Agreeing with unions on wages remains the top priority for bosses who want social harmony, even if elections pose a setback. After pausing the income pact, attention shifts to government intervention and the possibility of another rise in the SMI, which together outline the most pressing challenges ahead.
Negotiating wages with unions
This is the leading item on the agenda of the CEOE employers association. The goal is to reach an agreement with trade union bodies within the framework of the Employment and Collective Bargaining Agreement (AENC). What stands out is not only a readiness to negotiate but also a clear confidence that business entities can achieve a favorable outcome. During the April 25 ceremony marking Cepyme’s 45th anniversary, Antonio Garamendi, head of CEOE, stated that he hoped to comment soon on this issue, emphasizing, “We are working diligently,” with more resources directed toward this effort than in other cases. Even political media acknowledge that progress is being made on aspects covered by AENC beyond wages, including equality, occupational risks, and remote work.
Regarding the figures, unions discussed a 13.8% wage increase for 2022-2024. The proposal would allocate 5% in 2022, 4.5% in the current year, and 3.7% in 2024. Executive sources describe the request as brutal, with little transparency from the CEO about counteroffers, and there is a veiled threat from unions to escalate conflict, including strikes or a general strike if negotiations fail. Government pressure has been noted, with discussions about a labor margins observatory, seen by some as an exertion of pressure rather than a neutral mechanism.
In reality, an agreement on wages benefits both sides. Entrepreneurs gain a stable framework for sectoral and regional bargaining and, most importantly, social peace in the event of a government change that might bring the PP to Moncloa. The unions stand to gain a significant victory that could restore their prominence after shaping the entire legislature in the shadow of vice-president and Minister of Labor Yolanda Díaz.
Tone down attacks on businessmen and address intrusiveness
Two of the most debated topics among business leaders surfaced during Cepyme’s act. Garamendi urged legal certainty and regulatory stability, promising work toward social peace. He also faced criticism for appearing somewhat distant on these issues within the organization. Gerardo Cuerva, president of Cepyme, took a firmer stance by demanding freedom and respect, condemning interventionist policies such as housing regulations and warning against populism. The day’s theme, proclaimed at Cepyme’s 45th anniversary, was “On business dignity.”
Media commentary highlights a mismatch in explaining cases like Ferrovial’s relocation to the Netherlands, which does not reflect the broader business class. In Spain, 95% of firms are SMEs and micro-enterprises, yet government policies sometimes target them. The narrative points to a confrontation where fewer than 35 companies exist, while the government seeks election revenue at the expense of the rest.
Prepare for another possible rise in the SMI
Some business insiders anticipate a likely increase in the Interprofessional Minimum Wage, a move that could lift the SMI to about 1,080 euros per month in 14 payments. As the election campaign continues, the government might use this moment to announce a new rise. Critics from CEOE argue that Spain already holds the highest SMI in Europe by average salary and that increases would raise salary bases, affecting overall costs. Official CEOE positions stress openness to wage growth but insist there must be a balance to protect competitiveness.
Regardless, the broader concern is not only the SMI but also other contributions shaped by pension reform, which have raised operating costs. With the income pact paused for electoral reasons, price pressures remain a central burden for the industry. An employer recalled that the country has one of the highest contribution margins in the European Union, nearing 40% of gross salary.