The inflation figures in Spain have been unclear for over three decades, complicating collective bargaining and widening gaps between employers and unions. With disagreements over how salary scales should be split, the impact of the rising CPI on contract renewals has become a major point of contention, threatening to escalate business tensions across sectors.
In the Alicante region, roughly 16,500 workers are affected, with particular activity in Elche, Elda, and Villena. Local unions, including UGT and CC OO, organized gatherings this Thursday to protest what they perceive as an employer blockade on state-level negotiations. In Alicante, demonstrations were planned in front of the regional employers’ association headquarters in Elche, as part of broad efforts to resume talks.
Despite attempts at rapprochement, negotiators have not sat at the table since last June, an impasse for which both sides bear responsibility. The likely paths ahead show few surprises. Union negotiators are asking for a 4.3% wage increase for this year, 2.5% for 2023, and a further 2% for 2024. The employers’ side proposes extending the current contract through 2025 with wage increases tied to inflation, including a 4% uplift from July 1, 2022 or 2.5% if applied from the start of the year, plus 3% for 2023 and 2.5% for 2024, and an additional 2% later. The core dispute centers on whether to link raises to the real CPI and for how long such adjustments should be staged.
There is a broader reflection on inflation’s role. Both sides acknowledge that price pressures are real and persistent, but they differ on how to translate inflation into wage adjustments. Union leaders push for a salary review clause that aligns the final increase with the actual CPI over the period, while business representatives advocate limiting the upside to a two-point maximum increase. The debate continues to hinge on balancing workers’ purchasing power with the industry’s competitive pressures.
As Ismail Sente, general secretary of the union in the Muntanya-Vinalopó-Vega Baja region, notes, workers cannot be asked to bear the burden of inflation alone, especially in an industry where many wages run low. From the unions’ perspective, the attitude of some employers is seen as an attempt to stall collective bargaining and freeze wages, prolonging a squeeze on workers’ incomes while costs rise.
On the employers’ side, the stance is that any wage increases must reflect the sector’s economic reality and help stabilize the industry amid inflationary pressures. Marian Cano, president of the regional association, has argued that the proposed offer is fair, rational, and aimed at softening the impact of price rises while preserving employment and industry viability. He emphasizes that the offer is designed to mitigate the cost surge driven by inflation and to protect purchasing power for workers in the sector.
Both sides reiterate a willingness to continue negotiations. The union leaders emphasize that the door remains open and that talks should proceed with the goal of benefiting all workers in the footwear sector while enabling the industry to weather the current economic storm. They warn that if a deal is not reached, the pressure could intensify, leading to stronger mobilizations in the near term.
Without a negotiated settlement, more than 16,500 workers tied to the sector in the province and over 54,000 workers nationwide could see wages effectively frozen pending agreement. Some companies have already implemented modest wage adjustments since January, but a binding deal would determine whether those increases become permanent across the sector or are rolled back in some cases.
In the broader context, the bargaining process continues to be watched closely by observers who see this as a key test of how Spain handles inflation-driven wage debates within a crucial manufacturing sector. The ongoing discussions reflect the delicate balance between safeguarding workers’ purchasing power and maintaining the competitiveness required to sustain employment and growth in the regional economy.
Marian Cano, president of Avecal, stresses that the proposed terms represent a practical response to current inflation, aiming to preserve purchasing power without compromising the sector’s long-term viability. He reiterates that the association remains committed to constructive negotiations and hopes that unions will engage in good-faith talks toward a mutually beneficial agreement.