FEHM signs landmark hospitality industry agreement for improved salaries and conditions in Balearic

Cuatrecasas has advised the Hotel Business Federation of Mallorca (FEHM) on the negotiation process of the 16th Collective Bargaining Agreement for the hospitality industry in the Balearic Islands. The agreement was officially sealed on February 15 at the Balearic Government’s headquarters and will be effective from April 2023 to April 2025.

By participating as the majority employer, FEHM played a decisive role in negotiating an agreement of clear strategic value for the economy of the Islands. The agreement reached is pioneering in terms of the regulation of the Spanish hospitality industry due to significant improvements in salaries and working conditions. These improvements will benefit nearly 160,000 workers and include a salary increase of 8.3% over two years. This is a benchmark agreement in the national hospitality industry.

Notably, after weeks of intense negotiations and for the first time in history, the agreement was reached unanimously and signed by all the hospitality employer associations and labor unions in the archipelago. A firm step forward that will serve both to give a strong boost to the companies operating in the industry, and to protect the rights of their employees and create the stability that the industry needs to face the tourist season.

The Cuatrecasas team that provided legal counsel to the employer association consisted of lawyers from the Palma de Mallorca office’s Labor and Employment Practice: Javier Sola, Tatiana Muñoz, Carmen Bardi and Antonio Cárdenas.