Mallorca pays the price for Madrid’s promises

Will Mallorca's vibrant tourism fade under new labour laws?

Spanish government is moving ahead with plans to reduce the official working week from 40 to 37.5 hours | Photo: EFE

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If you say to any worker, “I’m going to reduce your working hours but still pay you the same,” without a doubt they’ll respond, “Where do I sign?” Ask the same question to employers, and I’m sure they’ll look at you in utter dismay and ask, “Why?” Most employers are already finding it hard enough to recruit good, qualified staff—and enough of them to cover the hours they need. But the Spanish government is moving ahead with plans to reduce the official working week from 40 to 37.5 hours, without reducing salaries. Implementation is expected towards the end of 2025, and it won’t surprise you to know that the proposal has full support from the unions.

“This proposal is about living better, working less, and being much more productive and economically efficient,” said Labour Minister Yolanda Díaz, who put the idea forward. However, the centre-right Catalan separatist party Junts has already signalled resistance, while the main employers’ lobby, CEOE, argues it will raise Spanish firms’ costs and make them less competitive. If I’m honest, I lean toward the second opinion. This proposal is heavily weighted in favour of employees rather than employers, and it feels like a populist move designed to win votes in the next election.

I can understand it more on the mainland, where industries like manufacturing and construction are more prominent than here in Mallorca. On the island, tourism is by far the dominant sector, accounting for a significant portion of the economy. While specific figures vary, tourism is estimated to contribute between 40% and 75% of Mallorca’s GDP. It’s also the primary driver of employment, with a large percentage of the workforce directly or indirectly involved in tourism-related businesses.
Once again, Mallorca will suffer from a policy that benefits the mainland more than it benefits us.