commitment from the Spanish government to workers’ rights.” 

“We know that it is difficult. It’s not a simple thing to show favour to different workforces, but we believe it is more than justified in this case.” 

PENSIONS 

The union is also awaiting clarification over pensions and the difference between pensions received by cross-border workers and minimum allowances recognised in Spain, the issue becoming increasingly important as more cross-border workers retire. 

“There was talk that a compensation mechanism would be put in place, but we still do not know anything about it. It worries us,” he said. 

“Unless you work for a large company or in the public sector, pensions in Gibraltar are very poor.” 

“So, we briefed about that during the treaty's negotiation period with the outcome of a compensation commitment from the Spanish government.” 

"The solution? Our Seguridad Social would take over and compensate up to the Spanish minimum. That was the commitment and we still do not have any data on that. It has to be put in black and white.”  

“This is important to us, one issue that the treaty really had to solve.” 

ECONOMIC WIN-WIN 

Beyond the treaty, CCOO supports the Campo’s chamber of commerce’s proposal to designate the area as a special economic zone as a means of securing a beneficial fiscal environment and attracting investment. 

However, those economic measures would need to be accompanied by improvements to infrastructure to address long-standing deficits, in Mr Triano’s opinion.  

These included improved electricity supply for industry, better passenger and freight rail services, public transport, and roads.  

“But, of course, bearing in mind our enterprising industrial sector, there are many economic sectors with great potential for growth and employment. Furthermore, the EU transition towards a policy of economic independence can help us in this area.” 

Mr Triano identified logistics, maritime import-export and energy as the sectors with potential for growth if infrastructure is improved. 

He also pointed out that cooperation with Gibraltar is relevant to the development of the Campo’s economy. 

“If we have a 100% framework for investments and Gibraltar has the capital, as it is already happening in the real estate sector, we can build a long-term stable win-win for both sides.”