How does the lack of salary increase agreement between employers and unions in 2022 affect you?

Does it mean wages won’t go up without a deal? No, if they do, it means they will do it sporadically. What does it cover? More strikes, inequality between economic sectors and loss of purchasing power These are some of the highlights from the conflict in social dialogue that different economists consult.

More strikes and clashes

“The most immediate result is that the number of strikes will increase,” warns Nieves Rabasso, workers’ spokesman for the Col·legi d’Economistes de Catalunya. The unions have already warned in their May 1 presentation: ‘if there is no deal, we will highlight every new deal negotiation‘. The rise in the CPI has been a pretty cross-sectional breeding ground for months of discontent, given the cross-sectional rise in prices of electricity and essential goods. And this comes after a pandemic that has caused the renewal of many deals to be delayed until better health.

Such conflicts have already erupted in certain industries or companies, such as in metal in Barcelona or in buses in Lleida or in cleaning in Barcelona, ​​Hospitalet or Cerdanyola; among others. And they promise to multiply in the next few months. Especially before the summer season, when the deals are traditionally closed at that time and the centers want to tighten the negotiations. Other dates that seem complicated will be in the fall, in a final attempt before the end of the year to close deals that couldn’t be closed before.

inequality between sectors

“Lack of a government agreement leads to great variability across sectors“, warns EsadeEcPol Carlos Victoria, economist and researcher. union workers struggling to get pay raises, conflict does them more harm. Well, in industries where unions have greater organizational capacity, they will be able to get more raises from companies, and where they can’t, workers will have to succumb to a greater loss of purchasing power.

The union organizing variable will be keybut also business margins. Where there is less reliance on energy or better evolution of company accounts, workers will have more room to charge better wages. And vice versa. “The luck of labor reform that made the agreements ultra-active, because the absence of an AENC could create a general collective bargaining blockade. Although issues such as equality arrangements or remote work would not be included during the blockade,” the Col·legi d’Economistes insists The worker member of Catalunya confirms Nieves Rabasso.

Longer negotiations and loss of purchasing power

The absence of a common reference will inevitably hinder the sector-by-sector, firm-to-firm negotiations. With or without agreement, with or without tension until the strike, the absence of a common guide will prolong negotiations. This will be a problem for workers as they will spend more time freezing their wages and waiting for their future updates.. This delay will also be a problem for companies in the medium term. In the short term, they will then have to pay off the overdue debts as they will avoid getting pay raises while negotiating, which can put stress on their accounts at the end of the year. “It can create a lack of expectation that makes it difficult for companies to plan,” says economist EsadeEcPol.

economic growth

The increase in strikes and low wage increases could be a hindrance to the country’s economic growth. “In a difficult time when people are waiting for social agents to reach agreement, failing to do so does not contribute to building trust,” Rabassó says. “In a similar context to the current high uncertainty, it’s an additional factor,” says Victoria. Lower wages mean less ability to consume on behalf of workers/consumers, this can narrow the demand and then reduce the companies’ offer. Additionally, a cycle of strikes threatens to bring production to a standstill, increase the number of hours lost and stifle economic activity.