The unions CCOO and UGT are signaling a new phase of pressure on social stability in Spain, contrasting with calmer patterns seen in parts of Europe. As May Day approaches, the unions representing the majority are urging employers to agree on a salary framework in the coming weeks. If negotiations falter, they indicate that further strikes and demonstrations could intensify, aiming to secure meaningful wage growth in the years ahead. In 2023, negotiations were anticipated to involve around a thousand collective agreements, following 2022, which saw the sharpest erosion of purchasing power since 1985.
At a press conference held on the eve of May Day, the UGT secretary general urged policymakers to feel the pulse of the streets and to curb what he described as greed and usury seen in some corporate practices. The rallying cry under the banner Increase wages, lower prices, distribute profits set the tone for 73 demonstrations across major cities on the upcoming Monday, May 1.
Inflation is depicted by some observers as a constant pressure that erodes household budgets and undermines financial security for ordinary families. A society that filled hotels during Easter is viewed by critics as showing signs of volatility that could manifest in unforeseen social strains tomorrow. Critics note that this inflationary backdrop echoes questions about pensions and social protection, drawing comparisons with pension policy debates in other European countries.
The central aim is to shield and raise purchasing power, with private sector wages seen as a core unresolved challenge for the broad alliance of unions. In 2022, the contractually agreed wage increase stood at 2.8 percent, a figure well below the 8.4 percent average inflation recorded for the year. Plans to reopen the wage talks were pursued but, so far, have not yielded an agreement.
The unions intend to leverage the May Day anniversary as a tool to push the CEOE back to the negotiating table. Without a restart of discussions, there is consideration of turning each new negotiation into an arena of conflict. This was the message conveyed on the eve of May Day last year, prior to a significant escalation in tensions. Catalonia registered a historically low unemployment rate in 2022, a point cited by supporters of the unions to underscore the complexity of the labor market landscape in different regions.
When asked about the possibility that escalating conflict could pose broader problems for the Spanish labor market, the two top leaders of CCOO and UGT did not provide a definitive stance about a generalized strike scenario. The conversation underscored a tension between the impulse to confront employers and the need to safeguard social peace, with national mechanisms and regional realities both in play.
Good luck in dialogue with the government
The unions celebrated their previous success in some negotiations with the government, while also provoking some discontent among employers. The energy sector displayed significant leverage, while retirees saw pensions revalued in line with consumer price changes, and the interprofessional minimum wage reached 1,080 euros. Civil servants benefited from a government salary framework, and a broad group of private sector workers also experienced adjustments through salary review provisions.
On May 1, CCOO and UGT plan to use the day as a loudspeaker to encourage voters to participate in regional and municipal elections scheduled for late May, with general elections anticipated thereafter. The unions emphasize that they will not endorse any particular party but insist that workers have a stake in both wage negotiations and broader fiscal policies. A union representative emphasized that while wage increases are important, they should not be used to cover rising rents or unfavorable private arrangements. The statement reflected a broader concern about how wage gains interact with overall living costs and housing affordability.