The

Government

has decided to align itself on this occasion with the employers' association and has launched a campaign to get

the unions to accept moderate increases in wages,

despite skyrocketing

inflation

, to prevent second-round effects from occurring and the country from falling into a inflationary spiral.

This has been requested by the president himself,

Pedro Sánchez

, at the

Federal Committee of the PSOE

held this Sunday and will be transferred this Monday to the social agents at the scheduled meeting of the Social Dialogue Table for the Recovery, Transformation and Resilience Plan .

Employers and unions already saw each other last Thursday to address the signing of the fifth

Agreement for Employment and Collective Bargaining (AENC)

, in which their recommendation on salary revaluations included in collective agreements will be marked from here to the next years , and next

Wednesday, the 9th, they will meet again

to start sharing specific figures.

The president wants to anticipate that second meeting

and this Monday he will ask for "

moderation

" from the interlocutors, in a clear nod to the bosses with whom this time he has aligned positions.

Sánchez wants the income pact to be the "first axis" with which to deal with

the impact that the war in Ukraine is going to have

on prices.

"An income pact, a great country agreement that provides stability and confidence, both from the perspective of

salary costs

, and from the

moderation in margins and profits of companies

" in a context in which "one of the largest economic risks of the war is the price of energy, of various raw materials and their transfer to the CPI," he said last week.

In exchange for mediating so that wage increases are slight, the president

has asked the country's companies not to transfer excessive cost increases to final prices

, since that would also fuel the spiral.

For the time being, the

CCOO and the UGT do not seem to be very much in agreement

with this "income pact" which, in their opinion, will impoverish the working class and they demand

wage increases of around 5%

, given that prices rose in February 7.4% compared to the same month of the previous year.

Business

sources

, for their part, admit to EL MUNDO that they would be willing to agree to more moderate increases, below underlying inflation, which in February was 3%, that is,

around 2.5%.

A rise of that level would be in line with the one approved by the Executive to revalue pensions, for example.

The Government anticipates the meeting on Thursday

Although this Monday's meeting is to address the evolution of the Recovery Plan, the First Vice President of the Government,

Nadia Calviño

, has assured that the income pact will be discussed.

In an interview on Antena 3 this week, he recalled "the importance of the Executive promoting this meeting between social agents" to address the evolution of wages, "the evolution of profits and business dividends because the impact has to be distributed as well in the economy as a whole" and support measures for the most vulnerable groups.

In addition to reaching this income agreement,

the unions demand that it be completed with a tax reform,

for which, precisely, the Ministry of Finance has just received the report from the committee of experts with recommendations such as harmonizing the Wealth Tax and reviewing the application reduced VAT on some products and services.

The president of the CEOE,

Antonio Garamendi,

has defended that, "with or without an agreement",

the negotiation on wages must conclude during the month of March.

In addition, he has publicly rejected the 5% figure and has indicated that employers have raised wages by 2.1% this year, because they have to set an "example" of containment in a context marked by "uncertainty" due to inflation and the war in Ukraine.

In addition, the president of the Spanish businessmen has warned of the "risk" that "if we play inflation with wages" a "problem" will be generated by converting inflation into structural.

At this point, the second vice president of the Government and Minister of Labor and Social Economy,

Yolanda Díaz

, assured this week that the war in Ukraine derived from the invasion of Russia "is going to have economic and social consequences" in Spain due to the rebound in the inflation and has defended a "sharing of the burden" between employers and workers.

However, although she has recognized that this negotiation "is the responsibility of the bipartite dialogue",

the Government "is going to work to take the measures that are effective and necessary

so that the people do not suffer more as a consequence of this war".

Likewise, she has opted for the measures adopted by the Executive "as much as possible" to be "colegial and agreed" with the rest of the political forces.

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Know more

  • Ukraine

  • Nadia Calvino

  • Russia

  • THE WORLD

  • UGT

  • Pedro Sanchez

  • salaries

  • Inflation

PricesInflation exceeds forecasts and unleashes a battle for wages: "You have to tighten your belt"

CPI Inflation shoots up 7.4% in February after the outbreak of the war in Ukraine, a record since 1989

AENCCEOE puts as an example of moderation the rise of 2.1% that it has applied to its salaries this year

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