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LABOUR RIGHTS

EU rules Spain’s treatment of domestic workers is discriminatory

European Union judges on Thursday ruled that there is no valid reason for Spain not to offer domestic workers in the country the right to unemployment benefits as is the case for other contract employees. 

spain domestic workers rights
Many domestic workers in Spain are still not given work contracts by their employers. Photo: JOSEPH EID/AFP

The Court of Justice of the European Union on Thursday February 24th ruled that the Spanish system is discriminatory against its domestic workers, contrary to EU laws and indirectly sexist in that it particularly affects women.

“This exclusion entails a greater lack of social protection for domestic employees, which translates into a situation of social abandonment,” the high court statement published on Thursday reads.

Although the ruling is non-binding, it’s a win for domestic workers in Spain who for decades have been forgotten by authorities and usually forced to work in the underground economy.

The decision by the EU courts follows an appeal in 2019 by a domestic worker in Spain who wished to contribute taxes towards future unemployment benefits, only for the country’s Social Security agency to reject her request under the premise that Spanish law doesn’t allow it.

In 2011, Spain approved the current special regime for domestic workers, which recognised some labour rights such as access to sick leave but continued to deny other basic worker benefits such as unemployment payments.

Despite this, a third of the 536,100 domestics (mostly foreign women) who work in Spain are still not signed up to Spain’s social security system, according to the country’s 2021 Labour Force Survey. Two out of every three have earnings around the minimum wage bracket.

READ ALSO: What changed for families who have a domestic worker or cleaner in Spain in 2021

In February 2021, Spain’s Labour Ministry sent out around 45,000 letters to households with empleadas del hogar (domestic workers) warning them that they have to properly register their employees in Spain’s social security system and make the right contributions (cotizaciones), as well as ensuring they are paying them at least the minimum wage.

It’s not the first time the Court of Justice of the European Union calls out Spain’s labour laws as discriminatory as in 2012 they ruled that access to Spain’s more generous contributory pension system indirectly discriminated against women as there are a far higher number of women in part-time jobs in the country.

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Why Aragón is on its way to becoming Spain’s next Silicon Valley

Tech giants Amazon and Microsoft are both investing heavily in Spain's northeastern region of Aragón, turning it into a huge hub for data centres that will create thousands of new jobs. It's an unexpected but strategic choice.

Why Aragón is on its way to becoming Spain's next Silicon Valley

In recent years, Málaga had come to be known as ‘the Silicon Valley of Europe’ after Google and hundreds more tech companies established their European headquarters in the Costa del Sol city.

This has had a huge impact on the local economy and drawn in lots of foreign talent, with some unintended consequences in the process. 

However, another region of Spain is now being favoured by some of the global tech giants: Aragón, the region which houses the city of Zaragoza.

The northeastern region is set to become a hub for international data centres, large groups of networked computer servers which are essential for big companies that depend on digital data, as they’re used for remote storage, processing, or distribution of large amounts of data.

Amazon and Microsoft have both chosen Aragón as their data centre hub for southern Europe.

Last May, Amazon’s cloud computing division AWS announced it will invest €15.7 billion in data centres in Aragón through to 2033.

The investment will reportedly create around 17,500 indirect jobs in local companies and contribute €21.6 billion to Spain’s gross domestic product during the period, Amazon said in a statement.

“This new commitment by AWS spotlights our country’s attractiveness as a strategic tech hub in southern Europe,” Spanish Digital Transformation Minister José Luis Escrivá said in a statement.

This July, Microsoft confirmed as well that it would invest heavily in Aragón, specifically €2.2 billion in a huge data centre project.

“This is great news for the Aragonese economy,” said regional leader Jorge Azcón, highlighting the economic benefits expected from this investment which he believes will have “a knock-on effect” in attracting other companies.

Microsoft had already announced in October its intention to build a data centre campus in Aragón to provide “cloud services to European companies and public bodies” without saying how much investment that would entail. Now it looks like plans definitely go ahead.

Citing figures provided by the IDC consultancy, Microsoft said the project with its 88-hectare (217-acre) campus could “contribute to the creation of more than 2,100 technology jobs in Aragón between 2026 and 2030”.

So why Aragón, a Spanish region that aside from its capital Zaragoza is vastly underpopulated and undeveloped?

One reason is that data centres require locations with a robust electrical capacity, given that data farms consume a vast amount of energy.

In that respect, Aragón is an ideal location due to its ample sunshine and strong wind exposure that have given way to both solar and wind farms.

Other factors that have worked in Aragon’s favour include its robust links to Spain’s communications networks and the region’s geostrategic location, mid-way between Madrid and Barcelona, and with other major cities such as Bilbao and Valencia within relatively close reach.

Data centres also need land. In general, data farms require a high number of hectares. The surfaces range, for example, from the 147 hectares of AWS in the Polígono Empresarium in Zaragoza to 62 hectares near the Walqa Technology Park in Huesca and an additional 44 hectares in El Burgo de Ebro.

Being a vast region (47,719 km²) , Aragón has plenty of space available, coupled with the fact that its population density of 27.8 inhabitants per square metre means that there’s lot of room to build.

Seismic activity is also a decisive factor when tech companies choose locations for data centres, with a preference for  areas in which there is less or no incidence of earthquakes to guarantee its correct functioning. Around 88 percent of the Aragonese territory has a seismic acceleration below 0.040 g, that is, an intensity threshold, which is the lowest in the whole of Spain. 

READ ALSO: What are the pros and cons of life in Spain’s Zaragoza and Aragón?

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