Tensions over minimum wage policy and talks with employers
Despite their earlier refusal, the meeting—also extended to employers—was scheduled for 09:30 in the Oval Hall of the Ministry of Labor and Social Economy. The gathering aims to address the proposed changes to the minimum wage and the conditions that would accompany any increase.
The Ministry of Labor and Social Economy has floated a bifurcated plan for 2023, proposing a raise in the minimum wage (SMI) to either 1,046 euros or 1,082 euros gross per month, paid in fourteen installments in the first option or in twelve installments with higher monthly figures in the second. This range comes from the recommendations in a Commission of Experts report presented earlier this week by Yolanda Díaz, the portfolio head, during a formal briefing. The government is signaling a commitment to raising the SMI, which, in 2023, is aligned with 60% of the national average wage. Unions broadly favor lifting the minimum wage, while some demands from major unions exceed the Department of Labor’s expert assessment. [Citation: Commission of Experts report, presented Monday]
At present, the social partners are debating two different trajectories. The Unión General de Trabajadores (UGT) and the Comisiones Obreras (CCOO) propose raising the SMI to between 1,082 and 1,100 euros per month, a 82 to 100 euro increase compared with the current level and above the initial starting point for many workers. UGT, in particular, advocates a more aggressive increase, proposing 1,100 euros per month for 2023, roughly 10% higher than the present figure. The dialogue on the SMI continues to unfold in tandem with broader labor reforms and wage discussions.
Minister Díaz has not publicly fixed a sole increase for 2023, but has indicated openness to reviewing the SMI within the next six months if Spain’s economic situation warrants it. He did not set a closing date for negotiations at the social dialogue table, leaving room for a potential ratification of the SMI in January, acknowledging that only two government terms remain before year-end. The path toward retroactive adjustments remains a live option depending on the final agreements reached.
Tensions between the Labor Ministry and the CEOE
Díaz stressed during a Monday press conference that all social actors, including unions and employers, would be invited to the meeting scheduled for Wednesday. Yet, the Confederación Española de Organizaciones Empresariales (CEOE) had already declared that dialogue with the Ministry had broken down, characterizing the talks as invalid with a trusted interlocutor as measures are considered to shift control back to the Regulation Files unit of the Ministry. Stakeholders expressed concern that the reform talks might be diverted from the core wage negotiations by changes to the Labor Code that would reassign oversight. [Citation: CEOE statement on talks and proposed amendments]
Spanish business leaders insist that the reform debate must stay focused on fair wage policy, arguing that any changes without clear consent could complicate negotiations. They maintain that meaningful engagement with the Labor Ministry requires a stable framework and a clear commitment from Díaz’s team to address core concerns before advancing reforms. CEOE head Antonio Garamendi confirmed in Valencia that employers will not attend the upcoming Labor Party meeting, though they plan to respond in writing to the government’s proposals. He added that their absence stems from the belief that the most important labor reform agreement has already been signed and that any change to Article 51 by royal decree would shift control away from the private sector to the public ministry. In parallel, business boards were convened on the same day to discuss these matters ahead of the official negotiations. [Citation: Garamendi remarks and Valencia briefing]
The core issue, according to Garamendi, is that the private sector has already contributed to a broad labor reform agreement and believes further amendments should come through formal, collective processes rather than unilateral steps. The CEOE leadership emphasized that social partners play a consultative role in SMI negotiations, as defined by Article 27 of the Labor Law, while the final amount is determined by the Government. The two sides continue to explore a path toward a consensus on wage floors, even as tensions surface regarding the procedure and scope of reforms. [Citation: Article 27 of the Labor Law and social partner roles]
Spanish explanations and ongoing dialogue
The second vice-president and Minister of Labor reiterated that ties with employers have not been severed, and all existing negotiation forums are expected to continue. He urged social agents to honor their constitutional roles and warned business interests that those who refuse to participate may need to explain the inflation impact to the public. He underscored that any failure to attend could require a full public explanation, not just a government account, emphasizing accountability to the broader population. Garamendi countered that the minister should explain his own responsibilities, signaling a back-and-forth over governance and oversight. [Citation: Parliamentary remarks]
Several business leaders noted in Valencia that the influence of social agents in the SMI negotiations is advisory in nature, as outlined in law, while the final decision rests with the Government for 2023. The current stance keeps the door open for negotiations while acknowledging that any decisive movements in the wage floor will require a clear mandate and broad consensus among all parties. [Citation: Labor Law Article 27 summary]