Spain hikes state subsidies to major unions as membership hits historic low
State subsidies for Spain's two largest unions have risen to €32 million, almost four times the amount under the previous government, while union density has fallen to a historic low.
Under Prime Minister Pedro Sánchez, direct state subsidies to Spain's two principal trade-union federations, the General Workers' Union (UGT) and the Workers' Commissions (CCOO), have surged to €32 million, nearly quadrupling the €8.8 million allocated by the previous Rajoy government. The Ministry of Labour, headed by Yolanda Díaz, raised the grant to €13.88 million in 2021, kept it at €17 million through 2024, and set it at €32 million for 2025 and 2026.
Between 2018 and 2025, total public spending to the unions and their branches exceeded €569 million, with overall funding rising 34 percent to €93.7 million in 2025. The unions also enjoy free occupancy of 58 state-owned properties covering more than 22,800 square metres, valued at over €200 million, with the state covering at least €700,000 in annual property taxes. Despite this financial support, OECD figures indicate union density fell to 12.5 percent in 2023, far below the EU average.
The federations have organized a 24-hour strike on November 11 to protest soaring housing costs and stagnant wages, a protest backed by smaller labour and tenant groups but opposed by several other federations and the employers' confederation CEOE. CCOO general secretary Unai Sordo said the public money represents less than 10 percent of the federation's budget.
Why it matters
The story highlights growing public spending on unions despite declining membership, raising questions about fiscal priorities and political independence.
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