Gerardo Cuerva: “It’s not worth putting your hand in the profits of companies”

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Cepyme’s president emphasizes, after the failure of collective bargaining, that “the unions know they have to control wages to get out of this situation”

Barely a week has passed since employers and unions announced the temporary end to collective bargaining, the process called for to tackle wage increases in a context of high inflation. Gerardo Cuerva, the chairman of Ceppyme, one of the actors in those talks, emphasizes that it would be counterproductive to spiral into wage increases in his response to unions at the rate set by inflation. At the same time, it warns the government that limiting companies’ profits by law would also have adverse consequences for companies.

This is how it is responding to the government’s request to limit distributions or dividends within the Executive-promoted Income Accord. “What it is not worth, as the vice president of government says, is to intervene in the profits that fall from the sky from the companies,” Cuerva said in an interview with Ideal newspaper. “That will be at other latitudes, because in Spain legal certainty is a basic principle,” he says. “What it’s not worth is putting your hand in the corporate drawer, at least in the world I live in,” Cuerva notes.

The Cepyme chairman also refers to the failure of negotiations with the unions to address the wage increase proposed by the unions, in order to link it to the IPC clause. Cuerva insists that “we need to be aware that we’ll get through this together.” And remember that “the unions know that to get out of this situation it is necessary to keep wages in check.” “We’re not saying you shouldn’t go up there. There are niches that work and wages are rising without measure. Unions need to be aware,” he says.

To get out of the current inflationary situation, Cuerva admits that “it is very complicated to control”. And he warns that we must be careful with the rate hike, “otherwise we will eventually cool the economy.” That’s why he insists on containing the sllarios. “The government is doing it itself with civil servants, who are up 2%. But what will happen to their pensions? «56% of Spanish SMEs have seen their margins fall. There is another leg that is not being talked about and that is the administration itself. Citizens tighten their belts, the company tightens their belts and the administration does not. I ask for efficiency,” he clarifies, referring to his calculation of EUR 60,000 million in public expenditure that can be reconstituted.

It also refers to the most recent employment data and the effects of the labor reform. “Construction contracts, for example, have changed names, but remain the same,” he clarifies. And he insists, “I don’t like doing job demagoguery because it’s time to bet on the company because it’s still very bad.”

Source: La Verdad

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