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Wednesday, Mar 19, 2025

Public Sector Workers Mobilize Amidst Unpaid Wage Increases in Spain

Public Sector Workers Mobilize Amidst Unpaid Wage Increases in Spain

Protests arise as unions demand overdue payments and salary increases above inflation from the government.
As the first quarter of 2025 approaches its end, public sector workers in Spain have initiated protests against the government for failing to disburse a variable component of the wage increase owed from 2024 and for not convening negotiations regarding future salary increases and working conditions.

This lack of action from the Minister of Public Administration, Óscar López, has prompted unions to launch a calendar of mobilizations across the country.

The first union to act was CSIF, which announced a protest planned for Wednesday outside the Ministry of Finance.

CSIF indicated that it would organize more demonstrations in the coming weeks in front of Government Delegations and Sub-delegations throughout Spain.

Similarly, CCOO has initiated a call for protests in response to the government's reluctance to address these concerns urgently.

CCOO is set to announce its own protest schedule shortly.

In contrast, UGT remains cautiously optimistic, offering the minister one last chance to remedy the situation.

Isabel Araque, the Secretary of Public Services Union Action, stated that discussions must first take place before any mobilization.

She emphasized the need to understand the government's proposals thoroughly before deciding on further actions, indicating a willingness to escalate if necessary.

Araque acknowledged the positive aspects of the last framework agreement signed with UGT in 2022, which expired in December 2024. However, she is demanding that the government pay the outstanding additional 0.5% wage increase, which is linked to inflation adjustments.

The totality of public sector wages has risen by approximately 10% over the period, costing more than €13 billion.

The extra 0.5%, which should be retroactively paid from January and consolidated into paychecks, represents an additional €700 million, as stated by UGT.

Unions question why the government has yet to activate this payment, which was already budgeted during the 2024 wage increase approval.

They also express confusion as to why the Ministry of Public Administration has not yet convened discussions for a new framework agreement, leaving public employees with frozen salaries and uncertain pay increases for the current year.

López's department has not provided a comprehensive response but has noted ongoing communication with union representatives.

Since the end of last summer, López has faced a crisis that remains unresolved, with speculation that he aims to address this before tackling salary increases.

A key issue is the pending renewal of Muface, which is awaiting final approval from insurers Adeslas and Asisa, the only companies that submitted bids for the tender process.

To meet the demands of private health companies and avoid disbanding healthcare for over one million public workers, the minister has increased the mutual fund budget by 41.2%, raising it to €4.808 billion.

With no public budget set for 2025 yet, the allocation for improved salaries for public employees remains uncertain.

Unions have escalated their demands, with UGT indicating that they plan to negotiate a multi-year agreement that includes salary increases exceeding inflation to recover purchasing power.

Although Araque did not specify exact figures for wage increases, she suggested a return to the previous agreement structure, which included fixed and variable components tied to inflation and GDP growth.

Paco Casado, from UGT's Federal Technical Cabinet, highlighted that in a context of economic growth surpassing EU averages, public workers expect to see financial benefits reflected in their paychecks, asserting that they do not wish to be privileged compared to other sectors but neither to bear the brunt of fiscal challenges.

Amidst anticipated increases in defense spending, UGT hopes that the government’s social agenda remains a priority amid potential militaristic rhetoric affecting budget allocations.

In the upcoming negotiations for the new multi-year agreement, UGT will also demand greater control over temporary contracts, with a view to holding public administration human resource managers accountable.
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