Banking Sector Reopens Collective Bargaining Amid Inflation Pressures
The Spanish Banks Association (AEB) reached an agreement with two major unions, CCOO and UGT, proposing a 4.5% salary increase through 2023 for bank employees, higher than the 1.25% outlined in the current collective agreement, according to statements from the unions and the employers.
Only 71.38% of the workforce is covered by these negotiations, which are taking place as part of reopening the existing collective bargaining agreement, valid until December 31, 2023.
Following the release of CPI data and 2022 corporate earnings, both unions plan to push for reopening the Sectoral Observatory and, where appropriate, revive negotiations within the agreement’s negotiation commission to explore additional compensatory measures.
The employers’ association, representing banks like Santander, BBVA, Bankinter, and Banco Sabadell, along with unions CCOO, UGT, and FINE, resumed collective bargaining discussions to address wage growth in response to the inflation crisis described as “exceptional” by AEB’s chief Alejandra Kindelán at a recent financial forum.
The restart of talks followed months of meetings at the Sectoral Observatory, aimed at assessing the sector’s situation amid high inflation and identifying paths to mitigate its impact effectively.
Unions welcomed the agreement as a milestone, highlighting it as a concrete outcome of mobilization efforts and observatory-driven demands for salary increases that culminated at the end of October within the observatory’s framework.
Moreover, CCOO and UGT underscored that the resumption of negotiations on a closed and existing agreement marks a precedent of significant importance, acknowledging an extraordinary economic context that was unforeseeable at the time the agreement was signed. The measure is viewed as a mitigation effort primarily aimed at easing inflationary pressure on sector workers under the XXIV. Banking Collective Agreement.
The unions see this as a step toward ensuring sustainability for the sector, with plans to revisit further stages in 2023 once CPI data for the year is finalized and 2022 business benefits are assessed.
CCOO and UGT describe the contract as strategic within a broader federal campaign to remove barriers to negotiating the Employment and Collective Bargaining Agreement (AENC). The goal is to move beyond single, one-off compensatory payments toward consolidated, recurrent, and structural rebalancing measures applicable to ongoing negotiations and contracts in progress.
The AEB stressed the deal’s value, noting that both sides are acting with responsibility in light of extraordinary socioeconomic conditions.
“The agreed salary increase recognizes the efforts and personal commitments of banking sector workers in this exceptional context,” the organization stated.
FINE Rejects the Deal
On the other hand, the FINE union, also involved in the collective banking agreement talks, refused to sign the accord, arguing that the proposed increase represents only 3.25% of the changes contemplated in the agreement and may not reach a majority of employees given the absorbable nature of any supplements held by employers.
FINE’s leader Elena Díaz noted that the cumulative CPI for 2021 to 2022 reached 12.60%, and stated that the current agreement would fail to restore lost purchasing power.
Analysts note that any further steps will depend on additional CPI data, 2023 economic developments, and the evolving stance of the negotiators as they consider 2022 corporate performance and 2023 inflation trajectories.