This CEO confirmed failure in extraordinary executive committee this Tuesday Rental contract advocated by the government to contain the escalation inflation. Major employers approve a package of advice to guide companies through increases salaries in future years that do not correlate salaries with CPI and reinforces the weight of variables linked to productivity. Organization headed by Antonio Garamendi It also calls for specific “salary moderation” for publicly bound contracts, given the legal impossibility of reviewing contracts in the IPC’s current upside context. Currently, wages are growing 2.4% under the deal, significantly below the 8.4% where inflation moves.
Just last week, unions and employers envisioned the impossibility of closing a salary agreement among themselves that would become one of the main pillars of the big income deal he initiated. Pedro Sanchez at the beginning ukraine war trying to stop the rise in prices. Although the final nail in that coffin was backed by top leaders of the employers’ association this Tuesday. “It is very important to do things right so that our companies and our economy will emerge from the crisis at the same rate as our competitors, not at a disadvantage,” the employers said in a statement.
CEOE says that the best thing for companies in the current context is to transfer some of the risk to employees and “variable pay systems“, prioritizing that future increases are linked to evolution, productivityoutcomes and absenteeism rates, “avoidance of bonuses and the concepts that promote it”.
The employer leadership has left to each sector the salary increases that the business representatives brought to the negotiating table with the unions, depending on their specific conditions. And he advocated “to make an effort” in general. wage control“, without specifying general recommendations. In this sense, the last proposal sent to unions in the final stage of unsuccessful negotiation was an increase of 3.5 percent for this year. A 2.1 percent increase, despite the CEOE referencing employees in its own structure.
Demands by the centers to introduce some form of wage revision clause in contracts to preserve all or some of the purchasing power of workers in the face of current inflationary uncertainty has derailed the negotiations. The CEOE marked this as a red line and was never willing to accept indexation, arguing that it would fuel the inflationary spiral. This spirit is faithfully portrayed in the advice sent to them this Tuesday. “It is recommended to avoid linking wage increases to concepts as volatile as inflation,” they say in the statement.
On the contrary, the indicators that the CEOE believes it is appropriate to link the variables are productivity, employment evolution, GDP behavior, competitiveness guarantee indicator and results or ‘activity’. Unions have historically objected to assuming more weighted variables in wage systems for two reasons. On the one hand, the lack of transparency, which companies criticize for measuring these concepts individually and understand it as arbitrariness in favor of the employer. And on the other hand, the lack of equity this can create in patterns where some employees are better rewarded than others.
The CEOE also encourages companies to implement existing legal mechanisms – thereby saving a significant portion of salary costs – to exit collective agreements if they can justify economic, technical, organizational or production reasons.
Source: Informacion
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