Spain labour reform may wait until June 11

The Spanish government hopes to wrap up a crucial labour reform package by June 11, a report on the website of El Mundo website said on Friday, citing government sources.

The government is in talks with unions and business leaders to get an agreement on a labour market overhaul to cut the cost of hiring and firing. It has said it will push the reform through parliament anyway if they fail to reach a deal.

The government had given unions and business an end-May deadline to reach an agreement, but said on Friday there was no exact date and they hoped to reach an accord in the next few days.

Unions have threatened a general strike if the government passes the measures without their approval.

A shake-up of Spain's labour market is seen as vital to restore the country's competitiveness.

Labour Ministry officials were not available for comment.