Salary Trends and January Collective Agreements: A Labor Market Snapshot

Only four deals signed in January

In January, the incremental figures shown by labor statistics indicate that most collective agreements recorded for the year became effective in 2023, even though their terms were established earlier. The month saw 1,774 agreements with economic implications for 2023 registered, but only four of these were signed in the current year. The average salary boost among the January contracts stood at 3.34 percent, while the 1,770 agreements signed in prior years carried an average increase of 2.81 percent. These figures reflect a cautious approach by both sides, balancing new commitments against existing frameworks.

The registrations accounted for around 5.4 million workers under these agreements, providing a baseline of wage policy across the covered workforce. The scope of impact shows how the January activity translates into real terms for a large segment of workers across various sectors.

The data show that the January contracts collectively shield a substantial portion of workers from sudden earnings erosion, aligning with the broader goal of maintaining purchasing power in the face of inflation. The record suggests a cautious trend in wage negotiations, with many agreements continuing to rely on previously negotiated terms rather than new, aggressive adjustments.

Overall, the January cohort of contracts represents a snapshot of ongoing bargaining dynamics in the labor market, highlighting the persistence of cautious salary advancement and the importance of long-term planning for both workers and employers.

The consolidated figures imply that the January activity remains anchored in past practice, while still affecting a large and diverse workforce. The total worker reach of these agreements underscores the broad influence of collective bargaining on salary progression and employment conditions across the economy.

Almost 73 percent of employees lack review provisions

Labor statistics reveal that most contracts signed in January did not include a salary review clause designed to safeguard purchasing power. Among the 1,774 contracts recorded, only 16.8 percent, which is 298 contracts, contained a wage guarantee clause. Of these, 214 contracts contemplate retroactive application, indicating how some agreements anticipate adjustments once the agreement takes effect.

Contracts that include a salary review mechanism affect just over 1.46 million workers, representing about 27.2 percent of the total workers covered by the January contracts. The remaining contracts do not provide a built-in adjustment feature, leaving many employees exposed to inflationary pressures without automatic protection.

Therefore, although the share of workers safeguarded by review clauses has risen since December and is approaching the level of the previous period, the great majority of workers—nearly four-fifths—still operate without such provisions in their collective agreements. Ensuing months may show changes as bargaining rounds continue to address purchasing power and wage protection concerns.

Preliminary data from the Bank of Spain indicate that slightly more than 45 percent of workers with contracts already signed for 2023 include salary review clauses. This signals a developing trend toward formalized mechanisms for price-based adjustments within new agreements.

Three out of ten deals include a raise of more than 3 percent

From the total number of agreements registered in January, 1,323 contracts applied to 340,983 employees and carried an average salary increase of 2.70 percent. An additional 451 contracts pertained to industry-level agreements, covering roughly 5 million workers with an average rise of 2.82 percent.

The typical working day outlined in these contracts averaged 1,752 hours per worker per year in January, with 1,710.7 hours for company contracts and 1,754.8 hours for senior contracts. These figures give a practical sense of how wage changes intersect with annual working time commitments.

Among the 1,774 contracts, 49 contracts, or 2.7 percent, included a salary freeze. Roughly 31.6 percent of contracts saw increases exceeding 3 percent. In practical terms, about three out of ten contracts featured greater than average gains, with an overall average increase around 4.67 percent for those higher-tier agreements.

More than half of the contracts, specifically 54.6 percent, showed average salary increases ranging from 0.5 to 2.5 percent. In contrast, 59 percent of the contracts recorded increases above 2 percent. There were no agreements recorded in January that involved pay cuts, according to the statistics analyzed for this period.

Workers affected by pick-ups increased by 45 percent

Labor statistics also show that 90 contracts were not implemented in January, up from 80 in the same month of the previous year, marking a notable rise. These so-called disconnections affected a total of 3,799 workers, which is a 45.1 percent increase compared to January 2022. The withdrawal of these contracts implies a reexamination of working conditions within the affected companies.

Across the observed period, the economy shows a propensity for cautious wage movements and persistent attention to purchasing power. The pattern highlights that the bargaining landscape remains sensitive to inflation trends, with ongoing adjustments and renegotiations likely as set timelines unfold and new contracts are evaluated for their long-term impact on workers and employers alike. In summary, January’s activity underscores the balance struck between protecting employee earnings and preserving business viability within a fluctuating inflationary environment.