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Unions UGT and CCOO they urged this Tuesday to the CEOE return to the negotiating table to update workers’ wages with the cost of living, suggesting that the companies have a piggy bank to prevent their employees from losing purchasing power to rampant inflation.

“Companies have a accumulated surplus of 210,000 million since 2015 that if they don’t go to salaries they could go somewhere else,” said the general secretary of the UGT, Pepe Álvarez, during a conference organized by the Apie at the UIMP in collaboration with BBVA.

“It cannot be that salaries are the only ones paid in this inflationary system,” seconded the secretary general of the CCOO, Unai Sordo, in the same forum, who warned that not guaranteeing purchasing power poses a risk to the economy itself if it ends up billing with a retraction of consumption.

Both union leaders They also notified the CEOE of one explosion of conflict if the problem is not addressed. “If we go to a new depression in wages, the country will experience enormous difficulties in terms of social management, political management and economic management,” Sordo warned.

“In September there are going to be more reasons to sit down because the conflict in our country is going to grow: Either there is an agreement with CEOE or there is conflict. There is no possibility that we are going to sign the lower agreements and they will not be all the life without closing, without reaching an agreement. Conflict is served if we are not able to find that framework of agreement,” added Álvarez.

The breakdown of the negotiation took place due to the direct refusal of the CEOE to link the salary increase with the evolution of the CPI with the argument that it is unaffordable for companies, especially SMEs, and will cause the feared second-round effects.

UGT and CCOO have proposed to the employers increase salaries by around 3.5% with salary review clauses at the end of the year to offset the excess increase in inflation over that bracket. The leaders of both unions they denied that it will produce second-round effectsby delaying the increase over the CPI to 2023 and being able to be charged against the accumulated surplus aforementioned.

Sordo and Álvarez agreed that the Government does not have any role of mediator in this matter because it is the responsibility of the social agents to reach an agreement, although they suggested that it could act if the salaries are not updated in another way. The CCOO leader added that it would not be efficient, among other things, because a lack of conviction on the part of the social agents would make any agreement inapplicable for not defending its transfer to the conventions.

tax on electricity

During their intervention they also valued positively the proposal of the Second Vice President and Minister of Labor and Social Economy, Yolanda Daz, of raise corporate tax by 10% for large electric companies, although they estimated that it falls “short”. “We are not benefiting from legitimate benefits, but from usury, and in the face of usury, the Government has the obligation to act,” Álvarez claimed, alluding to the result generated by the energy price calculation system and not by the costs incurred.

To deal with this situation and curb the high electricity prices, he estimated that “Spain will have to have a national energy production company sooner rather than later because that is what is going to free us from this electricity dictatorship.”

the leader of CCOO considered “more appropriate” a “comprehensive” tax reform, looking very well at the “small print”. I expressly advocate for set a minimum corporate tax rate of 15% in the accounting result -taking into account bonuses and exemptions to prevent their resource from reducing the tax rate-.

“The large companies that invoice more pay a type of company that does not reach 5% and it is not bearable, it is not tolerable. And this could provoke a collection of around 5,000, 6,000, 7,000 million that I think this country needs,” he added.

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J. A. Allen

Author, blogger, freelance writer. Hater of spiders. Drinker of wine. Mother of hellions.