Alicante Business Associations Unite Against Reduced Working Hours

Two days ago, on February 5th, the Council of Ministers approved the draft bill to reduce the working week to 37.5 hours without salary loss. This measure, seen as essential by Sumar for forming a coalition government with the PSOE, has been advancing steadily for over a year.

After numerous meetings, this agreement was signed with the unions, while the business sector has consistently opposed it. Now, with the legislative process pending, Labour Minister and Second Deputy Prime Minister Yolanda Díaz estimates the law will become effective by mid-2025, a development that has not been well-received by business associations in Alicante and the Valencian Community.

All agree on one point: the measure will harm businesses. The Valencian Community Business Confederation (CEV) has repeatedly denounced this measure, labelling it "populist and irresponsible" over a year ago. Its president, Salvador Navarro, has frequently expressed concern about the "consequences" the law could have on business productivity and competitiveness.

The CEV maintains its initial stance, warning that measures "increasing labour costs or reducing business flexibility could hinder job creation and affect competitiveness, especially for SMEs." The business community stresses the importance of collective bargaining "to agree on measures that promote employment stability and do not introduce barriers to hiring."

The Alicante Provincial Business Union (Uepal) shares the CEV's position, criticising the Council of Ministers' decision and asserting that the law "will have a neutral impact on workers and a significant negative effect on the viability of many small businesses and SMEs." It is important to note that most companies in the province are small, with limited staff.

Uepal President César Quintanilla warns that the measure "will pose a problem for many businesses," particularly micro-enterprises and SMEs. Quintanilla urges the ministry to reconsider and adopt other measures such as "controlling inflation, addressing housing issues, adjusting business and self-employed taxation, and establishing a debate on pensions."

Opposition to this reduction in working hours is also evident in key sectors for the province, such as agriculture, tourism, and footwear. The Alicante Young Farmers Association (Asaja) describes the decision as "another obstacle for the agricultural sector," with its president, José Vicente Andreu, noting that the field "suffers from a severe labour shortage."

The leader of Asaja Alicante explains that this reduction in working hours will "increase costs for small and medium-sized farmers, who will have to complete the same tasks in fewer hours," while warning that in the long term, the law will ultimately "raise the prices of fruits and vegetables for consumers due to the costs producers must bear."

In the province, small agricultural operations of citrus, cherry, or olive prevail, requiring "manual harvesting," a task that Andreu insists "cannot be carried out with agricultural machinery due to the terrain's topography and the small size of the farms." Asaja Alicante asserts that "we will particularly suffer the consequences of this measure, which does not reflect the reality of our field."

The measure will not only lead to price increases in agriculture, but the hotel industry in the Valencian Community also warns that reducing working hours "will increase costs and prices" in the sector. This is according to its president, Fede Fuster, who sees this as inevitable. He particularly highlights hotels operating 24/7, which require eight-hour shifts to be productive.

The configuration of these hotel businesses is crucial in this case, as personnel accounts for "40% of the expenses of these labour-intensive companies," expresses Fuster, who, in line with CEV's criticism, argues that such significant measures "are taken outside of collective bargaining, where true social dialogue occurs."

The Spanish Footwear Industries Federation (FICE) agrees with these sectors' stance and has already warned that reducing working hours would lead to a 10% increase in costs, figures deemed "unmanageable" and would ultimately "suffocate the sector's businesses, inevitably resulting in reduced employment."