Shoes and Policies: Pressures on Spain’s Footwear Sector Over Payment Terms and Labor Rules

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Spanish footwear manufacturers warn about the challenging border situation facing the industry, marked by reduced European demand. They are pressing both the national government and the European Union to avert proposed changes that could tighten late payment rules or restrict the use of fixed-term contracts. These shifts threaten the sector’s competitiveness on multiple fronts.

Thus, Rosana Perán, president of Fice from Elche, met with the secretary-general on Thursday, accompanied by the organization’s vice presidents and the head of its social and labor department, to request mediation with Spanish authorities and to communicate their concerns to European leaders.

Representatives of Spanish shoe companies explained to the government and the EU the extraordinary challenges the industry is currently facing. They warned that without adjustments to rules governing late payments, the use of intermittent fixed contracts, absenteeism, and working hour reductions, companies could lose their competitive edge. Marian Cano highlighted the ongoing complex economic situation driven by inflation and declining consumption, noting that existing regulations and proposed measures are already creating serious problems for firms across the sector.

A snapshot from a meeting between Fice and Cepyme.

Among the sector’s major concerns are new European Commission proposals aimed at tackling late payments, which could have a disproportionate impact on shoe manufacturers. Fice argued that the shortening of payment deadlines, already evident since the entry into force of the CREA y Crece law, complicates international transactions for Spanish firms, which typically experience longer payment cycles due to the low turnover nature of footwear products.

loss of aid

It was stressed that the priority should be ending late payments rather than rapidly shrinking payment terms. Footwear products, which often have low turnover, must be granted a 30-day payment window as established by CREA y Crece. Failure to comply could lead to disqualification from European aid, according to Cano.

The group emphasized that terms must be clarified across Europe, with distinctions made between high- and low-turnover products. At the same time, shoe entrepreneurs pushed for private agreements between buyers and sellers at the time of contract closure as a possible way to preserve flexibility.

Rosana Perán, president of Fice, stated that the current environment is eroding competitiveness and placing the sector in urgent need of export-oriented opportunities across global markets. She added that tightened measures reduce flexibility and erode competitiveness, and delays in payments do not pay off for anyone involved. The CREA y Crece framework, by limiting free agreement on payment terms, fails to differentiate between product types with varying turnover levels.

Participant at the Futurmoda shoe components fair.

Representatives of the shoe employers’ association also briefed Cepyme’s secretary on the extraordinary conditions caused by falling consumption, a shrinking industrial production index, rising raw material costs, and rigidities tied to fixed, discontinuous contracts. They argued that the status of a crucial industry figure is under threat, potentially leading to layoffs or temporary work regulation schemes that inflate labor costs during lean periods.

Reducing working hours

The association warned against government proposals that would impose shorter working days without corresponding social dialogue. Marián Cano recalled the four-year collective agreement reached after negotiations with unions, which included wage increases and reduced working hours. He argued that social dialogue should guide the sector rather than unilateral measures that could strain businesses that rely on mutual agreements with workers.

FICE predicts reduction in working hours will lead to layoffs in the shoe industry

In addition, the persistent rise in absenteeism in Spain adds to the burden. Fice urged the government to listen to the sector and avoid adding obstacles to competitiveness, stressing that safeguarding employment is essential for the sector’s survival.

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