Spaniards protest government labor reforms across country

Hundreds of thousands of people across Spain have taken to the streets to protest against the government’s labor reforms as part of the newly-approved austerity measures.

People in 60 cities across the Spain took part in the Sunday demonstration, called by the country’s main trade unions.

The labor reforms, passed by decree last month and confirmed in Parliament on Thursday, make it easier for employers to cut pay and lay off workers.

The rallies are the unions’ first trial of strength before a general strike called for March 29 to oppose austerity measures. Spain’s conservative government says that the reforms are needed to revive the economy and reduce the unemployment rate.

Spain’s unemployment rate hit a 17-year high of 22.85 percent at the end of 2011, giving the country the highest rate among the 27 EU member states.

Reforms approved by Prime Minister Mariano Rajoy’s government on February 11, allows Spanish companies to pull out of collective bargaining agreements and have greater flexibility to adjust employee schedules, workplace tasks and wages, as well as making it easier and less costly to fire workers.

Battered by the global financial downturn, the Spanish economy collapsed into recession in the second half of 2008, destroying millions of jobs. Analysts say Spain’s economy is expected to enter into a new recession in the first two quarters of 2012.

Europe plunged into deep financial crisis in 2008, which has continued to intensify in recent months.