Economic Debate on Working Hours and Industrial Competitiveness

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The evaluation of data by autonomous employers group CEV highlighted strong participation in the Active Population Survey, which was described as positive. There was notable opposition from major business associations across the country to reducing the standard workweek to 37.5 hours, a proposal included in the investment agreement between the political parties PSOE and Sumar.

Salvador Navarro, who chairs the organization, aimed to spotlight concerns about job quality and the potential impact on the economy. He noted that given the current economic slowdown and the effects such a measure could have on productive activity, it seems appropriate to allow the number of hours to be determined through employment contracts or company level agreements. In other words, flexibility should be built into how work schedules are set to suit different industries and activities.

Employers warned that shortening hours could adversely affect productivity and competitiveness. They argued that a move of this kind could increase costs and disrupt operations across various sectors of the private economy. The position was echoed by political figures who labeled the proposal as populist and irresponsible. They stressed that announcing a change of this magnitude without consulting social partners risks undermining the basis for constructive dialogue and social consensus.

Within the sector, a consensus emerged with some groups echoing criticisms already voiced by major business federations. For instance, the Federation of the Spanish Footwear Industry, led by Rosana Peran in Elche, warned that reducing working hours would be particularly challenging for footwear producers. They cautioned that such a change would threaten employment and reduce the sector’s ability to compete internationally. The concern centers on the added strain from rising input costs, including raw materials shortages, energy and transport price increases, and higher financing costs that could erode margins.

In this context, the autonomous federation aligned with those who oppose the measure and stressed that it would complicate the already fragile competitiveness of many companies. The sector is battling ongoing material shortages and volatile energy costs, and any policy that tightens labor cost structures could worsen the situation.

Francisco García and Yolanda Díaz, in their roles as union leaders, were pictured at a May Day event. The scene underscored the broader dispute between unions and business groups over labor reforms and working hours. The image was a reminder that the debate touches multiple facets of the labor market, from wage policy to employment protections, and from productivity to social dialogue.

Some unions maintain a contrasting perspective. They argue that improving working conditions and reducing working time are essential goals and should be pursued through careful experimentation and flexible arrangements. The general secretary of the union alliance CC OO has repeatedly urged that labor reforms should focus on sustaining employment while offering better hours for workers. Critics note that past doomsday predictions around job losses did not materialize; instead, employment reached record levels, even as debates around the minimum wage and reform persisted.

The discussion also touches on broader economic policy. When considering the potential impact of a shorter workweek, the debate expands to how temporary contracts, permanent positions, and overall labor demand might shift. The possibility of preserving job creation while improving working conditions remains a central question for policymakers, unions, and business associations alike. The tension between reducing hours and maintaining productivity continues to shape the narrative around labor reform in the region.

In a related analysis, the organization Ineca released findings claiming that reducing working hours could influence the competitive standing of exports from Alicante. The assessment suggests that the region’s export performance could be affected if working time changes are not balanced with productivity gains and competitive costs.

Similarly, leaders from UGT in the Alicante area and other regional voices view the upcoming legislative period as a pivotal opportunity to advance labor policies. They advocate continuing momentum on measures that have already begun to reduce temporary employment and promote permanent contracts, with the aim of creating a more stable and fair labor market for workers in the region.

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