The Government will do its best to ensure that a three-year income agreement is possible. This will allow for a moderate growth in wages and margins. It does not allow it to be used until there is a wage agreement between employers and unions. This will make it unlikely that it will see the light of the day, even if it was the best case. Maria Jesus Montero, Minister of Finance and Public Function hinted at this after the Executive met with social agents for the second time to discuss a complex debate. He asked for “discretion”, prudence and time.
Employers and unions criticized Moncloa for not presenting a proposal to promote an Income Pact. Montero also avoided discussing specific measures and even refused to answer whether they plan to include pensions or civil servants’ salaries. However, they expressed their willingness to “contribute their skills and the issues transcendental” to ensure that the agreement goes ahead.
He did however make it clear that there would be no rent agreement if the unions and employers didn’t reach a new salary negotiations agreement. This is something that has been ruled out for now. It is essential that an agreement between employers and unions be reached. He pointed out that once that element is clear, then we will be able to add other questions so it flows.
This complicates an agreement that President Pedro Sanchez had announced only a few days ago. The CEOE and workers’ organizations are still firmly in control of negotiations for a salary rise. The employers flatly refuse to accept the UGT/CCOO guarantee clauses that are required by them to protect wages from rising prices. This is the great stumblingblock. Antonio Garamendi (the president of the employer’s association) ruled it out again on Thursday. He said that the problem with inflation is that it becomes structural rather than conjunctural. He said, “In no instance are we saying that wages shouldn’t be raised. Of course, we will see how, but it must be done in such a way that it is not indexing. Putting that clause that I do not think is beneficial.” Garamendi emphasized that an income agreement is not to be confused with an agreement. He stressed that it was “an obligation of all society, beginning with the Government and ending with the political parties.”
Pepe Alvarez, general secretary of UGT, stated that there would not be another meeting until after summer vacations. He also warned that income agreements will not be reached if wage guarantee clauses tied to the CPI are not included. And if the Government doesn’t put “on the table”, how will it control business profits. He defended that companies are shifting costs to the products or services they sell, and that no one can claim that workers don’t transfer the cost to living to wages or to the increase of pensions.
They also believe that the agreement is necessary and must be done jointly. Juan Bravo, the PP Secretary of Economy, requested that the Executive contribute to the income agreement with a portion of the 15,000,000,000 they collected this year through taxes.
Still, there are agreements being signed. Lidl announced Thursday that it would raise its salary by 7% for its 15,500 employees. Generali will also give 300 euros to its employees to offset inflation. Adecco’s study reveals that wages have declined by more than three percentage points since 2008, even though they are higher.
