Trade unions organized protests throughout Spain on Thursday, aiming to pressure the government and the business sector into reaching an agreement on reducing working hours, despite resistance from employers worried about increased costs.

"The Spanish economy and companies can easily handle a general reduction in working hours," stated Unai Sordo, leader of the CCCO union, addressing hundreds of protesters outside the headquarters of the CEOE employers' association in Madrid. "The technological advancements in our work and production methods fully support this, allowing for the same pay while enhancing productivity," he added.

Prime Minister Pedro Sanchez's Socialist party and its allies are working to convince businesses to support a plan that would reduce the working week by 2.5 hours from the current 40 hours. Former European Central Bank chief Mario Draghi emphasized in a recent report for the European Commission that the EU must bridge the productivity gap among its member states to compete economically with the United States and China.

To gain employer support, the government has proposed a hiring incentive for small businesses with fewer than 10 employees, designed to offset the reduction in working hours while maintaining service levels. A source close to the negotiations revealed that Madrid could implement the reduction without consensus and plans to do so before the end of 2024. The proposal accounts for the working week on an annual basis, allowing sectors like hospitality, where shift adjustments are challenging, to accumulate hours that can be later compensated with additional holidays.

Spaniards currently work more hours than the European average. According to Eurostat, the average working week in Spain was 36.4 hours in 2023, compared to the EU average of 36.1 hours. Labour Minister Yolanda Diaz argues that reducing working hours will boost productivity, a sector where Spain has historically fallen behind its European peers. However, business owners are concerned that the proposal will result in employees working fewer hours for the same pay.

The effects of similar measures in other countries remain uncertain. France introduced a 35-hour work week in 2000, expecting it to create numerous jobs. However, data indicates an increase in labor costs, making French workers relatively more expensive and companies less competitive.