Second vice president Yolanda Diaz, summoned employers and unions to a meeting on Tuesday with the aim of closing the Professional Minimum Wage (SMI) increase. Over the past weeks, the Labor chairwoman has pressed to raise this index to around 1,085 euros, the high range suggested by her experts, which in practice would be more than 80 euros per month retroactive to January 1st. An offer with the stamp of a prime minister, which is close to the 1,100 euros urgently demanded by the unions, but far from the 1,040 put forward by the companies.
And although Vice President of Economics Nadia Calvino urged Diaz to seek the support of companies in these negotiations, reaching an agreement on the rise in the index is an impossible task, after Monday. Employers will announce that they will not attend the appointment with the government and unions. Sewe’s decision comes after he announced he had broken off dialogue with the minister in December on charges of “cheating” after he agreed with E.H. Pildo to control mass dismissals by the Inspectorate.
This agreement with the radical formation caused a few days later the first corporate sit-down to a meeting. Diaz summoned them to talk about the development of SMI in 2023, although They sent their proposal to raise it by 4%.. He offered two conditions: first, that the executive branch amend the law to index public contracts for this increase (and be able to pass the rise in SMI on contracts in progress); And secondly, for the government to apply a 20% reduction in contributions to the agricultural sector and domestic workers, who are most affected by the increase in the minimum wage. Yesterday the employers complained that they did not receive a response to this offer and called the executive and called the executive to send their proposal so that they could analyze it.
With the scenario that the Minister of Labor will raise this Tuesday at the dialogue table, the index will rise to approach 40% since the rule of Pedro Sanchez, in The bull race seeks to put it at 60%. of salary from the average salary (about 1050 euros) before the end of the legislature, as determined by the European Social Pact signed by Spain and committed to by the coalition government.
Therefore, the Labor boss is likely to close a deal this Tuesday only with the power plants he runs Pepe Alvarez and Unai Sordo, which doubled the pressure on the government to make an increase of about 100 euros to protect the most vulnerable and stimulate consumption. In this case, what happened with SMI’s rise to the current €1,000 would be reproduced, an agreement from which CEOE and Cepyme withdrew because they realized that it was not appropriate to make a growth of close to 4% at a time when many companies still had not recovered from the pandemic.
Today’s trade distress is based, as in yesterday, on the fact that the new increase mainly affects small and medium-sized companies and the self-employed, which are besieged by Rising costs and the inflationary spiraland for highly sensitive sectors such as rural areas, youth without qualifications, and domestic workers. Approaches far from the ideas of the second vice president, who defends that raising the minimum wage “is the most effective measure to get out of the crisis” and that it works to “compensate for the loss of purchasing power” suffered by families. .
Dispute with Calvino
Traditionally the minimum wage is a source of contention between Diaz and Calvino. The latter, which is more in line with companies, has been urging the first for days to address an increase that is compatible with the ability of companies to also create job opportunities and reduce youth unemployment. The Minister of Economy spoke again yesterday in this sense and emphasized that the increase in the minimum wage should be part of an income pact with the aim of improving the salary conditions of Spanish workers as a whole. “Not only should the minimum wage go up, we have to Improve salary conditions of all workers in Spain,” Calvino said.
The retroactive effect of the increase in the minimum wage will force companies to adjust the salaries indicated in this indicator, which are currently around 1.8 million. Affected workers, those who do not have an agreement, will have to collect salary compensation for January as well as update their payroll for February. If Diaz finally decides to take the step and strike a deal with the unions, This may not be the government’s last ascent. The business has made it clear at times that it is open to considering a new hike in the middle of the year depending on how prices evolve.