If half of the agreements are not negotiated, the wage increase will rise to an average of 2.45%, the highest level since 2000, albeit well below prices
It was the major stumbling block that derailed this year’s collective labor agreement: the so-called ‘wage guarantee clauses’, which protect workers’ wages against price fluctuations; that is, they protect them so that they do not lose purchasing power in any case. If inflation rises more than agreed salaries, they are updated and compensated at the end of the year or period. Similar to what happened to retirees and the famous ‘paguilla’ at the beginning of the year.
But in a scenario where the CPI spirals out of control, already growing above 10% for the second month in a row, employers flatly refused to include this review clause in the wage agreement that unions demanded to sign. It should be noted, however, that in these first six months of the year there has been a sharp increase in the number of workers protected from rising prices: nearly 25% of those covered by an agreement, one in four, a percentage that hasn’t been seen for a long time, for over a decade.
This clause was generalized in most agreements until 2008. Until July of that year, more than half of the contracts guaranteed the purchasing power of nearly three in four employees (74.1%). But then the Great Recession hit and it gradually began to ease. The 2012 labor reform brought it to a minimum, to the point where in 2015, only 7.76% of agreements affecting 12.52% of people contained such a clause. Since then it has increased, but very slowly.
Yes, Seat employees will benefit, who, as agreed last week, will receive an annual pay increase of 6.5% until 2026 and also the shield of a review clause linked to the CPI. It is also considered by the Mercadona agreement, that of Lidl… Something that is surprising because of the refusal of businessmen to include it.
Currently, there are more than 1.5 million workers whose purchasing power is practically assured this year, even with a CPI as high as 10.8%, according to data published by the Ministry of Labor. And that almost half of the agreements are still to be negotiated in this second part of the year, as many are paralyzed, so this figure will continue to rise, according to Mari Cruz Vicente, secretary of Union Action of the CCOO, told this newspaper. , explaining that each agreement has its formula: some guarantee 100% of the purchasing power, others 80%, some update year after year, others at the end of the term…
The point is that those more than 1.5 million employees will almost certainly have to be “compensated” this year, as the average CPI could close at numbers even higher than 8%, according to some analysts’ forecasts. And the salary increase for this year, despite the biggest increase since 2000, barely reaches 2.45% – with preliminary data as of June – so it’s still very far from the high cost of living. This means that workers today lose more than eight points in purchasing power.
This wage recovery is in line with the previous collective labor agreement, which has now expired, but is one point lower than the 3.5% increase that the employers wanted to achieve, but without an update clause.
Of the 2,314 agreements registered in the first half of the year covering more than 6.1 million workers, there are no wage cuts and only 109, the equivalent of 4.7%, are considering a freeze. On the other hand, 30.4% receive a pay increase of more than 3%, the average is 5.42%, and 59.1% moves in average increments from 0.5% to 2.5%.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
