The project is to be tested for two years by small and medium-sized companies. The aim is to produce labor reforms that can “generate an increase in productivity that offsets wage costs”, according to the country’s labor market ministry.
The companies interested in participating in the project undertake to reduce the number of working hours by at least ten percent for at least a quarter of the staff.
In return, the companies receive government support designed to compensate for the impact on production and for administrative costs that the project entails.
Several companies have already tested shortened working weeks
Once the effects have been assessed, the government must decide whether the system should cover the entire economy, according to the ministry.
Several major Spanish companies – including telecoms giant Telefonica and fashion group Desigual – have in recent years tested or in some cases adopted a four-day week. Within the industry, however, the tests have been few and most have led to a drop in wages.
The issue has proven sensitive with unions bracing against managers who believe the measure could be difficult to implement.