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The Spanish government has decided to reduce the working week from 40 to 37,5 hours without reducing wages, as part of a key reform package by the coalition government, despite criticism from employers.
Reuters reports this.
The relevant decree was prepared by the Ministry of Labor, headed by Yolanda Diaz. However, for the final implementation of the reform, the document must be approved by parliament, where the government does not have a stable majority and depends on the support of smaller political forces.
The shorter workweek is one of the main initiatives of the left-wing Sumar party, which supports Prime Minister Pedro Sanchez. However, some political forces, including the Catalan Junts party, are opposing the initiative.
The CEOE employers' association said that the reduction in working hours would increase companies' costs and reduce their competitiveness. Negotiations between the government, unions and business representatives lasted for several months, but in November the dialogue with employers reached an impasse. The business community insisted that the reduction in working hours should be done through collective agreements, not at the legislative level.
The economy ministry has also expressed concerns about the impact of the new rules on businesses, proposing to delay their implementation by a year to give small businesses more time to adapt. Spain's central bank and a former economy minister have warned that rising labor costs could lead to inflation and slow job creation.
Despite these risks, the government is confident that companies will be able to adapt to the changes, as the country's economy is showing steady growth, inflation is declining, and unemployment is at its lowest level in 16 years.
