The Basque Business Confederation believes that the reform will lead to a “strong increase in labor costs without being accompanied by higher productivity”, something that, in the current context of “great uncertainty and low profitability, will undermine the competitiveness of businesses will seriously affect” in the Basque Country.
confebasque, the Basque Business Confederation considers that the pension reform announced by the government of Spain, which increases the revenues of the system by increase contributions from companies and employees to social security, will have major consequences for Basque companies in the next two years and hamper their competitiveness.
The confederation has made an initial estimate of the additional costs that the measure will entail in the short and medium term. For example, he estimates that companies as a whole will be forced to provide a additional costs of approximately EUR 530 million for the next two years, 2024/2025. If the reform is maintained under the current known circumstances, these additional operating costs would amount to almost 1,500 million until 2030 and 5,000 million until 2045. the maximum premium bases.
In view of these figures, the entrepreneurs’ federation believes that the measures are a “great corporate punishment”due to the increase in labor costs “without being accompanied by higher productivity”, something that, in the current context of high uncertainty and low profitability, will seriously hamper the competitiveness of the Basque Country’s industry”.
According to Confebask also the employment will be harmed, as the measure will “discourage the hiring of more employees as their fixed costs are high”. In addition, “it will hurt workers’ purchasing power,” at a time of high inflation, as they are “measures that will reduce take-home pay and limit companies’ ability to update current staff salaries, impeding negotiation emphasizes collective and industrial relations.
Similarly, Confebask estimates that the increase in maximum contribution bases will affect nearly 100,000 employed workers in the Basque Country, which “will penalize the hiring of more qualified workers and extra difficulty to attract talent in Euskadi”.
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Source: EITB
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.
