Saturday, September 25

Employers reaffirm their rejection of raising the minimum wage in 2021: “This is not the time”


Entrepreneurs anchor themselves to the ‘no’ to the rise in the minimum wage this year. The Second Vice President and Minister of Labor, Yolanda Díaz, assured on Monday that she will continue negotiating to try to reach an agreement on the increase in the SMI for the last tranche of 2021, but everything indicates that businessmen will not be part of the consensus. This Tuesday, the CEOE employer leader, Antonio Garamendi, has reaffirmed his opposition to the increase sharply in an interview. “It is not good, it is not the time to raise the SMI”, reiterated the Basque businessman.

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Garamendi, in statements to Radio Intereconomía collected by Europa Press, has affirmed that the CEOE is not opposed to an increase in the SMI, but rather rejects that it should rise in 2021, at a time when they consider that it is necessary to promote economic recovery and employment . “With this rise there may be fewer people entering employment (…) With which it is falling, it is a very delicate moment and you have to be careful with what you touch,” the business leader defended.

In response to the statements of the Second Vice President and Minister of Labor, Yolanda Díaz, urging the CEOE to explain why it does not support the rise in the SMI and, therefore, the most vulnerable population, Garamendi has indicated that the employers are “with weak people like rural people” or with very small companies that are out of the agreement and to which the increase in the SMI “can do a lot of damage”, because in the last three years this minimum income has already risen 30% .

The salary increase proposed by the Government would be applied for the last months of the year and would be in the range of about 12 to 19 euros per month of increase, as recommended by the expert report commissioned by Labor to prepare the path of raising the SMI to 60 % of the median salary at the end of the legislature. This is a more limited increase than that demanded by the unions (between 20 and 30 euros), which recall that prices have skyrocketed in the last months of the year.

Antonio Garamendi recalled for his part that there are other “compelling reasons” to now oppose the rise in the SMI, such as the fact that the State and the rest of the public administrations are not transferring the rise in the SMI to public procurement. Garamendi has also argued that “21%” of the agreements that are being signed this year include a salary freeze, such as the Madrid hospitality agreement.

“It is not a good it means that the employers are not going to sit at other tables of social dialogue.

“There are a thousand issues on the table and we will sit down to talk and if we do not agree, we will say so, like this time. I owe myself to the companies and the self-employed in this country. We make the proposals that we think are good for Spain ( …) We are not going to be pending of pressure “, has indicated.

Ask to open the ERTE table

On the other hand, Garamendi has urged the Government to already convene the negotiation table on ERTE in order to agree on the conditions for the extension of these instruments beyond September 30.

In his opinion, the ERTEs should have continued until December and now it is time to negotiate a new extension because, as he has said, there are still restrictions. In this negotiation, the CEOE leader will have to see what exemptions in Social Security contributions are established because there are sectors that are still “touched”, but others are coming forward.

“You have to put the batteries to work as normal. We have a debt of 120%. Nor can we continue to play that there is money because yes, we must use the necessary in the necessary causes, but effectively we will have to see how these are raised ERTE. I hope that we are called to the table and that companies and freelancers are not waiting until the last day to see how these issues are resolved because they need tranquility, “he explained.



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