In a move that affects many workers, the large employers’ group CEOE and the two major unions, CCOO and UGT, reached a preliminary agreement on how wages should rise in the coming years. After weeks of careful talks and a first failed attempt at a broader collective bargaining process, the social partners agreed on a plan to raise salaries by at least 10 percent over the next three years.
A well-crafted framework exists that may not apply equally to every employee and is expected to be incorporated into ongoing contract negotiations, which are periodically renewed by the labor unions and the companies within various industries. The following points highlight the core elements of the agreement among the social partners.
What exactly was agreed?
Employers and worker representatives sign on to a principle of consensus around the Employment and Collective Bargaining Framework, known by its Spanish acronym AENC. This framework is periodically updated by the national employers’ association and the most representative unions. It lays out several elements that the parties commit to bringing into sectoral agreements they renew. While AENC may offer guidance on salary structures, the key issue for most workers is the salary increase itself and how it translates into their take-home pay, alongside considerations about work hours and job security.
In the preliminary agreement, which must be endorsed by the leading employers’ organizations and the main unions, the parties commit to a wage rise of at least 10 percent by 2025. Structurally, this translates to 4 percent for 2023 and 3 percent for 2024 and 2025 combined.
An additional 1 percent is contingent on the evolution of the consumer price index (CPI). In practical terms, if the CPI ends this year above 4 percent, salaries would rise by 5 percent. If CPI remains above 4 percent in 2024 and 2025, the combined increase would be 4 percent.
Will all salaries rise automatically?
No. The AENC serves as a roadmap to guide sectoral negotiations, and its implementation depends on the renewal of each agreement. In other words, starting tomorrow, companies are not obliged to raise every salary by 4 percent. Workers cannot simply press a factory manager to enforce those increases either; legal claims would be necessary to compel adjustments.
The salary adjustments hinge on the periodic renewal of contracts. Collective agreements define the rules that typically apply across a sector, regardless of province or region. Each worker’s salary is adjusted when the contractually defined updates occur, and workers cannot rely on the framework’s recommendations until their agreement is renewed.
Is it mandatory?
No. The AENC is not a legally binding rule; it functions as a reference point. Historically, signatories in certain sectors have agreed on increases that exceed or fall short of what the framework suggests. In other words, not all contracts need a three-year renewal and a cumulative 10 percent increase. While the signatories, who represent major labor and employer groups, encourage adherence to the agreed ranges, the framework itself does not mandate universal adherence.
Does it affect all sectors?
There is nuance. The AENC is a payroll roadmap that commits the signatories to its guidance, but the most representative employer and union groups determine its reach. In many industries, these signatories have the authority to negotiate on behalf of most workers. However, in some sectors or regions, other representative bodies may wield influence and are not bound by the AENC rates.
For example, smaller regional employer associations that are not signatories may negotiate different salary increases in the contracts they oversee. In regions like central Euskadi, for instance, local unions have significant influence in specific sectors and may not align with the overall agreement.
What happens to already signed agreements?
The AENC serves as a reference point for renewing future deals. Existing agreements that have already been signed and are not yet expired are not immediately altered by this framework. In practice, after their term ends, the parties may choose to approve a 10 percent cumulative increase over three years. However, the framework does not compel signatories of applicable collective agreements to revisit and revise already agreed-upon salary increases. It is designed for agreements whose negotiations are ongoing or nearing expiration, providing a reference for possible updates.
Source: expert summaries and sector analyses by labor market researchers and representative bodies when discussing the scope and impact of national wage guidelines. Attribution can be found in official statements released by the signatories and regional labor authorities.