Few deals and low pay raiseswell below inflation. This is the photo drawn by the Department of Labor with data updated this Tuesday. evolution of collective bargaining in spain. By April, wages agreed between employers and unions had risen by just a few percent more than a month ago, and significantly, an average of 2.4%. This is far from the 8.4% recorded by CPI in the same month. The update of this data coincides with the CEOE’s extraordinary steering committee; on this committee, employers will confirm that it is each of their sectors that decides how much wages should increase, and send them an instruction. 3.5% overall recommendation for this exercise.
The current inflationary spiral is feeding into workers’ pockets. Collective bargaining salary statistics since April 2021 show lower increases than those recorded by the CPI. In other words, the new working conditions specification signed by employers’ associations and unions for one year, on average, loss of purchasing power for workers. In fact, only two out of 10 workers covered by a deal signed this year posted increases above core inflation, i.e. subtracting the direct impact of energy from the CPI.
The bosses of the bosses and unions were unable to reach a wage agreement that would guide collective bargaining for the next three years. At least this year they have concluded negotiations and this lack of common reference in signing new agreements is noticeable. This is stranded with a significantly lower refresh volume than in the years prior to the pandemic. There are 5.3 million employees under a collective agreement currently in effectIn 2019, when that figure exceeds 11 million workers. According to CCOO data, a third of active workers in Catalonia are waiting for their collective agreement to be renewed and thus accumulate a year or two on frozen wages.
CEOE recommends 3.5%
In the absence of a common framework agreement between employers and unions, the CEOE held an extraordinary meeting with the board this Tuesday at noon to approve a package of recommendations for companies on how wages should evolve. El Periódico announced last week that the CEOE leadership will pass on the guidelines to its partners. free rein to each industry to make their own decisions. In other words, each region or sector decides on the increase proposals based on the business margins it has and the relationship of the forces with the unions.
As a general framework and non-binding, the CEOE will propose a 3.5% increase for this year in line with the latest proposal submitted by Antonio Garamendi’s team to the unions. In the end, although agreement with CCOO and UGT is not possible, since the power plants put generalization of red line salary review items to protect itself from the uncertain evolution of the CPI. Given the increased labor costs this promises, it’s something employers flatly deny.