Employment relations and political marketing: «Impacts market unity» | El Mundo

El Mundo publishes an article about the change in the priority of collective agreements in Spain. 

This change, which favors regional agreements over state ones, creates a space for the negotiation of certain issues previously vetoed for regional agreements, such as salary, shifts, or minimum working hours. These conditions will be adjustable as long as they are better than those regulated in the state agreement.
However, due to the suddenness of this change, it generates a climate of uncertainty and instability, as it represents a rupture in market unity. Furthermore, it could lead to legal uncertainty because, as the agreements are renewed, companies could find themselves facing different conditions depending on their location.
Lourdes Escassi, employment of counsel at Gómez Acebo & Pombo, explains: “The priority of the regional and provincial collective agreement over the state one generates concern by creating a double dilemma for companies. On one hand, it encourages collective bargaining to be adapted to the reality of each territory; on the other hand, the impact of this priority on market unity in Spain may penalize companies with increased labor costs depending on where they decide to establish their operations.”

Read full article

View document