Subsidies proposed for companies that introduce 35-hour week

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The regional government of Andalusia in Spain published a draft decree in September 1998 on subsidising companies that introduce a 35-hour working week. The proposal is aimed at subsidising both the social security costs of new jobs created generated by the scheme and feasibility studies on hours cuts.

At the beginning of September 1998, the regional government (Junta) of Andalusia submitted a draft decree on shorter working hours to the trade unions and employers' organisations. It aims to establish a system of incentives in the private sector by means of subsidies to companies that reduce working hours and at the same time create new jobs. These new jobs will enjoy subsidised social security contributions. The Junta will also finance half the cost of feasibility studies on shorter working hours.

The Junta of Andalusia intends to introduce the 35-hour working week for its own 250,000 employees. To this end, it has already commissioned a study to determine the effect of this measure on job creation in the regional ministries of health, education, labour and industry, interior and justice.

The Autonomous Community of Madrid is also discussing the introduction of the 35-hour week. At the moment, its 30,000 employees and civil servants work 36.5 hours a week, as laid down by collective agreement. However, the discussions broke down at the end of July. The differences lay in the fact that the Community agreed to create only 400 new jobs, which would involve an additional cost of PTA 1.4 billion to its budgets. The unions had demanded the creation of 2,000 new jobs. The Madrid employers's body, CEIM, was critical, especially of the idea of transferring these initiatives to the private sector. It also feels that the negotiations should be held at national level between the central employers' organisation (CEOE) and union confederations (CC.OO and UGT).