In a significant move aimed at improving work-life balance and boosting productivity, Spain’s minority leftist government has approved a plan to reduce the working week from 40 to 37.5 hours by the end of 2025. The proposal, which would impact about 12 million workers, including those in retail, hospitality, and agriculture, is part of the government’s coalition agreement with the far-left Sumar party.
Details of the Plan
The proposal aims to maintain current wages despite the reduction in working hours. Public sector employees and most large companies already adhere to a 37.5-hour workweek. The Spanish government, led by the Socialists, believes this measure will modernize the workforce and enhance productivity, which has been a key challenge for Spain’s economy, despite a 3.2% expansion in 2024.
Political and Business Resistance
However, the plan faces significant hurdles. Business leaders are concerned that reducing working hours could stifle economic growth and hurt vulnerable sectors already showing signs of fragility. Business groups had pulled out of negotiations after 11 months of talks, arguing that the reform could be detrimental to certain industries.
Moreover, the Spanish government needs to win support from parliament to pass the proposal. This could be difficult, as key pro-business Catalan and Basque separatist parties have expressed reluctance toward the plan.
Labor Minister’s Vision for the Future
Labor Minister Yolanda Diaz has defended the plan, calling it a step towards modernizing Spain’s economy. She emphasized that the reduction in working hours would improve workplace efficiency and provide a hopeful outlook for workers. The government is keen to push this reform as a means to foster better work conditions and maintain Spain’s competitive edge in the global economy.