Strategic leap for hospitality industry in Balearic Islands with new collective agreement

Cuatrecasas has advised the Mallorca Hotel Business Federation (FEHM) on negotiating the 17th Collective Agreement for the Hospitality Industry in the Balearic Islands The employer associations FEHIF, AHOME, CAEB Restauración, ABONE, PIME Menorca, PIMEEF, and the labor unions UGT and CCOO also participated in this process. This is the second time Cuatrecasas has provided advice to the FEHM, having previously participated in the negotiation of the collective bargaining agreement for the 2023-2025 period.

The agreement, which covers nearly 180,000 workers, is considered a national benchmark, especially with regard to contractual arrangements and compensation conditions. It stands out as the country’s highest-paid agreement in the hospitality industry, guaranteeing purchasing power above the regional average and linked to the CPI growth rate.

This agreement also represents a strategic advance for a key sector encompassing accommodation, restaurants, and nightlife. It is fully aligned with the Workers Statute and the most recent LGBTI+ regulations, and contributes to modernizing the system of permits, leaves of absence, and work-life balance measures, promoting inclusive environments and strengthening occupational health protection. A Productivity and Absenteeism Observatory has been created to analyze and improve the sector's productivity and reduce absenteeism. The creation of this body represents a significant advance for the hospitality industry in the Balearic Islands, promoting a more efficient and responsible work environment and establishing a model that could be replicated in other sectors and regions of the country.

The Cuatrecasas advisory team was made up of lawyers Javier Sola, Tatiana Muñoz, Carmen Bardi, and Nicolas Angles, from the Labor and Employment Practice. Javier Sola said the following about the transaction: "The 17th Collective Bargaining Agreement for the Hospitality Industry in the Balearic Islands represents a significant step forward in the modernization of labor relations in the sector, as it provides companies with greater flexibility, legal certainty, and tools for the efficient management of their human resources, while ensuring social peace and compliance with the latest legal obligations."

Founded in 1976, the FEHM was a pioneer in tourism associations in Spain. It brings together 871 establishments and 205,000 hotel rooms, making it the most representative accommodation association in the country. Its members are distinguished by the diversity of establishments, both in categories—72% of which are 4 and 5 stars—and typologies, ranging from small- and medium-sized businesses to major international chains such as Meliá Hotels International, Barceló Hotels, the Iberostar Group, and RIU.

The FEHM works to strengthen the competitiveness and sustainability of the Mallorcan hotel sector and defend its common interests.