Across the industry, metal works find themselves hearing only the drums of disruption. From this point forward, new developments in Cádiz seem unlikely as unions renew deals in cities like Barcelona, Tarragona, Ourense, and Ávila. These agreements bring salary increases of roughly 12 to 15 percent over the next three or four years, preserving most workers’ purchasing power. This stands in stark contrast to many service sector negotiations, where wage offers lag behind those seen in steel mills and related facilities.
CEOE, the main employers association, rejected a broad wage pact and embraced a deal-by-deal approach. That stance risks widening gaps among workers and firms. Union influence remains strong in locked-in contracts, and even as purchasing power declines across the board, the strain weighs on both manufacturing and services. In Barcelona, the scale is telling: metal, offices, and related services each employ a similar number of people, roughly between 160,000 and 200,000. One subsector reached a preliminary agreement with wage increases twice as high as another that has yet to finalize a contract.
The absence of a new Employment and Collective Bargaining Agreement (AENC) widens sectoral inequality, complicating the recovery from the crisis caused by the pandemic and the ongoing pressures of the current cost of living. While the secondary sector, especially energy-intensive areas, faces higher input costs, the tertiary sector has endured two very challenging COVID years and now contends with inflation. Overall, material costs have surged, affecting planning and margins across industries.
There was a pause in wage progress that came with a slew of suspensions. This was heavily felt in guilds like hospitality, travel, and related services, where salaries run well behind those in manufacturing. For instance, a hospitality professional earned, on average, about half of a manufacturing professional, based on the latest wage structure survey from INE. In 2020, average hospitality gross pay hovered around €1,178 per month over 12 payments, whereas manufacturing professionals earned around €2,322 gross.
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The current trajectory of collective bargaining threatens to widen these gaps further. Most union centers are weighing whether to accept deals that do not meet expectations or to persevere in negotiations while salaries remain frozen. In Barcelona, the hotel sector saw UGT sign a new agreement with a 9 percent wage rise for 2022 to 2024, with no clause for salary reviews, while CCOO chose not to sign. Despite frequent complaints from industry employers about a scarce talent pool, the proposed increases still fall short of current inflation, and some business groups rejected the agreement as excessive.
Industry-wide inequality persists as some sectors maintain peace through agreements and modest gains, while others face conflicts over pay. This dynamic invites broader tensions and debate about labor representation. Other unions in Catalonia, such as CGT, have signaled tougher tactics, claiming that agitation and strikes are necessary to resist austerity. CGT in Catalonia currently reports 1,485 union delegates, about 3 percent of the total. Their leadership argues that no concessions will be handed over willingly, pointing to strikes as a critical tool in negotiations.
Across the board, the labor market faces a layered puzzle: prospective wage increases, cost pressures, and shifting union strategies. The balance between formal agreements and flexible, grassroots action remains fragile. Observers note that without coordinated action, wage disparities between sectors could widen, affecting consumer demand and overall economic resilience. Marked responses from employers, unions, and government bodies will likely shape the pace and scope of compensation in the months ahead, with a focus on preserving purchasing power while maintaining competitiveness in both manufacturing and service sectors. This ongoing dialogue continues to define the path forward for workers seeking fair compensation amid inflation, while employers weigh productivity, costs, and labor stability.
[Citation: INE wage structure survey provides the baseline for comparing sectoral pay levels and the pandemic-era adjustments.]