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Financial Participation

Spanish trade unions generally take a critical attitude towards employee financial participation schemes. In individual cases, they are however accepted, insofar as the participation is on top of normal wages and no wage components are substituted by the participation.

Though the social partners are signatories to the 1994 law designed to support flexible financial participation schemes, both parties ignored it in the ensuing bargaining processes. They still do not seem to be very interested in discussing employees’ financial participation schemes.

 

The trade unions prefer real wage increases and are critical of new remuneration forms such as long-term incentive plans. In addition, they are reluctant to accept participation schemes without more co-determination. Their negative approach towards flexible remuneration models is rooted in their collective bargaining tradition.

 

The Spanish Employers’ Association is also reluctant with regard to long-term incentive plans. Additionally, some employers’ associations believe that employee share ownership schemes can be a solution for companies in difficulties.

Wilke, Maack and Partner (2014) Country reports on Financial Participation in Europe. Prepared for www.worker-participation.eu. Reports first published in 2007 and fully updated in 2014.