Crisis in Majorca and Menorca as tourists face closed restaurants - 'Can't be ignored'

Restaurant owners in Majorca, Menorca, Ibiza and Formentera have warned of summer closures after boycotting a pay rise agreement. After months of negotiation, unions and employers representing hotels, restaurant and night-life venues agreed on June 30 to a deal, which has led to the cancellation of strike action in the Balearics.

The "historic" agreement includes a 13.5% pay rise over three years, starting with 6% in 2026. The deal was struck just hours after unions warned they would take to the streets and block off Palma airport in Majorca if talks failed. The 24-hour strikes would have been on July 10, July 18 and 19 and then on July 25 and 31. Unions said they were happy with the pay rises but not everyone shares that view.

The main employers' associations of the restaurant and leisure sector in the Balearic Islands - the Mallorcan Association of Cafeterias, Bars and Restaurants (Restauración Mallorca CAEB), the Menorcan Association of Cafeterias, Bars and Restaurants, the Association of Bars, Restaurants and Cafeterias of Ibiza and Formentera (Pimeef Restauració) and the Balearic Association of Leisure and Entertainment (ABONE) - have expressed their deep disappointment and rejection of the pre-agreement signed on June 30 between the Hotel Business Federation of Mallorca (FEHM) and the UGT union for the XVII Sectoral Collective Agreement of the Hotel and Catering Industry.

They say they refuse to be part of the deal as they cannot afford the pay rises and restaurants would face closure. And they have warned that some solution must be found with urgency before the islands' tourism becomes adversely affected.

The pay agreement, according to the affected employers' associations, was reached behind closed doors and without the presence or participation of fundamental sectors such as restaurants and leisure, which generate most of the employment and contribute significantly to Social Security contributions in the Balearic hotel and catering industry.

The affected sectors have shown their indignation, claiming that "we cannot sign an agreement that we have not been able to debate or negotiate". They added: "We have been excluded from the decisive meeting, which constitutes a serious violation of the principle of good faith in collective bargaining."

During the last six months, these associations have worked intensively, under joint legal advice, with the aim of incorporating into the collective agreement specific and differentiated aspects that reflect the reality of thousands of self-employed and micro-SMEs whose operations are far from that of large hotel accommodation.

The association added: "It is incomprehensible that we are excluded from the decisive meeting, especially after having invested so many hours and efforts to defend the particularities of our sector".

The restaurant and leisure sectors criticise the 13.5% wage increase in three years included in the agreement, saying: "This increase is designed for large hotels with economies of scale and significant profits, but it is unsustainable for the small restaurant and leisure businessman, who works with very tight margins and different economic conditions.

"Our aspiration is to have our own negotiation area where our singularities are clearly reflected, either through a specific agreement or through an annex annexed to the general agreement. We are the second most productive and representative sector in the Balearic Islands and our economic and labour reality cannot be ignored."

This outright rejection leaves open a stage of uncertainty in the labour relations of the Balearic hospitality industry, demanding urgent actions to solve the situation before it has a negative impact in the middle of the tourist season.

PIMEM-Restauració - an association outside the negotiating table - had already denounced hours earlier that the agreement "leaves the small restaurant businessman off the map.

President, César Amable, said hoteliers "have scale, volume, anticipation, and margins to play with, while small restaurateurs are much tighter. If wages rise by 6% this year, the difference is not ideological: it is one of survival".