Spain: Balearic Islands’ hotel sector breaks with trend of wage moderation with a 17% pay rise spread over four years

The Federación Empresarial Hotelera de Mallorca, a hotels federation on the Spanish island, reached a deal on quality employment in the hotel sector with the CCOO and UGT trade unions on 28 September. The agreement includes annual pay rises of 5% in 2018 and 2019, and rises of 3.5% in 2020 and 2021. This unprecedented move, which will impact 137,000 workers in the sector, is of great significance as it regards the main economic engine in one of Spain’s most dynamic regions. It marks curtails a cycle of shrinking workforces and constitutes a reversal of the policy on wages. The move is also in keeping with growth in the tourism sector, which has posted record performance over recent years. The agreement includes new measures to counter outsourcing and could serve as a reference point for the renegotiation of other agreements in the hotel sector, both on a regional and provincial scale.
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Pay rises and guarantees for outsourced staff. Under the deal, the conditions of the agreement will be extended to workers employed by sub-contractors, meaning employees of service providers operating in the hotel sector should enjoy, at the very least, the same pay and working conditions specified in the collective agreement. During the last round of negotiations, the unions obtained an agreement preventing pay practices which undercut those in the sector. The new agreement bolsters the protec

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