The Valencian company agrees to extend the increase with inflation included in the base salary agreement to all full salaries in order to guarantee the purchasing power of its nearly 100,000 employees
Mercadona distinguishes itself by a generous remuneration policy for its employees, who generally enjoy higher salaries than the competition. Now the leading Valencian food chain goes one step further and although the agreement states that the wage increase with the CPI only affects the base salary, it has extended this increase to all wages as a whole, that is, all accrued bonuses due to the almost 100,000 workers will rise in January according to inflation.
Juan Roig’s company announced this in a statement on Friday. «The Executive Committee of Mercadona agrees, for consistency with the Total Quality Model of the company, to increase the salary of all its personnel in accordance with the CPI, not only on the base salary as indicated in the company agreement, but on the total salary of the staff including corresponding supplements”, the text explains.
This measure will take effect from the January payroll of the more than 96,000 employees that Mercadona has in Spain and Portugal, according to the CPI for the month of December for each country. It therefore represents an increase of 5.8% as inflation will end December at this figure, according to data provided by the INE this Friday, and will allow the labor force to maintain its purchasing power.
The distributor estimates the cost of this measure to be around 200 million euros, which the company intends to compensate with efficiency measures and cost savings it has already implemented, such as improvements in the digitization of its processes and the commitment to make all employees aware of the costs incurred to analyse. All this has led to a productivity increase of 9% and cost savings of more than 200 million euros.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
