Fifty-five percent of private sector employees currently covered by a collective bargaining agreement will see a reduction in maximum working hours to 38.5 hours per week this year. This finding comes from data gathered by the Ministry of Labor on collective bargaining, analyzed by the union at a press conference held this Tuesday. The Center notes that the impact of this measure will be meaningful this year, but the most substantial shift is anticipated in 2025, when the government has pledged to cut the maximum weekly workday to 37.5 hours. Roughly 87% of employees under the contract are expected to benefit.
Second vice president and Minister of Labor Yolanda Díaz is set to begin talks with social representatives this Thursday to determine how to move from the current 40 hours down to 38.5 hours. She spoke to members of Congress last Monday and issued a message to business leaders who show reluctance, or opposition, to the change: “I would like to reach an agreement […] But if a three-piece agreement is not possible, a two-piece is.”
The government publicly asserts its resolve to achieve this reduction through legislation, with a gradual impact on private sector workers. The changes planned for this year affect fewer than half of those covered by a collective agreement. In the public sector, a 37.5-hour week is already standard, while the Administration is advancing toward a 35-hour week at different paces.
When will the 38.5-hour workweek come into effect? The Government’s legislative agenda
According to data from the Ministry of Labor, just over half of employees in 2023 had more than 1,759 annual working hours stipulated in their collective agreements. Weekly hours often exceed 38.5 hours. It is this group, along with workers not covered by any contract and directly addressed by the Labor Code, who should notice the hours reduction most.
CCOO indicates that the sectors benefiting most from this change will include rural-area enterprises in hospitality and trade. The Active Population Survey (EPA) data also covers branches such as manufacturing, scientific activities, and construction. However, many workers in these sectors legally have shorter weekly hours, yet their actual hours may still surpass those limits.
Given the gap that can exist between legal prescriptions and actual company practices, CCOO secretary general Unai Sordo stressed the importance of including employers in a broad agreement to reduce hours to 38.5 and, later, to 37.5. With their cooperation, the center believes compliance will be easier and the need for Labor Inspector intervention in cases of potential fraud will be reduced.
Cooperation will be even more critical in 2025, when the government has committed to a 37.5-hour maximum weekly workday. This shift will affect nine out of ten employees covered by collective agreements. Sordo defended the reduction of hours as a virtuous approach to productivity and highlighted the benefits that digitalization and artificial intelligence can bring to companies.
Raising salaries
CCOO assessed how collective bargaining addressed salary improvements through 2023. The outcome was mixed. Agreements signed in 2023 delivered an average salary increase of 4.6%, surpassing inflation by one percentage point. This benefited about 3.7 million workers.
Sordo also highlighted the revitalizing effect of the general agreement reached between employers and unions in May, calling it a success and noting that salaries rose in 2023, with collective bargaining acting as a powerful driver. The 2023 agreement aimed for a minimum salary increase of 4%, which data confirms was achieved. The forecast for this year points to a 3% rise.
Nevertheless, the average salary change across renewed contracts, including those signed earlier with yearly increases, stood at 3.5%. This aligned with the inflation rate, helping preserve purchasing power in general, even though the 3.5% revaluation lagged behind an 8.5% CPI, leaving a portion of purchasing power eroded.
A further issue raised by the union is that plans to generalize protections for purchasing power against unpredictable CPI changes have not been extended. Only 14.7% of renewed contracts include a salary guarantee clause affecting 23.4% of employees. The union noted that the results were not positive, and many employers have drawn a line in the sand, with most industries opting to offer increases rather than require more specific guarantees.