He denounces the unequal distribution when salaries only grow by 2.8% and the return on capital increases by 8%
Unai Sordo (Barakaldo, 1972) took a few days off to recharge the batteries before returning to the summer considered hell and not exactly because of the requirement to turn down the air conditioning.
In the middle of the recession drums, you have to sit down to negotiate the lease. The leader of CC OO explains that the union is willing to assume that the inflation increase will be spread over three years, but defends that wages should restore 100% of purchasing power.
– The labor market, which has so far resisted so much, has just experienced its worst July in history. Is it a turning point?
– The data is not good, but it needs to be contextualized. It comes after a very positive evolution. And one of the reasons is that the hospitality industry has underperformed because many contracts have been brought forward to June. We have to wait until August and September to see if we see a trend reversal due to the economic downturn. Perspective is missing.
– Vice President Calviño has recognized the risk of a recession. Do you see this scenario?
– The uncertainties are obvious. We have 10% inflation and an energy crisis that could put Germany, the engine of Europe, in a very difficult situation. In principle, the prognosis is for growth, but no one is aware of the risk of contagion if the deterioration worsens.
– What are the recipes for CC OO in this scenario»?
– Three types of measures should be taken. One, rather controversial and unprecedented, would be to control the prices of commodities. On the other hand, we must implement a salary increase and take fiscal measures to protect the most vulnerable groups and the middle class. It cannot be the case that salaries increase by 2.8% and the compensation of assets by more than 8%. And in the end, Europe cannot resign itself to the permanent war in Ukraine.
– Looking at the measures proposed by the CC OO, what prices do you think should be met?
– In the past, such measures were taken with the masks and now that is done with gas for electricity generation. I think limiting the prices of basic goods in the basket should be explored in sectors where companies have sufficient margins.
– The main battle horse is that inflation is passed on to wages, but there is no agreement with the CEOE and the lease is pending. How are the positions?
– The CEOE refused to sign an agreement that would include salary review clauses with inflation, which are essential to ensure that salaries do not pay again for the crisis.
– He criticizes the CEOE for refusing to link salaries to the CPI, but there are many companies that cannot tolerate a 10% salary increase. How far does your flexibility go?
– The position of the unions is sensible and flexible. It involves agreeing initial increases within three years (between 3.5% and 4% for this exercise and slightly less for the next), but then there is an adjustment with inflation. So that at the end of the cycle, in 2024, 100% of the increase in the CPI is recovered.
– Would you be willing not to recover 100% of inflation and set a cap?
– Our position is that it recovers 100% at the end of the cycle.
– And if not, will they mobilize?
– With inflation set to end the year between 7% and 10% and wages only increasing by 2.8%, we are not going to encourage people to resign. Mobilization will be promoted to make the bosses change and for the government to do its part because it has many cards in store.
– What are you asking the government in that lease?
– That the unemployment benefit will improve with the correction of the reduction that Rajoy introduced in 2013. With this reform, the benefit was reduced to 50% of the salary from the sixth month. I think you should increase it to 70%. We also demand the emergence of the SMI according to the approved commitment.
– The government has already taken steps. It has partially heeded their claims and approved taxes on energy companies and banks. Are you satisfied with this left turn of the coalition?
– First we need to look at how these taxes are developed. But both measures sound good. It was necessary that a sector such as the energy sector, which has received benefits that have fallen from the sky – or rather, from the pockets of the citizens – will have an impact on the population. And the same goes for banking. The sector has wide margins and profitability will improve with the increase in Euribor. These are positive measures, but insufficient.
– What else do you want?
– I think there are more sectors in which large companies pay barely more than 5% or 6% corporate tax. Therefore, the minimum effective rate of 15% would be needed.
– Defends that pensions should not be included in the income agreement and that they should increase in line with the CPI, as was included in the reform. But many experts warn that the cost to Spain is prohibitive.
– An agreement has been signed to upload them with the IPC. I don’t see any other scenario. There are retirees who only get 1,000 euros. If anyone thinks that the highest should not be revalued in those terms, let them propose tax reform. What is impossible is to go to extremes and let pensions lose purchasing power.
– What about the officials? Should your salary increase in line with the CPI?
– I think that other variables will come into play in the situation of civil servants. If measures are taken, such as strengthening the workforce in the public services, it is possible to negotiate flexibility in the salary increase.
– Despite the fall in July, the weight of permanent contracts has remained, but there are many doubts about the quality of the new permanent contracts.
– It is the great unknown. Precarity is like Lerna’s Hydra, you cut off one head and another appears. We’ve made a major reform to stop temporary work, which has produced some spectacular data, but there is an increase in part-time hires that needs to be monitored closely. I think there are sectors where four hour contracts are made to pay for the rest of the day in B. The Inspectorate has an important role to play there.
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.
