Labor Rules Shake Up Footwear Industry: Clarity Sought for Permanent Hiring Thresholds

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“wonder” and the impulse to worry swirl around shoe companies as clarity from the Labor Inspectorate and Social Security remains elusive when assessing the rollout of discontinuous contracts. The ongoing fluctuation could push thousands of workers toward permanent status, ending the flexibility that helps factories adapt to seasonal fashion cycles. Which factories are affected as trends dictate seasonal shifts in footwear?

Since the Labor Reform was approved, employers have tightened criteria to sustain a seemingly constant workforce. Yet confusion has spilled into correspondence with companies, detailing varying percentages of annual working hours when they are asked to convert temporary staff into permanent employees. This inconsistency in criteria creates more disruption, leaving manufacturers unsure what to expect.

Both the national employers’ association FICE and the regional Avecal association have already requested a meeting with Labor Inspectorate leadership to clarify the situation and provide a practical guide for companies to follow. They want a clear framework that helps businesses plan ahead rather than guess at the rules.

“The issue is not the legislative change itself,” notes a spokesperson, “but how the Labor and Social Security Inspectorate applies the temporary parameters. There was criticism that the inspectorate questioned Avecal’s leadership over reviewing the recruitment of permanent staff who had served the company intermittently. The objection is that the regulator’s comments on the new rules threaten the viability of companies and show a misunderstanding of our industry.”

A shoe factory in Peterer. AXEL ALVAREZ

“We need the criteria to be implemented consistently,” argues the spokesperson. “If not, it will be very difficult for the sector to maintain its manufacturing and industrial activities in this country and to preserve the thousands of jobs already created.”

The first issue, according to Avecal, centers on the algorithms used by the Labor Inspectorate to calculate the working days of employees in inspected companies, which must reflect the cyclical nature of activity. There are also demands to convert contracts for workers who have logged a lower percentage of hours across the year without clear reasons, according to business leaders. The time periods studied vary, which affects the calculation of maximum working days and produces different results. It is important to remember that this industry experiences two peak seasons—summer and winter—when production surges and then slows, making consistent measurements essential for planning.

Puig seeks an alliance with employers and shoe unions to avoid the impact of the stagnant situation.

“There is a deep lack of understanding about how this industry operates. The rise in shoe production has strained ITSS, which creates an imbalance and inequality for our sector compared to others,” states the head of Avecal. The call is clear: more coordination is needed. There have been multiple instances where inspectors requested documents that had already been provided to a previous inspector weeks earlier. When possible, documents should flow between inspectors to prevent duplication and speed up the process, ensuring a smoother experience for companies.

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