The Spanish government will propose labor reform on June 16th. The reforms will lower severance pay for permanent workers, discourage the use of temporary contracts, and make it easier for companies to layoff or reduce hours. Spanish officials are trying to push reforms through quickly, in hopes of staving off a debt crisis like the Greeks. Talks between the government, union leaders and businesses have been ongoing for a year, and they will meet gain next week to discuss the details of the proposal. Labor leaders have said that they will call for a general strike if they are not happy with the reform package.
See "Spain job reform aims to end two-tier system-radio", Tracy Rucinski, Reuters, June 2, 2010