Spanish unions and employers discuss pay

The two main Spanish trade union confederations, CCOO and UGT, and the CEOE employers’ association have held further discussions on a possible agreement, setting out pay recommendations to local negotiators. In the past, this was a standard feature of the Spanish industrial relations system, but the last agreement lapsed in 2020 and has not been renewed.

The unions are looking for a three-year deal which will provide an increase of 5% for 2022 (backdated), 4.5% for 2023 and 3.75% for 2024, along with an inflation catch-up mechanism, which will take account of the extent to which actual inflation differs from the forecast, and the financial position of the employers. Inflation in Spain is currently 3.3% (March) and has fallen sharply since the middle of last year, although underlying inflation is much higher (7.5% in March).

The operation of the inflation catch-up mechanism is the main sticking point for the employers. The latest official figures show negotiated pay rising by an average of 3.06% in the first three months of 2023. The increase for agreements signed this year is 4.82%.