In recent talks, the Ministry of Labor reported progress toward an agreement in principle with the unions on the new Scholarship Status. The goal is to establish a framework that would shape how internships are managed by both companies and universities, with the minister, Yolanda Díaz, expected to decide when to take the proposal to the Cabinet for final approval. The reform seeks to ensure that internships carry clear obligations, including some payments by employers, and sets a defined duration for internship periods in light of the length of time students typically spend in these programs. This understanding was confirmed by multiple insiders present at the ministry meeting and was followed by continued discussions with social partners on Monday afternoon. The stance of business groups, particularly as represented by the presidents of employers’ associations, has pushed the government to finalize terms that do not overly raise labor costs, a position that aligns with the sector’s recent stance on the minimum wage and pension contributions. The unions indicated that while the current draft is not yet final, the arrangements negotiated so far could lead to a favorable outcome for workers in internship programs, with the unions prepared to forward the final text to the relevant governing bodies after the latest discussions. There is a sense that the unions see potential in a negotiated agreement, even as some participants stress that further details remain to be resolved.
The business community, led by Antonio Garamendi, has resisted any increase in labor costs and has signaled disagreement with several elements of the draft, including the proposal to introduce a 90 percent contribution subsidy for unemployment-related costs. They also point to a broader divergence from recent adjustments in minimum wage and pension-related policies. The proposed reform would end extracurricular internships as of 2025 and would impose an upper limit on internship participation based on company size, in addition to mandating that employers cover interns’ transportation expenses. The business bloc argues that these provisions would heighten operating costs and could disrupt current internship practices across sectors.
Nonetheless, some negotiators concede that the employer side has not always been the central obstacle. They contend that the main difficulty lies in achieving a balanced agreement that universities, employers, and social security can jointly accept. When it comes to university involvement, critics lament that the draft does not sufficiently account for the role of higher education institutions in internships, while universities themselves remain cautious about accepting new terms without broader consensus. The social security component, which featured prominently in the talks, has been adjusted with higher subsidy rates to address concerns about predictable cost increases, aiming to make an accord more palatable to business interests. These adjustments come as the parties seek a path forward that preserves access to internships for students while maintaining a sustainable funding model for the system.
As the government works to secure ratification of the Scholarship Status reform, it faces internal differences and a need to build support from employers. The Ministry of Universities and the Rectors Conference have played a significant role, since universities are among the primary hosts of interns in the country, though they remain hesitant to endorse the new rules without broader buy-in from the business community. The negotiations have seen some self-imposed delays, with the objective of presenting a unified position to legislators and stakeholders. The overarching aim is to reach a three-way agreement that satisfies workers, educators, and employers alike, while avoiding an appearance of closing negotiations prematurely. Neither the Labor Party nor the business sector wants to be seen as retreating from a potential consensus, yet both sides acknowledge that more work is required to bridge remaining gaps and to ensure the reforms are implementable in practice.