The vice president reiterates her support for the union demonstrations for the rise in wages and announces that in August there will be a rise in unemployment
The tension between Yolanda Díaz and the businessmen is increasing. After the vice president of the CEOE, Salvador Navarro, branded the Minister of Labor “arrogant” for her “explicit support” for the union demonstrations for the rise in wages, the vice president has reiterated her position alleging that Antonio Garamendi ( president of the CEOE) knows that inflation above 10% “is unbearable for families.”
Furthermore, Díaz affirmed that currently the bosses “are not up to the level of their country.” “The workers are right,” said Diaz in an interview in Ser, in which he recalled that inflation is not caused by wages because “it is not a demand crisis.” In this sense, he highlighted a report by the Bank of Spain in which it was highlighted that large companies have increased their profits by 62% this year.
For this reason, she considers that the unions have “every reason to take to the streets to mobilize against Spanish employers” because “it is necessary” to raise wages in Spain, although she assured that she will not attend these demonstrations. «The employers got up from a table on May 5 saying that they did not want to raise wages and until July only 450 agreements have been signed when the normal is 2,000. It is blocking collective bargaining and this is serious,” said Díaz.
In his opinion, in a country like Spain, with “more than moderate” wages, it is “impossible” to live with inflation above 10%. Regarding the tension that has been generated with the employers, the vice president denied that her position on the side of the unions implies the loss of neutrality in the social dialogue: «I have signed 14 large social agreements and could have done it on behalf of, but I haven’t,” he argued.
Raise taxes on top earners
For this reason, it is committed to a “deep tax reform” because 80% of income tax (IRPF) is paid by “salary income”. “Fiscal injustice is supported by data. Those who have to contribute the most are not contributing », he pointed out. Thus, he said that the Government’s position is “clear” and they believe that “more action is needed.”
The situation may get worse in the coming months, especially after the positive trend in the reduction of unemployment was cut short last July. The vice president acknowledged that unemployment will rise again in August, as it is likely to do in September and October. But she pointed out that it is due to “the logic of the Spanish labor market” and not because the labor reform does not work. «It will be an increase in the unemployment rate in the normality of the month of August», she affirmed.
Minimum wage negotiation
In relation to the minimum wage (SMI), he reiterated that the Government “is going to raise it” and that the commission of experts will meet this Friday to make new approaches. His intention is that when the inflation data for November is available – which the minister predicted about 7% or 8% – the social dialogue table with unions and employers will be convened to address its rise.
Until now, the Executive’s commitment is to progressively raise the SMI until it reaches 60% of the average salary, but Díaz wants to revalue it “beyond” that path. The SMI was raised for the last time last February, after an agreement between the Government and the unions from which the employers got off the hook. It was raised to 1,000 euros in 14 payments, 35 euros more per month than what was established until then. The previous agreement signed in September 2021, when the SMI was improved from 950 to 965 euros per month, did not have the approval of the businessmen either.
Díaz confessed that she believes that on this occasion there will be no agreement between the parties, although she assures that “she will work for consensus.” “I would like a Spanish employers’ association that is close to its country and sensitive to those who have the least”, she stressed, referring to the “business margins” that allow action in this regard.
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