Collective Bargaining in Spain

What Is Collective Bargaining?

Collective bargaining (negociación colectiva) is the mechanism by which worker representatives (trade unions) and employer associations negotiate the employment conditions that will govern their collective relationship. The outcome — a convenio colectivo (collective agreement) — has the force of law within its defined scope, binding all employers and workers regardless of union membership.

Spain’s collective bargaining system is regulated by Title III of the Estatuto de los Trabajadores (Articles 82–92) and is characterised by:

• High coverage (approximately 70–75% of Spanish workers are covered by a collective agreement)
• Erga omnes effect (agreements bind all, not just unionised parties)
• A two-level structure (sector agreements + company agreements)
• Strong procedural rights for both parties

Who Can Bargain?

Trade Union Side

To participate in sector-level collective bargaining, a trade union must be most representative (sindicato más representativo):

• At national level: CCOO (Comisiones Obreras) and UGT (Unión General de Trabajadores) — both qualify automatically under Ley Orgánica de Libertad Sindical (LOLS).
• At autonomous community level: the equivalent regional confederations (e.g., ELA-STV in the Basque Country, USO in specific sectors).
• At sector level: unions with at least 10% of works council delegates in the sector.

For company-level bargaining:

• Works council (comité de empresa)
• Trade union delegates (delegados sindicales)
• Worker delegates (delegados de personal, in companies of 10–50 workers)

Employer Side

• At sector level: employer associations with 10%+ of companies in the sector or representing 10%+ of the affected workforce.
• At company level: the company’s management or designated representatives.

The Bargaining Process

Initiating Negotiations

Either party may request the opening of negotiations in writing. The other party has a legal duty to negotiate (deber de negociar) in good faith — not a duty to agree, but a duty to engage and respond. Refusing to negotiate without justification is a breach of this duty and may give rise to legal proceedings.

Once the request is made, negotiations must open within 30 days (unless the applicable existing agreement specifies a different timeline).

Negotiating Commission (Mesa Negociadora)

A joint negotiating commission is formed, with:

• Company/association representatives (up to a negotiated maximum — typically 15 per side at sector level, fewer at company level)
• Both sides may be accompanied by external advisers (lawyers, economists), though advisers may not vote

The commission meets, exchanges proposals, and works toward agreement. Minutes (actas) of every session must be kept.

Duration of Negotiations

There is no statutory maximum negotiation period. In practice, sector agreement renewals often take 6–24 months or longer. The existing agreement remains in force during negotiations (ultraactividad — see below).

Reaching Agreement

An agreement requires majority support from each side of the negotiating commission. Once signed, it must be:

1. Filed with the relevant labour authority (Ministry of Labour for national agreements; autonomous community authority for regional ones)
2. Published in the relevant Official Gazette (BOE for national, DOGC/BOPV/etc. for regional)
3. Registered in REGCON (the collective agreements registry)

The 2021 Labour Reform’s Impact on Collective Bargaining

The 2021 labour reform (RDL 32/2021) significantly altered the balance between sector and company-level agreements:

Restoration of Sector Agreement Primacy on Wages

The 2012 reform had allowed company-level agreements to set wages below sector agreement levels. The 2021 reform reversed this: company agreements may not set wages below the sector agreement minimum for any category. The sector wage floor is now protected.

Ultraactividad (Survival of Expired Agreements)

The 2012 reform had introduced a 1-year cap on ultraactividad — if a new agreement was not reached within 1 year of the old one expiring, the agreement ceased to apply. The 2021 reform eliminated this time limit: expired agreements now remain in force until a new agreement is signed, unless the parties expressly agree to a different rule.

This significantly strengthens the trade union position in negotiations — employers no longer have the threat of the agreement expiring as a negotiating lever.

Forced Mediation and Arbitration

Where negotiations deadlock for more than 6 months, either party may request mediation or arbitration. The SIMA (Servicio Interconfederal de Mediación y Arbitraje) handles these at national level; autonomous communities have their own equivalent services (CMAC, TAMIB, etc.).

Inapplication (Descuelgue)

A company may apply to inapply specific conditions of the sector agreement — most commonly wages — through a negotiated descuelgue mechanism. This allows companies facing genuine economic difficulty to temporarily apply conditions different from the sector agreement.

Requirements:

• Negotiation and agreement with the works council
• If no agreement: voluntary arbitration, or submission to the CCNCC (National Collective Bargaining Committee) for binding resolution
• Notification to SEPE and ITSS
• Temporary in nature — the company must return to full compliance when the justification ends

The 2021 reform tightened the descuelgue procedure, making it harder for companies to escape sector wage floors without genuine justification.

Works Councils and Union Delegates

Works Council (Comité de Empresa)

Companies with 50+ workers must elect a works council. The council has consultative, information, and negotiation rights:

• Right to be informed in advance of major business decisions (workforce changes, ERE/ERTE, economic situation)
• Right to negotiate company-level collective agreements
• Right to issue a binding opinion before mass dismissals

Council members have special protection against dismissal and cannot be reassigned for reasons related to their representation functions.

Union Delegates (Delegados Sindicales)

Trade unions with a presence on the works council may appoint union delegates in companies with 250+ workers. Delegates have similar information and negotiation rights and the same dismissal protection.

Collective Bargaining at Group Level

Corporate groups in Spain increasingly negotiate group-level collective agreements covering multiple companies in the group. This requires a joint negotiating commission representing all companies in the group. The 2021 reform simplified the legal framework for group agreements.

Frequently Asked Questions

Can a company refuse to negotiate a company-level agreement? The legal duty to negotiate applies when representatives request opening negotiations. Outright refusal is a labour infraction. However, the company may negotiate and ultimately not reach an agreement — there is no obligation to sign if the parties do not converge.

What happens if a collective agreement expires and no renewal is reached? Since the 2021 reform, the existing agreement remains in force (ultraactividad) until a new one is signed. Workers’ conditions do not change during this period. Only if both parties expressly agree to limit ultraactividad can the agreement expire.

Are multinational companies subject to Spanish collective bargaining? Yes. Foreign companies operating in Spain — regardless of their parent’s home country — must apply the relevant Spanish sector or company collective agreement to their Spanish employees. International group-level agreements do not substitute Spanish statutory requirements.

Can individual workers opt out of the collective agreement? No. Workers cannot individually renounce rights established by a collective agreement. The erga omnes effect means the agreement applies automatically. Individual contracts may provide more favourable conditions but cannot provide less.

What role do collective agreements play in an ERE or ERTE? The applicable collective agreement defines the context and minimum standards against which ERE and ERTE negotiations are conducted. Many agreements include specific provisions on social plans, severance levels, early retirement criteria, and ERTE activation thresholds. These provisions form the floor for restructuring negotiations.