New rules for bargaining collective labor agreements in Spain

Automatic summary, not yet reviewed

1. The structure of collective bargaining is reorganized: the most representative unions and employer associations can set rules on how agreements of different scopes interact, and the company-level agreement takes priority over the sectoral one on matters such as wages, working hours or vacations.
2. Agreements must include minimum notice periods to terminate them, deadlines to start and finish negotiating a new agreement, and a commitment to dispute resolution procedures. If there is no deal and those procedures are not used, the agreement remains in force.
3. The rules on who may negotiate agreements are updated: groups of companies and companies linked for organizational or production reasons are recognized, union sections may negotiate at company level, and representativity thresholds are set for employers and unions.
4. Both parties must bargain in good faith, the negotiating committee must be formed within one month and talks must start within fifteen days. The maximum bargaining period is eight or fourteen months depending on the previous agreement's duration.
5. The joint committee is strengthened: it resolves questions on applying and interpreting the agreement and must be involved before a collective dispute goes to court or to mediation.
6. Companies facing economic problems may negotiate changes to working conditions and opt out of the sectoral agreement's wage terms, with limits: the opt-out cannot exceed the agreement's duration or, at most, three years. The Council for Labor Relations and Collective Bargaining is also created, replacing the National Advisory Committee on Collective Agreements.

Who it affects

• Workers and companies: Their collective agreements will follow new deadlines for termination and negotiation, and they may agree on internal flexibility measures.
• Unions and employer associations: The rules on who may negotiate agreements and how the negotiating committee is formed change.
• Companies in financial difficulty: They may negotiate a temporary opt-out from the sectoral agreement's wage terms, for a maximum of three years.
• Joint committees: They take on new duties: interpreting the agreement, adapting it while in force and resolving disagreements.
• The State administration: It must create the Council for Labor Relations and Collective Bargaining and review the information tools on collective agreements.

Words worth knowing

Convenio colectivo (collective agreement)

A written deal between worker and employer representatives setting working conditions for a sector or a company.

Comisión paritaria (joint committee)

A body made up of representatives of both sides that interprets and applies the collective agreement.

Flexibilidad interna (internal flexibility)

Negotiated changes to working conditions within a company, such as how working hours are distributed, without resorting to layoffs.

Legitimación (standing to bargain)

The requirements an organization must meet to be allowed to negotiate a collective agreement.

Arbitraje (arbitration)

A way to settle disputes in which a third party issues a decision the parties must accept.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries