Monday, December 17, 2012

Workers in Spain don't get paid but are afraid to quit

Suzanne Daley has a disturbing front page story in the New York Times Monday, December 17, 2012, “For Spaniards, Having a Job Mo Longer Guarantees a Paycheck”, link here

Bankrupt employers are failing to pay workers, who are afraid to leave, and the government has trouble processing “not paid” claims.  Part of the issue is that employers say they have not been paid by customers, so it is a chain-reaction, depression.

Earlier, Daley had written an article (in July) that Spaniards were relying on family more than on government benefits.

The article can make US readers wonder if this can happen to them, or if it could even happen with Social Security payments to some recipients in case of a debt ceiling default in early 2013. 

To hear a story like this from Spain is shocking to me.  I visited the Basque portion of the country in the spring of 2001.

Part of the fiscal problem comes from a low birth rate supporting an aging population.
Wikipedia attribution link for panorama of Bilbao from bus approach (nearest train is 50 miles to the east in San Sebastian.

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