Alicante employees losing purchasing power for the second year in a row and they do this by more than a significant amount, which will force many families to adjust their budgets. With the end of the quarantine and the bottlenecks in the supply of many materials, the prices started to skyrocket, Inflation has already risen by more than 12% While the rise continues throughout the province average agreed in collective agreements add just one of these two exercises 4.7%. more than seven points Loss of purchasing power of approximately 1,300 Euros per year Taking into account the latest data from the Tax Office, this shows the average declared wage in the region as 17,649 euros per employee.
Although ERTE eliminated the real impact in the pockets of many workers, initial bets on inflation were caused after the small relative improvement in 2020, when a 1.67% nominal improvement in salaries was added to a slightly negative CPI. 2021 will close with the first negative balance. Then, according to the records of the Ministry of Labor and Social Economy, annual average inflation was 3.4%, while negotiated salaries rose only 1.32%. A difference that already represents more of a first blow 350 Euros per employee.
However, the worst was yet to come. It was a result of Russian invasion of UkraineThis triggered fuel and electricity prices. Despite the measures taken by the government, the inter-year rate of CPI in December was 5.7%, but annual average inflation in the province was 8.7%. Although salaries increased more than in 2021, they did not increase at the same rate and remained at 3.41%. This was above the national average of 2.78% wage increase agreed between employers and unions, but still too low to compensate for price increases.
Conclusion Another 933 Euros lost purchasing power added to the previous year’s 350. So it’s as if the wages of every worker in the state were cut by around 1,300 euros (1,283 euros to be exact).
Although each suggests a different way of dealing with it, it’s a reality that everyone acknowledges their concerns. “IWorkers cannot withstand any further decline in purchasing power and even less in one province salaries are too tight and most of the workers are paid very low wages”, notes l’Alacantí and the UGT general secretary in the Navy, yaissel sanchez also enables many companies to seize the opportunity to increase their margins.
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Likewise, the head of CC OO at l’Alacantí-les Marines, paco garcia, remember that a good portion of economic activity depends on domestic consumption, therefore, this loss of purchasing power could lead to an even greater slowdown in the economy. García sympathizes with employers’ demands for wage moderation, but insists that contracts should be signed to include:revision provisions to regain lost ground at the end of the agreed period, for example, as stipulated in the shoe agreement just signed. “The government and the EU are spending money to help companies and lower prices that are starting to pay off. The logical thing is that once the situation returns to normal, salaries will catch up,” he says.
Some thoughts that CEV employers do not share, considering that “it is impossible for wages to increase at the same rate as inflation.” “Deals are negotiated and salaries are increased, but these are increases cannot jeopardize the viability of companies. “Maintaining employment is a priority for us, so we advocate moderate growth to support economic growth and job creation.” Joaquin Perezwhich denies companies are increasing their margins.
The new war: Inter-professional Minimum Wage
While conflicts continue over many contracts not being agreed, the main contention between employers and unions now centers on the Interprofessional Minimum Wage (SMI). And not just because of the number of workers directly affected – which will be a minority – but because of the pulling power this indicator often has as a guide for the rest of the negotiations.
In this context, experts summoned by the Government proposed an increase of 4.6% to 8.2%, equivalent to the range of 1,046 to 1,082 euros per month for the fourteen payments. CC OO is begging for the highest of these numbers and UGT believes it should be increased directly to 1,100 Euros. Both unions are emphasizing the beneficial effects of recent increases, which, they point out, have contributed to the improvement of thousands of wage earners, far from slowing employment as some institutions have predicted.
However, the CEOE wants to limit this increase to just 4%. It’s a recommendation that its president, Antonio Garamendi, reiterated this Monday, who claims to also take into account the specific situation of industries.
Source: Informacion
James Sean is a writer for “Social Bites”. He covers a wide range of topics, bringing the latest news and developments to his readers. With a keen sense of what’s important and a passion for writing, James delivers unique and insightful articles that keep his readers informed and engaged.