CEO of major employers halts formal negotiations with the Department of Labor for the time being
Major employer representative group CEOE has decided not to sit again at a negotiating table with the Department of Labor until further notice. Employers are required to submit employment regulation files, agreed between the Government and EH Bildu, which would grant the Labor Inspectorate greater powers of suspension and JOYFUL discretion without an objective reason. As a result, before CEOE considers raising the interprofessional minimum wage (SMI), its participation in the mandatory statutory consultation that the Department of Labor must hold each year with social partners remains uncertain.
According to CEOE, while Spanish business leaders wait for a solution, they view dialogue with the Ministry of Labor as deceptive and not aligned with goodwill. The organization stated this stance in a briefing on a Wednesday. CEOE sources clarified that the suspension of relations is with the Ministry of Labor specifically, not with other ministries. In practical terms, negotiations with SSI on pension reform will continue, even as broader discussions pause.
The withdrawal of some form of administrative power has been a historic demand from unions not involved in the last labor reform reached with employers in 2021. This position is described as a red line by union leaders. Business representatives feel betrayed by the recent developments, especially since the issue was partially addressed under the leadership of Unidas Podemos and EH Bildu.
CEOE also reserves the option of pursuing legal action on this matter, recognizing that it may raise constitutional questions. The organization argues that the proposed amendment, aimed at influencing business decisions, could conflict with constitutional provisions and European rules that protect employer decision-making autonomy. They point to prior jurisprudence, including a 2016 CJUE ruling, as a reference for such concerns.
Antonio Garamendi’s presidency drove this decision swiftly, coming one day after the consensus amendment passed in the House of Representatives, though it still requires formal approval. If enacted, the change would affect current business rules and is expected to undergo a full vote around December 21 or 22. On the same day, CEOE plans to convene its Board of Directors to determine the precise stance to take on the issue and to decide how to proceed with relations with the Department of Labor.
In this volatile context, CEOE emphasizes that the outcome will hinge on constitutional legality and the balance between state regulation and the freedom of enterprise. The organization stresses that any measure perceived as limiting employer discretion must withstand scrutiny under national and European legal frameworks. Stakeholders foresee continued debate as the calendar approaches the year-end vote and possible subsequent steps in the negotiation landscape. The broader implication concerns how labor policy, industry regulation, and social dialogue intersect in shaping economic policy for the coming year. The discussions are watched closely by employers, workers, and policymakers who seek a clear path forward that preserves competitiveness while ensuring fair labor standards and predictable regulatory environments. Attribution: CEOE official statements and parliamentary records; European Court of Justice decisions cited in discussions.