Mallorcan Businesses Challenge Labour Hour Reduction

The proposed hourly reduction of work time to 37.5 hours per week has been strongly criticised by the business community in Mallorca.

On the Balearic Islands, responses are being heard to the recent proposal by the PSOE and Sumar to cut the working week to 37.5 hours starting in 2025.

The Federation of Small and Medium Enterprises of Mallorca (Pimem) has strongly criticised this decision, calling it ‘erratic and crazy’ for the islands’ business landscape.

Local Business Concerns

Pimem expressed in a press release that the plan by Pedro Sanchez and Yolanda Diaz shows ‘a great lack of knowledge’ about the operations of SMEs in the archipelago, especially in Mallorca. The group emphasised that Mallorca’s economic rhythm is largely influenced by its peak season.

For small and medium businesses, this could mean increased hiring to fill the gaps created by the reduced hours. Pimem highlighted the importance of considering productivity when discussing potential changes in salary or working hours.

Spain’s Productivity Issues

Pointing out that productivity is a crucial factor in determining labour policies, Pimem noted that Spain is often cited for its low productivity relative to other EU nations. Due to the unique demands of their market, businesses sometimes have to operate beyond the regular calendar days.

The association also touched upon the challenges faced by the industrial sector in Mallorca, indicating that any move to decrease working hours is ill-timed.

It’s not just Pimem voicing concerns. The CEOE, a prominent Spanish business organisation, has criticised the agreement between the PSOE and Sumar. They believe it will disrupt the social dialogue and could potentially harm Spain’s overall productivity.

The CEOE further remarked that the 2025 measure ‘represents a clear interference in social dialogue, since this is an issue that should be the subject of negotiation between companies and unions.’