Editorial & Advertiser disclosure

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Headlines

Spanish ministers agree to cut legal working week to 37.5 hours

Published by Global Banking and Finance Review

Posted on February 4, 2025

Featured image for article about Headlines

MADRID (Reuters) - Spanish ministers agreed on Tuesday to cut the legal working week to 37.5 hours with no change in salary, forging ahead with one of the coalition government's flagship measures despite opposition from employers' associations.

During its weekly meeting, the cabinet approved the reduction, from 40 hours currently, in an executive decree penned by Labour Minister Yolanda Diaz, who leads the hard-left party Sumar.

"This proposal is about living better, working less and being much more productive and more efficient economically," Diaz told reporters.

The measure still needs to be approved in parliament, where the centre-left government led by Socialist Prime Minister Pedro Sanchez lacks a clear majority and depends on balancing the demands of several smaller parties to pass legislation.

Diaz, who is also deputy prime minister, made the plan to reduce working hours by the end of 2025 central to her party's support for Sanchez's premiership.

But the centre-right Catalan separatist party Junts has already signalled resistance to the proposal, while the main lobby for employers, CEOE, has said it would raise Spanish firms' costs and make them less competitive.

After months of talks between Diaz and unions and employers' representatives, negotiations with CEOE broke down in November after it insisted the shorter week should not be imposed by law but through collective bargaining to suit each company's needs.

"The corporate world is in favour of dialogue, but not in favour of monologue," CEOE chief Antonio Garamendi said on Tuesday.

Diaz has also clashed with Economy Minister Carlos Cuerpo, whom she accused of "siding with employers" after he proposed delaying the change by a year to give small businesses time to adapt.

Spain's central bank and former economy minister have both warned that higher labour costs could fuel inflation and curb job creation.

After the cabinet decision, Cuerpo said companies could resist the change given Spain's strong economic growth, declining inflation and an unemployment rate at a 16-year low.

(Reporting by Inti Landauro; Editing by David Latona, Kirsten Donovan)