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Spain Is Cutting Work Week To 37.5 Hours Without Affecting Wages
In one of the developed economies with the greatest rates of growth in the world, Spain’s minority socialist government adopted a plan on Tuesday to cut the work week to 37.5 hours.
However, the bill is unlikely to pass parliament, and corporate executives are concerned that it could hinder expansion. As part of their 2023 coalition agreement with the far-left party Sumar, the Socialists promised to cut the work week from 40 hours to 37.5 hours by the end of 2025 without sacrificing pay.
After more than a year of political fighting, the cut was agreed upon and will impact approximately 12 million workers, primarily in the retail, hospitality, and agricultural sectors.
The majority of big businesses and workers in the public sector currently work 37.5 hours a week.
The idea, according to Labour Minister Yolanda Diaz, would “modernize Spain” and increase productivity, which is the economy’s weak point after it grew by 3.2 percent last year, leaving its European counterparts behind. Following a cabinet meeting, the Sumar leader told a press conference that “it’s about being efficient at work” and “gives hope” to people.
The agreement comes after a deal with Spain’s two major unions was inked last year, although it did not include the representatives of business leaders who had withdrawn from negotiations after 11 months.
They fear that the change could hurt some sectors of the Spanish labor market, which is already fragile after unemployment started to rise in January.
Finding allies to get the proposal passed in parliament is another difficult issue for the government, particularly in light of the hesitancy of two important pro-business Catalan and Basque separatist parties.
Gentle Reminder: Be careful how you use your authority and influence, be wise, and treat others with respect.
Chychy Jonas
