The reduction in working hours agreed between the PSOE and Sumar has made its way through the Aecoc congress, the association of consumer companies that is celebrating its 38th Congress this Wednesday in Zaragoza. The president of the entity, Javier Campo, has rejected the measure, considering that, if applied, it will “burden productivity” in Spain, which is already “mediocre”, as he has described it.
Campo has stressed that the hours worked are the same as in 2019 despite the fact that employment has grown, with 1.1 million more workers, “and this is affecting our productivity.” “Work absenteeism has increased, much of this employment created is public, where on average fewer hours are worked than in the private sector, there is more part-time hiring and in low-skilled services,” he detailed to explain this poor evolution.
Compared to 2014, Spain's productivity has barely increased one point, it remains three points below the pre-pandemic era and is 24% below the eurozone average, he lamented. For this reason, he has insisted that reducing the working day to 37.5 hours per week “will deepen the problem.”
A future reduction in working hours could have a wide impact on the mass consumption sector, which is very labor intensive. Campo, who was a director of Carrefour, recalled the introduction of the 35-hour week in France. “It didn't go well,” he said. Beyond the working day, Aecoc has also pointed out the increase in the minimum wage included in the Government pact as another potential source of “problems.” “It is impossible to compete with low productivity and high labor costs, it will affect the competitiveness of the Spanish economy,” Campo concluded.
The mass consumption sector analyzes its situation and challenges between today and tomorrow, with special attention to the lower volume sales suffered by companies, inflation and changes in consumer habits, who are regulating spending to face the increase in prices, with a transfer to cheaper and white label products, with a record share. These are – the president of Aecoc has highlighted – the main concerns of companies in the sector.
Regarding price increases, the sector expects it to moderate over the next year, especially in food, with a large differential compared to general inflation (10.5% and 3.5% respectively).
