Unesid: Workweek reduction would undermine Spanish steel sector
Spain’s steel industry warns that a proposed cut to the national workweek could severely undermine production, raise costs and threaten thousands of jobs, Kallanish notes.
The proposed legislation would shorten the working week from 40 to 37.5 hours. Such a change could have “devastating and irreversible” consequences for the steel industry, according to the steelmakers’ association Unesid. If passed, the law would increase labour costs and reduce operational flexibility, especially in energy-intensive sectors such as steelmaking. It could put thousands of high-quality jobs at risk and force production cuts and shift reductions, according to Unesid’s director of organisation and human resources, Gema Palazón.
She notes that in the current context of economic uncertainty and industrial weakness in Europe, which has prompted the EU to rethink its production model, the measure threatens to further undermine the Spanish steel industry. The sector is already under pressure from international competition and the costly demands of decarbonisation and industrial transformation.
“If this law is approved, the consequences could be devastating and irreversible for the steel industry, putting thousands of stable, high-quality jobs at risk,” Palazón comments.
Some supporters argue that large companies will remain unaffected. However, the Unesid executive stresses that reduced working hours will directly impact the operational flexibility of steel plants.
“Cutting working hours will inevitably lead to adjustments in production activity and employment. If production must align with the shorter workweek, we will see reduced output, fewer shifts, and plant shutdowns,” Palazón explains.
This would result in a lower domestic supply of essential products like steel, whose production continues to decline despite a 6.5% increase in consumption last year. To meet demand, Spain would have to increase imports, negatively affecting GDP and the national economy.
“This could mean the end of the steel industry in Spain,” Palazón concludes.
Todor Kirkov Bulgaria
