CCOO proposes deal to CEOE on how to protect purchasing power of wages

Aimed by a three-year salary agreement, AENC is proposed as the cornerstone of the income agreement on the moderation of salary and profit margins that the Government demands from social institutions. From the CCOO’s point of view, this income agreement also favors sectors in need of a similar increase in SMI to 2022 inflation, an improvement in unemployment benefits, assistance in the form of direct payments to the most vulnerable families, and temporary employment reduction through the impact of energy prices of the new RED postponing mechanism. activation.

Price spiral controversy

“In the face of those who accuse us of proposing an inflationary salary increase, we say that the way to reach a consensus on a salary hike without triggering an inflation spiral is to agree on salary hikes between 3.5-5 percent in 2022, 2023 and 2024. Sordo, 4.5 percent and 4.5 percent. most importantly, it includes a salary guarantee clause to gradually restore purchasing power.” Depending on the agreed wages for each of the three years, steps can then be negotiated with the employer to add additional increases equivalent to the development of inflation, which, according to the union proposal, ensures that wages do not lose their purchasing power. “In two years and five months (time to the end of 2024) inflation will slow down, companies will be able to increase their surpluses and compensate workers, and the price spiral will be averted.” Sordo summed up to defend the proposal that the unions wanted to put before employers.

In May, the CCOO and UGT unions proposed to the negotiating table with employers that annual minimum wage increases by 3.5% year-on-year, 2.5% in 2023 and 2% in 2024, together with review clauses. Inflation exceeds what is agreed to prevent a loss of purchasing power for workers. The offer to revise wages in response to inflation was rejected by employers and a negotiation expected to resume in the early summer was interrupted. In his public statements, CEOE chief Antonio Garamendi continues to reject the union’s proposal to guarantee an inflation-like salary increase, thinking it would fuel a spiral of price increases. That same Tuesday, Head of Government Pedro Sánchez asked businessmen to “put their shoulders behind the wheel” to sit down and talk “so that barriers to the negotiation of many collective agreements can be removed” to encourage increased wages. . “We want a dose of responsibility from the bosses,” the president said in an interview with TVE’s Canal 24 Horas on Tuesday night.

Just as employers are not flexible in securing wages to increase at the same rate as inflation in the 2022-2024 period, unions display the same determination when demanding the wage guarantee clause. Sordo was only open to negotiations on how to deal with this recovery of purchasing power. “If employers had accepted a 7 percent increase this year, which was unthinkable, of course we would have been willing to forego a raise that would be the same as inflation, that is, above 8 percent,” Sordo said. When the table is reopened there may be some room for dialogue. However, the CCOO union believes that bosses will only do this exercise after a period of “intense” mobilization. In the next few days, UGT and CCOO are expected to finalize negotiations on a calendar that will combine unitary mobilizations in Spain with other specific expeditions by sectors or companies that may meet on specific dates, according to Sordo. Sordo ruled out the possibility of a general strike, at least for the time being.