Andorra majority rejects PS salary review and workweek study proposals

Parliamentary majority rejects PS proposals on salary updates and shorter workweek study

Andorra's parliamentary majority, comprising Demòcrates and Ciutadans Compromesos, has rejected two labour-related resolutions proposed by the Socialdemòcrata (PS) group during the ongoing Debat d’Orientació Política. The votes came amid debates on protecting workers' purchasing power and addressing labour shortages, with both initiatives failing 16-10.

The first proposal sought to establish a legal mechanism for annual salary reviews to maintain purchasing power, particularly for low- and middle-income earners. PS councillor Pere Baró argued that recent years have seen significant erosion of real wages, with growing numbers of workers earning the minimum wage or similar levels. "We just want those with jobs not to get poorer each year," he said, criticising reliance on minimum wage hikes alone as insufficient for stability or business predictability. He described a recent minimum wage increase announced at the DOP's start as "electoralist," linking it to geopolitical pressures like tensions in the Gulf that drove inflation.

Andorra Endavant leader Carine Montaner backed the measure, noting that rents already adjust with the IPC inflation index and salaries should follow suit. She highlighted prior group support for similar ideas. Concòrdia MP Maria Àngels Aché called it useful amid rising prices.

Government representatives countered that no country mandates universal salary increases by law; such matters belong in collective bargaining agreements, now facilitated by recent labour law reforms. Economy and Labour Minister Conxita Marsol stressed shared concern over purchasing power loss, pointing to minimum wage rises exceeding IPC—45% in one case and 25% in another—bringing it near 60% of the median salary (currently around 55%). She defended a July extraordinary hike as a response to unforeseen inflation, not predictable via "a crystal ball," and cited other supports like rental aid and housing guarantees. Prime Minister Xavier Espot reiterated that only the minimum wage requires statutory adjustment.

The second PS resolution called for a technical and socioeconomic study on reducing the workweek, to assess viability by sector without immediate implementation. Baró framed it as a response to skilled labour shortages in areas like education and healthcare, potentially improving mental health, reducing absenteeism and boosting satisfaction for workers and firms alike.

Montaner supported a sector-specific analysis, citing examples like SAAS workers' disrupted circadian rhythms and AI tools for satisfaction surveys. However, Concòrdia president Cerni Escalé opposed, questioning productivity gains or quality-of-life improvements, and distinguishing it from wage rises.

Majority members argued the measure was too broad for Andorra's service-, retail- and construction-driven economy, where labour shortages persist. Marsol insisted on prior evaluation of productivity and cost impacts before broad debate, noting some sectors like SAAS are already negotiating reductions to 37 weekly hours by 2028 via collective agreements. Meritxell López added it would not attract more workers given current shortages.

These were among 35 resolutions under discussion, with the salary review marking the first debated.