- Spanish banks and unions reached a landmark agreement to raise employee wages by 11% over the next three years, according to a statement from the banking association AEB on July 23.
- This wage increase is a significant development in the Spanish financial sector, reflecting a shift in priorities from job cuts to fair compensation.
OUR TAKE
Spanish banks and unions have reached an agreement to give employees an 11% pay rise over the next three years. While this sounds positive, it follows strikes and protests in March. Consider that major banks like Santander have been raking in substantial profits, with employees demanding fairer wages. Although the deal includes a 4.25% increase this year, it remains modest compared to these profits. Moreover, wages in Spain’s financial sector had been largely stagnant from 2021 to 2023 due to a prior labor agreement. The recent focus on wage issues in protests has significantly shifted the landscape.
–Miurio huang, BTW reporter
What happened
Spanish banks and unions reached a landmark agreement to raise employee wages by 11% over the next three years, according to a statement from the banking association AEB on July 23. This agreement comes on the heels of significant employee unrest and strikes in March, driven by demands for higher pay. Workers had called for increases following record profits reported by major banks like Santander.
Under the new agreement, salaries will rise by 4.25% this year, followed by a 4% increase in 2025, and a final 2.75% hike in 2026. The AEB, which represents many of Spain’s largest banks—including Santander, BBVA, Sabadell, and Bankinter—was involved in negotiating this deal.
Previously, wages in Spain’s financial sector had remained largely stagnant from 2021 to 2023 due to a labor agreement signed during that period. While past protests had typically focused on staff reductions, recent demonstrations have increasingly highlighted wage issues.
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Why it’s important
This wage increase is a significant development in the Spanish financial sector, reflecting a shift in priorities from job cuts to fair compensation. The agreement addresses the growing discontent among bank employees who felt their salaries had not kept pace with the substantial profits of major banking institutions.
The new wage structure, with its graduated increases, aims to provide a more immediate and tangible benefit to workers. It also acknowledges the financial success of banks, ensuring that the gains are shared with employees who contribute to these achievements. By resolving recent strikes and protests, this agreement not only helps to stabilise the sector but also sets a precedent for wage negotiations in other industries facing similar challenges.
The deal also underscores the impact of labor actions in shaping financial agreements and highlights the broader trend of increasing focus on fair compensation in the wake of record corporate profits. As banks adapt to these changes, it will be crucial to monitor how these adjustments affect employee morale and the overall financial stability of the sector.
