The Ministry of Labor is convening employers and unions this Friday with the aim of capping the 2024 rise in the minimum interprofessional wage, a move tied to signals that the increase would exceed 4% if the current agreement collapses. The move signals a willingness to negotiate adjustments that balance wage growth with broader economic pressures while keeping social dialogue at the forefront.
Accounts indicate that employers have proposed a 3 percent increase, and they have declined to sign the agreement. This signals that two government requests are not being accepted: bonuses for the agricultural sector and the alignment of public contracts with the SMI, effectively creating a potential gap between workers’ pay and public-sector wage indexing in the short term.
Second vice president and Minister of Labor Yolanda Díaz welcomed the mounting employer churn and, in recent days, suggested that the SMI would rise markedly, signaling a preference for a meaningful upgrade that reflects living costs and job market realities.
Faced with the prospect of labor pressure, Antonio Garamendi, president of CEOE, consulted with sectors hit hardest by the pandemic in the past year to gauge the feasibility of a 4 percent increase as recommended by the Ministry. The goal was to align expectations with fiscal and business realities while preserving the possibility of a consensus-based outcome.
Those most affected are rural or low-wage, labor-intensive sectors such as cleaning and security, which serve the public sector and where existing contracts have not been updated to the SMI due to the deindexation law that constrains automatic adjustments. This creates a persistent lag between wage floor protections and actual earnings for workers in these essential services.
Within a broader climate of malaise among companies, Lorenzo Amor, president of ATA and vice president of CEOE, noted that the CEOE has clearly indicated it will not participate in any deal that feels like a coercive bid. He stressed that the organization will not bow to threats or pressure, advocating instead for a calm, studious approach to reaching a fair agreement.
In response, the unions affirmed their preference for a tripartite agreement, aiming for a smaller increase than originally claimed to foster consensus and accelerate the deployment of higher wages through collective agreements across sectors. The objective is to secure progress without triggering a stumble in broader economic recovery.
If business representatives refuse to sign, unions warn that they will not accept an SMI increase below 5 percent, signaling a strong stance to defend wage floors even amid economic uncertainty. The negotiation dynamics remain delicate, balancing business viability with workers’ basic living costs.
UGT general secretary Pepe Álvarez, in particular, signaled an intent to push the SMI from its current €1,080 per month to €1,135, arguing that a timely adjustment is essential to address inflationary pressures and preserve household purchasing power across the country.