The tension accumulated by prices since the escalation of electricity prices in May of last year and its chain with the outbreak of war in Ukraine are the two factors that will be present today at the opening of the

Agreement for Employment and Negotiation Collective (AENC),

a pluriannual social pact between employers and unions.

Salaries are not the only point to negotiate.

The AENC is a framework of recommendations that companies and unions undertake to apply later in sectoral negotiations.

Any labor aspect is possible, such as the circumstances in which the reform approved last December will be applied and will come into full force on April 1.

But

circumstances have turned wages into the main dish, with conflicting positions between unions and CEOE.

The representatives of the workers come with delayed demands and increases of 6.1% and 7.4% in February.

CCOO

has not put a figure but today goes to the headquarters of the

CEOE

with two keys: the workers

cannot lose purchasing power and they have to recover the salary revision clauses

lost in the agreements in the years of flat prices.

Until 2021, those clauses that allow adjusting the purchasing power of salaries to last bull only covered 16% of the agreements.

UGT, the second with the highest degree of representation in Spain

, was more determined last January

. Its head of labor relations,

Mariano Hoya

, announced that the bar set for wage increases in sectoral and company agreements

would be 5% .

for this year

, to which the salary guarantee clauses should be added.

Until then, the union led by

Pepe Álvarez

pointed to increases that did not reach 4% Álvarez underlines every time he has the opportunity that employers have breached the previous AENC valid between 2018 and 2020 in salary matters, which forces them to assume decreed rises in the SMI up to 1,000 euros.

The businessmen await the negotiation without marking any position, although they point out that the increases in the CPI are propelled by exorbitant increases in energy prices that do not denote a general increase in prices.

"Not all companies are the Ibex nor have they recovered benefits like the energy companies: three million have less than five workers and

75% have not seen benefits for two years,"

business sources point out.

CEOE and Cepyme

have complained on numerous occasions that the previous AENC established that the Administration index its contracts to the CPI and it has not done so, with the consequent loss for businessmen.

Also that in the last half year the contributions to finance the Intergenerational Equity Mechanism (MEI) of Social Security in the pension reform have risen by 0.6% and has raised the SMI to 1,000 euros.

All ignoring their requests for "prudence".

The possibility that the negotiations continue without an agreement while the IPC maintains strong pressure derived from the economic war with Russia with the consequent

loss in the wages of millions of workers and conflict

in companies is more than real in the coming months.

Also the warning from the

Bank of Spain

that the round of negotiations of the AENC must be moderate precisely in wage increases to avoid second round effects, which is called an

inflationary spiral

.

That is why yesterday

Pedro Sánchez

, President of the Government, echoed the supervisor's recommendation and launched his proposal for an income pact in the plenary session of Congress, a measure that the CCOO had been demanding for a long time.

The offer was received with different opinions among the social agents.

If the CCOO indicated that the inclusion of economic policy measures related to

reducing energy prices or rents

, they would be very timely.

In the bosses they see Sánchez's offer as an opportunity to

lower prices.

"Do you want to raise the salary of the workers? Well, it contributes by cutting contributions," says a businessman aware of the opening of negotiations.

stop in february

Labor market conditions in February and over the coming months are subject to numerous factors that set it apart from previous periods with which it is compared.

In addition to the recovery from the pandemic, prices, the economic war and wages, the labor reform is coming into force.

At the end of February, the number of unemployed registered in the Public Employment Services Offices fell by 11,394 unemployed in relation to the previous month.

In relative values,

the decrease in unemployment was 0.36%

.

With this advance, registered unemployment has stood at

3,111,684 people.

However, this greatest drop in this month since 2015 and the Government denies a moderation in the pace of employment growth, attributing the figures to the seasonality of the labor market.

"The challenge is that the high CPI does not affect the recovery," said the Secretary of State for Labor,

Joaquín Pérez Rey.

“It is premature to speak of a slowdown,” Israel Arroyo

, his counterpart in Social Security , has supported

him when asked about the reasons why the advance in affiliation last month was lower than that registered in the same period of 2020.

For its part, the number of Social Security affiliates

in seasonally adjusted terms stood at 19,934,481 people

in February, after increasing in the last month by 37,726 compared to the previous month (

0.19% more

).

Since the spring of last year, more than 905,000 jobs have been created and the growth trend from before the pandemic has been consolidated.

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Know more

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  • CCOO

  • Pedro Sanchez

  • Russia

  • Ukraine

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Temporality Ten years of the PP labor reform: it says goodbye with a million more permanent workers than in the best year of the series

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See links of interest

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  • Economy Podcast

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