In Madrid on February 4th, Spanish ministers agreed to reduce the working week from 40 to 37.5 hours without changing salaries, pushing forward a cornerstone policy of the coalition government despite opposition from employers' groups.
During the weekly cabinet meeting, Labor Minister Yolanda Diaz, from the hard-left party Sumar, presented the executive decree outlining the reduction. She stated to reporters, This proposal aims to improve quality of life, work fewer hours, and increase productivity and economic efficiency.
The measure still requires approval in parliament, where the center-left government led by Prime Minister Pedro Sanchez, lacks a clear majority and would need support from several smaller parties.
Diaz, also the Deputy Prime Minister, has made the reduction of working hours by the end of 2025 a key condition for her party's support for Sanchez's leadership.
However, the center-right Catalan separatist party Junts and the main employers' lobby, CEOE, have expressed opposition. CEOE criticized the proposal, stating that it could raise costs for Spanish companies and reduce competitiveness.
Diaz accused CEOE of favoring employers' interests over workers', when negotiations with them stalled in November over the method of implementing the shorter workweek.
CEOE's chief, Antonio Garamendi emphasized, The business sector supports dialogue but opposes unilateral decisions.
Spain's central bank and a former economy minister have cautioned that increased labor costs could lead to inflation and hinder job creation.
Despite concerns, following the cabinet's decision, Cuerpo mentioned that companies might resist the change due to Spain's robust economic growth, decreasing inflation, and a 16-year low unemployment rate.