Employers and unions stall negotiations for a wage deal
Global pressures at the international level push prices higher, affecting family budgets and company finances alike. The challenge remains finding a balance between what workers deserve and what employers can realistically pay. In the latest figures, salaries in the province rose by 2.5 percent while overall inflation sits around 8.7 percent. Alicante’s growth is roughly half the regional average, a trend that has sparked mixed reactions. Unions argue that purchasing power is eroding, while employers feel businesses are exercising restraint in tough times.
New data from the Ministry of Labor show that in the first four months of the year a total of 56 contracts covered 84,239 workers, with an average salary increase of 2.57 percent. This is slightly above the national rate of 2.4 percent but remains below the Valencian Community’s average of 4.13 percent. Specifically, Valencia province saw a 6.77 percent rise, whereas Castellón registered a 2.48 percent increase.
These adjustments come amid ongoing concerns about inflation. The National Institute of Statistics reports a slight CPI drop of 0.4 percent in April, yet the four-month surge reached 3.4 percent and an annual comparison shows inflation around 8.7 percent. Unions keep pressing for stronger wage growth to counteract the erosion of purchasing power as price pressures persist.
Leaders like Paco García, secretary for CC OO in l Alacantí and Les Marines, lament the stalled talks with the Employers’ Association for Employment and Collective Bargaining Agreements. He notes that important regional accords in Alicante, including those for the hospitality sector, are tied to broader state negotiations. García highlights that wages are comparatively lower in Alicante due to a heavy emphasis on the service sector and urges employers to act so workers do not shoulder the burden of the crisis alone. Yaissel Sánchez, secretary for UGT, echoes a similar sentiment, stressing that wage reviews should not be dismissed and that the goal is a balanced outcome that preserves business viability. Unions also agreed on the increases they will push for in collective bargaining, anticipating 3.5 percent in 2022, 2.5 percent in 2023, and 2 percent in 2024, with revision clauses to adapt to evolving conditions.
The Valencian Business Confederation notes that salary increases in Alicante mirror national trends and that the unions are framing their demands as a responsible stance. They emphasize moderate gains tied to sector or company circumstances, acknowledging the economic uncertainty stemming from the health crisis and regional geopolitical events. The goal is a fair distribution of gains that can sustain employment and help navigate volatility without triggering undue risk for businesses.
On the broader economic front, the regional market shows varied momentum. Some sectors are more resilient than others, with energy, transport, and health prices showing softer movements in the latest CPI release, while essential goods continue to rise. Food and non-alcoholic beverages climbed by several points, while clothing and footwear posted the sharpest increase, followed by furniture and dining services. These shifts underscore how inflation patterns can widen gaps between different groups and industries, calling for nuanced wage decisions that support household budgets without compromising competitiveness.
Analysts warn that the overall trajectory remains fragile. As negotiations proceed, the focus is on achieving a durable accord that aligns wage growth with productivity, inflation, and the realities of the local economy. Stakeholders underscore that a well-structured agreement should include safeguards and flexible terms to respond to future disruptions, ensuring stability for both workers and employers. The situation remains dynamic, with continuous evaluation of market conditions and sector-specific challenges guiding the bargaining process as it evolves through the year.
In summary, while prices press upward and purchasing power faces pressure, consensus in several quarters points to cautious wage increases anchored in regional realities. The pursuit is a balanced path that protects workers while allowing businesses to maintain employment and invest for the future. Market signals and policy measures will play a decisive role in shaping the next round of negotiations and the broader economic climate in Alicante and the Valencian Community at large.