Labor unions collectively represent workers’ interests territorially (nationwide and so on) and by industry. Various employers’ associations also exist whether nationally or otherwise.

At company level, personnel are represented by personnel delegates or workers’ committees (depending on the number of employees) that may, or may not, belong to a labor union. The right to elect personnel delegates applies in companies that have between six and ten employees, if all the employees unanimously elect to be represented.At companies with more than ten employees there is an automatic right to elect such representatives.

Furthermore, employees of Communityscale enterprises or Community-scale groups of enterprises are entitled, on prior request, to establish a European workers’ committee or a procedure to inform and consult workers. This right is recognized under Law 10/1997 (amended in some respects by Law 44/1999), on the Rights to Inform or Consult Workers at Communityscale Enterprises and Community-scale Groups of Enterprises.

1. Functions of workers’ committees
The functions of workers’ committees and personnel delegates are the same, and include the following:

– To receive quarterly information on the economic situation, output, sales and labor force variations at the company.

– To be notified of the balance sheet, income statement and annual report of the company, on the same terms as the shareholders.

To issue a report on certain labor issues, such as redundancy procedures and professional training plans of the company, before the employer implements its decision.

– To issue reports on mergers, absorptions or changes in the legal form of the company, if they affect the number of jobs.

– To be informed of certain labor-related matters (standard contracts, penalties for very serious infringements, absenteeism, and so on).

– To monitor compliance with labor regulations.

There are also certain statutory safeguards established regarding the dismissal of, or imposition of penalties on, employee representatives.

2. Collective labor agreements
Collective labor agreements are negotiated between employers or employers’ associations and employee representatives, and are mandatorily binding on the parties. Collective labor agreements have a sectoral scope (governing a certain industry) and a functional scope (they may be negotiated at the State level or at a lower territorial level and at the company level). Collective bargaining has become a decisive factor in the reform of Spanish labor legislation.

Such agreements are generally for one or two years, although they can be extended for longer periods.