Industry, labour agree to wage hikes in line with inflation
The country's main business organisation and leading trade unions yesterday signed an agreement highlighting the need to moderate wage demands.
19 December 2007
MADRID - The country's main business organisation and leading trade unions yesterday signed an agreement highlighting the need to moderate wage demands in order to rein in consumer price increases.
The accord between the Confederation of Spanish Business Organisations, the association of small-to-medium companies CEPYME and the CCOO and UGT unions calls for salary increases in line with target inflation of 2 percent in collective agreements signed for 2008.
However, the bargaining framework still includes a clause indexing wages to inflation, a practice which a number of multilateral agencies claim puts upward pressure on prices.
Consumer price inflation in November came in at 4.1 percent causing the government to fork out one-off hikes in pensions to compensate for the loss of purchasing power.
Separately, the National Statistics Institute said yesterday that average labour costs per worker and month climbed 4.2 percent in the third quarter of year to EUR 2,200, with salaries up 3.8 percent and other costs up 5.2 percent.
[Copyright EL PAÍS, SL. 2007]
Subject: Spanish news