Contradictory tendencies in collective bargaining on working time

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In 1998, working time was a major topic of debate among Spain's social partners. However, statistics on 1998's collective bargaining on working hours, published by the Economic and Social Council in summer 1999, reveal no great surprises and a few contradictory tendencies.

The annual report of the Economic and Social Council (Consejo Económico y Social, CES) , published in summer 1999, provides data on collective bargaining in Spain in 1998 ("Economía, trabajo y sociedad. España 1998, memoria sobre la situación socioeconómica y laboral", CES, Madrid (1999)). The reports data on bargaining on working time are examined below.

Average number of working hours stabilises

The average number of working hours laid down in the collective agreements signed in 1998 was 1,768 per year, which was very slightly higher than in 1997 (1,767.9). An analysis of the development of the average number of working hours agreed in the last few years reveals a clear fall in the period until 1993 (1,763.5 hours per year), and an increase from then on. However this increase has been increasingly moderate, and in 1997 and 1998 the number of working hours hardly changed.

In assessing these figures, one must bear in mind that they are based on calculating the average number of working hours by weighting the number of working hours laid down in each agreement by the number of workers covered by the agreement as a percentage of all workers covered by collective bargaining. Therefore, the development of the average number of working hours depends on two factors: the variation in the number of working hours laid down in each agreement; and the variation in the number of workers covered by it.

A detailed analysis of the development of the average number of working hours shows that the increase since 1994 is not due to a greater number of working hours being agreed, but to an increase in the number of workers who are covered by agreements with long working hours. It is therefore an effect of changes in the structure of production and employment that involve a transfer of workers towards coverage by agreements with longer working hours. This is confirmed by the employment statistics: there are more workers covered by sectoral agreements, in which longer working hours are laid down than in company agreements (see below); and there are fewer industrial workers with short working hours and more service sector workers with long working hours.

More clauses on shorter working hours

The number of clauses on shorter working hours continued to increase in collective agreements signed in 1998, and this has proven to be a clear tendency in collective bargaining over the past few years. In 1995, these clauses affected 10% of agreements and 7% of workers. In 1998 they affected 18% of agreements and 17% of workers (around 1.2 million). The figures for the first half of 1999 confirm this tendency, with 22% of agreements and 32% of workers covered (according to information from the CC.OO trade union confederation - "Balance de la negociación colectiva. Se incrementan las cláusulas de empleo y contratación en los convenios", Gaceta sindical, no. 177, July 1999).

However, the reduction in working hours is moderate: 88% of cases involve one to 23 hours per year, with an average decrease of seven hours per year; although there has also been an increase in the number of agreements that reduce working hours by 24-46 hours per year. The figures from CC.OO for the first half of 1999 point in the same direction.

The reduction in working hours in 1998 took place in both sectoral agreements and company agreements. However, the differences in working hours are still great: the working hours laid down in company agreements (1,724.9 hours per year) are considerably lower than the working hours set by sectoral agreements (1,774.3 hours per year); in turn, the working hours agreed in company agreements decrease proportionally with the size of the company (1,715 hours per year in companies with over 500 workers, compared with 1,768 hours in companies with fewer than six workers). Differences in working hours between sectors also continue, but a tendency towards a reduction in these differences is observed.

To conclude, the 35-hour week is still enjoyed by only a minority of workers - 3.4% - and is found mostly among workers in public administration and teaching.

Few clauses on overtime

There are still relatively few clauses on overtime in collective agreements. They were found in 37% of the agreements in 1998 and affected 39% of the workers. Only a minority of these clauses deal with eliminating or reducing overtime, these being found in 9% and 7% of the agreements respectively. It is noteworthy that in 1998 there were fewer of these clauses in company agreements than in the previous year, whereas in sectoral agreements there was an increase only in the number of clauses on reducing overtime below the legal limit. It should also be pointed out that these clauses are of doubtful effectiveness, because they tend to be too general and do not set up specific mechanisms for ensuring their execution. The employment statistics, on the other hand, point to an increase in overtime in the last few years, although in the third quarter of 1998 it seemed that this tendency was beginning to be turned around (ES9907141F).

There has been no great progress in compensation for overtime. Though the Workers' Statute expressly refers the question of remuneration or compensation for overtime to be dealt with in collective agreements, only 35% of agreements regulate this matter. Compensation with time off, rather than pay premia, is common in agreements at national level but not at other levels. Furthermore, the power to choose time off is granted mainly to the employer.

No great changes in flexible working time

In 1998, there were no great changes in the area of flexible working time, at least from a quantitative point of view. Provisions on the annualised calculation of working hours show a similar pattern to the previous year: they appear in 70% of company agreements, 90% of sectoral agreements at national level and around 50% of the remaining agreements. At present, 35% of agreements use exclusively weekly reference periods.

Annualised calculation does not automatically mean that it is possible to distribute working hours irregularly throughout the year. In many cases, the annualised calculation is combined with weekly calculation and a specific agreement on irregular distribution is necessary. This type of clause is found mainly in company agreements: around 20% had clauses on irregular distribution in 1998, a similar figure to that of the previous year.

There are many formulas for distributing working time: in some cases, the agreement establishes working hours and a normal schedule, and provides for changes according to pre-established parameters when certain circumstances arise or at certain times of the year; in other cases, the agreement establishes a "pool of hours" - that is to say a certain number of hours a year that are distributed irregularly, in some cases at the discretion of the company and in others only under certain circumstances. Beyond the provision of information, very few agreements include the participation of workers' representatives in this area. There is also great diversity in the guarantees that this type of clause gives to the workers. Around 20% of company agreements contained provisions in this area, a similar figure to that of the previous year.

Commentary

In 1998, working time was a major subject of debate among the social partners (ES9902297F). The trade unions' demands for shorter working hours and job creation were intensified, and in response the employers demanded greater flexibility. In several autonomous communities, incentives for job creation as a result of measures for reducing and reorganising working time were set up at the initiative of the regional government, the trade unions, and in some cases the local employers' organisations. On occasions this has led to a heated debate with the CEOE employers' confederation (ES9903210N) and the central government (ES9907144N).

However, collective bargaining on working hours in 1998 contained no great surprises and a few contradictory tendencies. In collective agreements there were more clauses on shorter working hours, but the reduction in hours has been moderate and fails to counteract the increasing proportion of workers in sectors and companies with long working hours. There are also difficulties in reducing overtime or compensating it with time off, and there have been no major changes in flexibility, at least at a quantitative level. Everything indicates that greater external stimuli are required in order for collective bargaining to deal thoroughly with reducing and reorganising working time (María Caprile, CIREM Foundation).