You are currently viewing The CEOE rejects raising the SMI to 1,000 euros per month as proposed by the Government

The script for the rise in the minimum interprofessional salary (SMI) is being fulfilled. After the Ministry of Labor proposed this Monday to the social agents a rise to 1,000 euros per month, the CEOE has already said ‘no’ to the proposal.

The management committee of the employers’ association, meeting this Tuesday, has rejected the increase proposed by Yolanda Díaz, second vice president of the Government and responsible for Labor. Not one of its members has put forward an argument in favor of a measure that was already rejected by the companies in September, according to sources attending the meeting.

In a statement, the employers’ association recalled that while “the remuneration of employees has practically recovered the levels of 2019 (prior to the crisis), the gross operating surplus is still a long way from normalizing its situation and it continues to be 6.6% lower than in 2019.

This implies that companies are behind in the recovery of normality and “it is a reflection of the difficult situation that the business fabric is still experiencing,” according to the CEOE. Entrepreneurs argue thata new rise in the SMI will contribute to increasing labor costs and pressure on company margins“.

This, added to “other risks such as the rise in the price of raw materials or bottlenecks in global supply chains, can lead to a less economic dynamism in the future and to lower job creation.

costs

“All this after companies have assumed a 30% rise in the SMI since 2019, with a recent rise in September of last year”, which would reach 5.2% added to the one proposed for 2022 (35 euros more compared to the current 965 euros per month).

In addition, the CEOE recalls that to the increase in the SMI is added a “rise in social contributions, forming a total cost per employee for companies much higher than those 1,167 euros per month (in 12 payments) that are proposed and that would exceed 1,500 euros in general terms“.

“Ultimately, the Government’s proposal is unaffordable for especially vulnerable sectors such as agriculture and those intensive in labor (cleaning, hospitality, etc.), which have been bearing all kinds of cost overruns for years,” insists the employers.

In any case, on this occasion the CEOE’s planned rejection of the rise in the SMI has an internal reading. Garamendi needs to recover support in the face of possible dissent generated by the employer’s support for the labor reform. And the rejection of the salary increase allows him to gain an image before different business factions.

Rise

The support of the CEOE is not necessary for the SMI to rise. This Wednesday, in a meeting that the employers will also attend, the Ministry of Labor will close its increase to 1,000 euros per month, 35 euros more than the current 965, with an agreement that will only be possible with the unions.

With everything, such a pact would not be necessary. The increase in the SMI is an exclusive decision of the Government, although it has to consult with the social agents. The increase, which will be retroactive until January 1, will be executed in the Council of Ministers on February 22, as EL ESPAÑOL-Invertia advanced.

On the other hand, despite the opposition shown by the employers in the SMI, it is willing to negotiate the path of updating wages in the framework of the negotiations of the next Interconfederal Agreement for Collective Bargaining (AENC).

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