The signing of the V Employment and Collective Bargaining Agreement (AENC) between CEOE, Cepyme and unions UGT and CC OO marks a renewal phase for wages in Alicante, with implications that will unfold through the first quarter of the year. Compared with the initial 4% raise proposed for this period, plus an additional 3% in 2023 and 2024 that could be adjusted by up to 1% for inflation, the actual data shows that the 59 contracts registered between January and March in the region reflect an average increase of 2.51%. This figure trails the national average of 3.06% for 2023, prompting expectations that the agreement will accelerate salary updates from this point forward.
While the AENC remains a voluntary framework rather than a mandatory rule, it serves as a negotiation base for pending contracts and as a guide to wage growth for thousands of workers in non-union enterprises. The late signing date does bring certain disruptions, though. Many workers covered by already-signed contracts may see increases this year that are below the recommended 4% threshold.
The total number of workers affected by contracts registered up to March in the province stands at 184,442. A portion of these employees will, even if not governed by the 4% target, experience salary improvements should inflation expectations move in their favor. National statistics show that about 26% of workers nationwide have a guaranteed increase via pre-agreed terms, which, if applied to Alicante by contract transfers, suggests that around 136,000 residents could see pre-arranged raises even if some contracts signed later in the year are adjusted. These figures do not yet account for agreements signed in April and May.
The situation is nuanced. The president of the autonomous employers association CEV, Salvador Navarro, believes deals should be respected and that new terms should not be demanded for already closed contracts. In contrast, the general secretaries of UGT in l’Alacantí-la Marina and CC OO, Yolanda Díaz and Francisco García respectively, see room for adjustment in sectors where economic recovery has notably improved corporate income statements. It is important to remember that AENC operates across a three-year horizon, meaning workers can benefit over the coming years.
How much do Alicante employees earn?
positive balance
What stands out is that the AENC, despite its uneven impact, brings a positive signal for social peace at a broad level. The agreement aims to increase wages to preserve purchasing power while maintaining company competitiveness, according to CEV’s view. Navarro emphasizes that this is a recommendation rather than a universal mandate, and that not every firm is in the same position to raise salaries immediately.
Unions remain clear that, along with the 4% baseline, an additional 3% should be implemented in 2023 and 2024. They argue that this will be a minimal concession only if inflation trends change, yet they stress that the agreement should be enacted promptly as a standard benchmark. Francisco García of CC OO also underlines the urgency and potential long-term benefits.
In practice, several sectors have already closed agreements with increments above the AENC’s recommendation. For example, the footwear trade sector has approved a 4.5% increase for 2023, while the wholesale food sector has set a 6.5% rise. These outcomes reflect sectoral strength and the ongoing negotiation dynamics that influence broader wage policy.
hospitality
Looking ahead, the hospitality sector poses a key test for AENC in Alicante, where more than 40,000 workers depend on sector agreements. The renewal table has been prepared, but economic proposals have yet to be shared, signaling possible divergence. Hosbec notes that the 4% guideline will serve as a directional reference while accounting for the sector’s strong performance last year, where salary increases ran higher than the average. A balanced approach will likely require a pragmatic averaging of different incentives and outcomes.
More than 77,000 people in Alicante stand to gain from higher minimum wages
Labor unions argue that the gains should extend beyond the 4% baseline, pointing to improved profitability in rooms and restaurant revenues in the past year. The sector’s recovery has surpassed the regional average, which suggests a continued push for favorable terms in ongoing negotiations. Whether a nationwide accord materializes or not, intense talks are expected to continue as a hallmark of the year.