Tension (also) settles in social dialogue

Madrid"Infeasible". "I see it as difficult". "We are already in the pre-election period". These are some of the reflections that various union and business voices make when asked about the possibility of tripartite agreements for the remainder of the Spanish legislative term. Pedro Sánchez took his first three-way photo in January 2020, after an agreement with the Spanish employers' association CEOE and the majority unions CCOO and UGT to raise the minimum interprofessional wage (SMI) to 950 euros per month. "It has been the fruit of social dialogue and is based on the solidarity concession of the social agents," Sánchez pointed out at the time, thanking the top social leaders – Unai Sordo (CCOO), Pepe Álvarez (UGT), and Antonio Garamendi (CEOE) – for their "willingness to reach an agreement". More than six years later, some see that dialogue, but also that negotiating will, as a mirage. Although there are those who do not lose hope: "Water under the bridge does not turn the mill".

The pending matters that may affect the scope of social dialogue in labor and Social Security matters in the coming months are an increase in the SMI in 2027 (the Spanish government has already ruled out an increase this 2026). Also, the so-called "work absenteeism" and, consequently, the management of sick leave for temporary disability (IT), the European directive on salary transparency (a new meeting is scheduled for this Monday), the contributions of the self-employed, or a new Agreement for Employment and Collective Bargaining (AENC), which implies a bipartite negotiation: between unions and employers, but without the government. Meanwhile, debates such as the reduction of the working day and the time tracking register have been completely shelved. In fact, the Spanish government has taken the direct route regarding the second measure – the Minister of Labor, Yolanda Díaz, promised the unions that she would approve it. In standby have been left issues such as the reinforcement of leave for death and care of a family member.

The rift over the time tracking register

For the employers' association, the issue that generates the most "concern" is that of workplace absenteeism, but it is also the one that has created a "more difficult climate" for dialogue, admits a source close to the CEOE. During this time, there has been a direct clash with the unions, which have labeled some of the employers' statements as "infamous."

However, among employers, resentment grew with the reduction of the working day because they considered that it affected the scope of collective bargaining, that is, between company and workers, but without the government. And it skyrocketed when Yolanda Díaz announced the time tracking system. In fact, despite having undergone some modifications following the recommendations of the Council of State, the CEOE has threatened to challenge the measure in court if it is approved as a regulation modification to avoid it being voted on in Congress. The employers' association justifies this because the reform would affect the Workers' Statute.

It is in this context that a new meeting should take place to address wage transparency. It is scheduled for this coming Monday, but the CEOE has announced that it is suspending all dialogue with the Spanish government until September 16, when the lobbying law is voted on in Congress. Garamendi, but also the unions, rejects that they have to register under this rule because their role is regulated by the Constitution. "We won't even pick up the phone [for the government]," threatened the president of the employers' association this week.

Beyond this blockage, the employers' association points out that contacts have been almost non-existent lately and links it to the fact that there is no legislation underway and that the Spanish government is submerged in facing and managing crises like the one in Ceuta. They also believe this within the union ranks.

Although tripartite agreements were a constant during the first years of the pandemic – the economic context made it almost mandatory – in this second term they have been counted in dribs and drabs. Institutional tension has also moved to social dialogue. The last tripartite agreement, with unions and employers, was to put an end to the harassment of LGBTI people in the workplace.

In bipartite terms, employers also see an agreement with the unions for a new AENC as difficult. They link it, precisely, to the fact that the Ministry of Labor later takes "initiatives", for example, the time registry, which they believe could "blow up" the agreements between them. The president of the CEOE himself, Antonio Garamendi, has said that today there is no "safe space" for negotiation."

Ultimatum from the unions

However, the time registration also generates unrest among the unions, although for the opposite reason. This week, both CCOO and UGT have issued an ultimatum to the Spanish government to approve it. In fact, the general secretary of CCOO, Unai Sordo, has said that they will not be open to agreeing on anything else if they do not fulfill the promise to move it forward in the council of ministers. Despite the heightened tone, from CCOO they believe that "there is room" for the executive to approve pending issues like this one. "If not, it will be the government that blocks social dialogue definitively," they affirm.

The unions also do not want to become another arm of Pedro Sánchez's government, with whom they have agreed on numerous things but have not called any strikes or mobilizations against their policies, despite the social problems that Spain is going through. In fact, their patience is also running out, or at least that is what they have publicly implied in these last few days, in the face of some breaches by the Spanish government of commitments undertaken with them.

Regarding the rest of the folders, they fear that if the employers' association maintains the announced blockade of the law that provides for a registry of interest groups, it will not be possible to advance on anything, although it is assumed that the atmosphere was already "strange" long before.

All in all, once the electoral machinery begins with an eye on different autonomous communities, municipalities, and, when the time comes, the State, everyone takes for granted that everything will become even more complicated. "Such a period conditions things a lot," it is assumed. Positions will not only be more entrenched, but the legislative agenda is expected to be even emptier.