Garamendi pushes back on linking wages to inflation in a new agreement
Antonio Garamendi, head of the CEOE employers association, rejected the idea of a formal pact that would tie wages to inflation. He warned that such provisions act as a trap, hurting business competitiveness and the ability to sustain employment.
In a discussion with EFE, Garamendi argued that flexibility within negotiations is essential. He said demanding the inclusion of indexed wage clauses in a new Employment and Collective Bargaining Agreement makes reaching an agreement unlikely.
He stressed that one thing is setting a cap and another is accepting a perpetual link between salaries and the CPI. Garamendi emphasized that the core goal remains robust collective bargaining, pursued one agreement at a time.
Inflation fell to 8.9% in September, challenging the INE forecast
The leader of the employers’ association highlighted the difficulty of issuing a general salary recommendation in today’s climate. He sees room to maneuver, but without inflation-linked mechanisms.
“There is no claim that salaries should freeze. I see a path to an agreement, yet the immediate clause should not be used”, Garamendi stated.
retirement contract
Garamendi noted that government measures such as raising the maximum bases by 8.6 percent did not ease the situation. He pointed to a unilateral, non-dialogue agreement that followed the decision as an example of the challenge. The pension reform process remains intricate.
“Negotiations will continue, but the path will not be easy because there is little left to discuss”, he acknowledged.
He also criticized certain budgets for appearing misaligned and failing to address deficit issues amid high interest rates.
Escrivá hopes the CEOE’s discomfort over higher contributions won’t threaten pension reform
The notion that debts must be paid was underscored by Garamendi.
He added that there is room for improving the efficiency of the state and denied that criticizing a Budget proposal implies cuts to health or education. He stressed that the social stance is equal to that of other groups.
Courage is negotiation
A little over a month before renewing the leadership of the CEOE, Garamendi said he has earned broad support from within the organization for his decisions during his term.
“All deals except two — postponement and labor reform — received unanimous backing in this house” he stated, denying that disobedient votes reflected a rejection of the compromise reached. He framed those votes as responses to specific circumstances and not a signal of disdain for his administration.
“Is withdrawal what it means? I don’t think so. Just look at the level of support I’m receiving now as the November 23 CEOE election nears.”
Self-employed groups, metal workers, dealers, young entrepreneurs, SMEs, construction professionals, insurers, traders, and the Madrid business community publicly expressed their support for Garamendi’s candidacy.
“Courage is negotiation” remains the guiding principle, the stance that has proven difficult at times but shown social responsibility during tough periods. Garamendi takes pride in the strides made toward greater transparency and modernization over the past four years, ensuring space for large, small, and self-employed enterprises alike.