Owner of Bilbao's Gilda del Norte bar fined for hiring undocumented workers
The owner of the Gilda del Norte bar in Bilbao has been fined 18,000 euros for hiring undocumented workers. Is that enough to curb labour exploitation?
English · Original discussion in Spanish · Published
Derisory 18,000-euro fine for the owner of Gilda del Norte for hiring undocumented workers
The fine imposed on the owner of the popular Bilbao bar "Gilda del Norte" for hiring workers in an irregular situation has peine the debate over whether fines are an effective tool against labour exploitation. The amount, 18,000 euros, has been described as "ridiculous" by some quarters, who argue that the penalty is far below the savings gained from paying workers off the books and dodging social security contributions.
A sanction that does not deter
Those who have analysed the case argue that the profit the business owner made while employing undocumented workers far exceeds the fine. Although Spain's Labour Inspectorate does act, it runs up against penalties that in many cases are simply absorbed as another business expense. The ruling, which is not final and can be appealed before the Superior Court of Justice of the Basque Country, leaves open whether any heavier sanction will ultimately be applied.
The other side: the consumer's role
Alongside the criticism of the amount, a current of opinion points to the customer's responsibility. "Don't frequent venues that hire foreigners in these conditions" is the call to boycott establishments that profit from irregularity. The idea is that as long as there is demand for cheap services built on exploited labour, fines will be seen as a minor expense.
The question that remains is whether the sanctioning system is designed to punish or to raise revenue. The Gilda del Norte case suggests that, at least on this occasion, the business of exploitation remains profitable.
Related discussions on the forum
The fine imposed on the owner of the popular Bilbao bar "Gilda del Norte" for hiring workers in an irregular situation has peine the debate over whether fines are an effective tool against labour exploitation. The amount, 18,000 euros, has been described as "ridiculous" by some quarters, who argue that the penalty is far below the savings gained from paying workers off the books and dodging social security contributions.
A sanction that does not deter
Those who have analysed the case argue that the profit the business owner made while employing undocumented workers far exceeds the fine. Although Spain's Labour Inspectorate does act, it runs up against penalties that in many cases are simply absorbed as another business expense. The ruling, which is not final and can be appealed before the Superior Court of Justice of the Basque Country, leaves open whether any heavier sanction will ultimately be applied.
The other side: the consumer's role
Alongside the criticism of the amount, a current of opinion points to the customer's responsibility. "Don't frequent venues that hire foreigners in these conditions" is the call to boycott establishments that profit from irregularity. The idea is that as long as there is demand for cheap services built on exploited labour, fines will be seen as a minor expense.
The question that remains is whether the sanctioning system is designed to punish or to raise revenue. The Gilda del Norte case suggests that, at least on this occasion, the business of exploitation remains profitable.
Related discussions on the forum
Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (6 replies).
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