On Friday evening, the two main unions in the Balearics - CCOO and UGT - reached agreement with employers from the hospitality industry for a new pay agreement.
Affecting some 150,000 workers in the hotel, bar/restaurant and nightlife sectors, the agreement is for an 8.3% increase over two years - five per cent in 2023 and 3.3% in 2024.
The agreement represents something of a compromise on both sides, who were aware that an agreement was desirable before the Fitur tourism fair in Madrid that starts on January 18.
It is an agreement that seems to be more of a climbdown by the unions than a concession by the employers. The unions had been talking about potential industrial action if demands for ten or as much fifteen per cent in 2023 were not accepted.
The announcement of the agreement came after eight hours of talks at the ministry for the economic model, tourism and employment.