Spain's a step closer to a shorter work week, here's how unions helped get here

Spain moved closer to adopting a shorter workweek with the same pay after the government and two major trade unions reached an agreement Friday (December 20) to reduce the maximum workweek from 40 hours to 37.5.

The measure, which Labour Minister Yolanda Díaz described as “historic,” still requires approval from a divided parliament.

The agreement between the left-wing minority government and the UGT and CCOO unions would affect approximately 12 million workers and aim to improve work-life balance while reducing carbon emissions.

Díaz, also deputy prime minister and leader of the leftist Sumar party, hailed the initiative as a long-overdue step for Spanish workers.

“Today, we’re settling a debt with the working people of Spain … with the new generations who understand that personal time is not a luxury, but a fundamental right,” Díaz said.

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The reduction, slated for implementation by the end of 2025, would calculate the 37.5-hour limit on an annual average, treating additional hours as overtime.

Enforcement mechanisms will include stricter work-hour recording requirements and penalties of up to €10,000 ($10,382) per non-compliant worker.

The unions played a key role in securing the deal, framing it as a measure to address precarious jobs while prioritising workers’ rights.

However, the plan faces resistance from Spain’s main business association, CEOE, which argues such changes should emerge from collective bargaining rather than government mandates.

“The real focus should be on the economy, not headlines,” said CEOE President Antonio Garamendi, who expressed concerns about increased costs for businesses.

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Economy Minister Carlos Cuerpo, a Socialist, suggested the timeline could extend into 2026 to provide flexibility for small businesses and build parliamentary support. With the government’s reliance on smaller parties like Catalonia’s Junts, securing passage remains uncertain due to potential opposition from business-friendly factions.

The measure is a cornerstone of the ruling coalition deal between the Socialist Party and Sumar, underscoring Spain’s broader push to modernise labour laws and address workers’ rights in a post-pandemic economy.

With inputs from agencies