Recent labor reform is proving to be a powerful tool for businesses facing uncertainty. About 60% of new contracts in the state are now formalized as indefinite, a shift from what used to be a reference point. This change, celebrated by some, has become a challenge for Alicante’s footwear industry. The Ministry of Labor is not accounting for impermanence, and firms are forced to move around 15,000 workers into permanent positions. The dynamic carries potential risks for industry vitality. Companies warn that they may need to file an Employment Regulation File for each downturn in business, urging regulations that consider industry specifics.
In the latest episode of the Converses de futur series, organized by INFORMATION and Iberian Press with the Generalitat and the Elda City Council, footwear leaders raised the alarm in the presence of the Concell president Ximo Puig. They discussed the adverse effects of the national labor reform on the sector. Business representatives note that since 1961 the footwear industry has used a form of temporary arrangement, noting two distinct production campaigns autumn-winter and spring-summer, with intermediate periods. The throughput that allows suspension of activity for up to 60 days has narrowed. The system was replaced in 1990 by a discontinuous fixed contract that gave companies similar flexibility.
Yet the reform now prompts a new conflict as the Ministry of Labor signals that non-permanent workers should move to regular staff. Workers unemployed for less than 60 days or equivalent to 20% of annual working days would lose a dynamic tool companies rely on to adapt to demand fluctuations. Estimates indicate that roughly 70% of workers in the industry are on permanent discontinuous contracts and would need to become permanent workers.
Marián Cano, president of the Valencian Footwear Entrepreneurs Association, emphasizes that the discontinuous fixed contract remains important because campaigns vary in intensity and timing. He points to broader issues such as disrupted supply chains, transportation costs, and raw material shortages that intensify organizational challenges and create uncertainty about workforce needs. He notes that this form of agreement is part of ongoing sector discussions that have faced hurdles in collective bargaining due to salary disagreements.
As Puig signaled in his outreach, footwear employers want the Generalitat to communicate the sector’s characteristics to the labor ministry so the Labor Inspectorate can consider them during reform implementation. The Concil president promised to facilitate dialogue among economic and social actors to find common ground.
The sentiment is shared by many shoe companies. Antonio Porta, CEO of Unisa and head of the Technological Shoe Institute, criticizes the new instructions from the Ministry for hindering internal organization and job growth. He warns that removing the discontinuous fixed contract could have negative consequences that are hard to predict.
Mila García, manager of Pedro García, also highlights the pressure to convert all workers to regular staff, noting the risk of being forced to file layoffs when workloads drop. She calls the approach incomprehensible and damaging to planning and stability.
Newkers director Manuel Ruiz notes that his company already permanently hired workers who were previously on permanent discontinuous contracts. He argues that the reform lacks a clear starting point or end, harming workers and forcing layoffs when activity declines, even if unemployment funds have not been exhausted. He stresses a broader impact on morale and hiring willingness as a result.
Pedro Miralles, director of a footwear firm that shares his name, stresses that the intermittent fixed line method has long been a part of the industry. Its disappearance, he says, would erode trust, lengthen the process to stabilize teams, and potentially slow hiring due to worker concerns about future stability. The reform could dampen employment prospects as well.
The reform may affect other sectors, though to a lesser extent. Manuel Román, president of the Spanish Association of Shoe and Leather Goods Components and Machinery Companies, notes that permanent staff in this sector is already lower because of highly specialized roles. He argues that while some companies share the concern, there is support for measures that address industry-specific needs. He describes the discontinuous constant as an essential consideration for sectors with unique production patterns and roles.
Shoe companies confirm that the new fixed-discontinuous contract will push them towards the ERE.
Unions present a contrasting view. Salvador Navarro, head of the Valencia Community Business Confederation, acknowledges labor reform aims to promote employment stability while allowing temporary contracts in special cases. He suggests that in tourism, footwear, and agriculture, collective bargaining should involve sector-specific needs because campaign cycles, weather, and production rhythms dictate variability. [Source attribution: Valencia Community Business Confederation statement]
Carlos Baño, president of the Alicante Chamber of Commerce, supports a negotiated approach that considers sectoral characteristics. He notes that measures should account for shortages in skilled labor and that local authorities in Oda, Elche, and Elda plan to promote training through initiatives tied to Pikolinos and Studio Ilana.
Unions defend the reform as a tool against informal economy and unfair competition. Paco García, CC OO general secretary for l’Alacantí and Les Marines, argues that business complaints are overblown when company results improve. He points to tourism as an example of progress and emphasizes that Alicante concentrates a large share of high-quality footwear products. He argues permanent hiring helps address unfair competition and generational changes linked to informality.
Yaissel Sánchez, general secretary of the UGT, notes that the reform also aims to prevent practices where workers are kept idle during holidays. He argues that stabilizing employment over the long term would help the sector, which faces a heavy informal economy and persistent difficulty in finding qualified labor. The overarching goal is to bring more stability to employment through reforms that reflect sector realities.