Monday, September 27

Nadia Calviño postpones raising the minimum wage to October and opens another conflict with Labor

The economic vice president delays, once again, the rise in the minimum wage. Nadia Calviño has placed this Monday the rise in the SMI for the last three months of the year, with October as the first in which it reached the workers’ payroll. In addition to the amount of the increase, the ‘when’ is another of the open discussions at the moment and to date it has not been ruled out that the rise will reach September. This Monday the Ministry of Labor meets with employers and unions in what is expected as the last meeting to try to reach a point in common with unions and employers.

The following battle arrives over the minimum wage: how much to raise it and if the increase will include September

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“The ideal is that we reach a clear position in the course of September, so that this increase can already be applied for October, November and December of this year,” said the first vice president this morning in an interview in La Hora de la 1 de TVE.

Sources of the social dialogue and the Ministry of Labor point to this that so far it has not been ruled out that the increase in the SMI could be applied in September, since the payroll is paid at the end of the month.

This Monday, the unions and majority business organizations (CCOO, UGT, CEOE and Cepyme) meet at 12 noon in the Ministry of Labor to discuss the rise of this indicator, which the Vice President Yolanda Díaz negotiates directly with the President of the Government, Pedro Sanchez. The president spoke on September 1 of an “immediate” rise in the SMI.

On the amount, Nadia Calviño has preferred not to pronounce on the Government’s proposal since the discussion is still open with the social agents, she said. However, the economic manager has referenced it to the report of Government experts on the minimum wage, which recommended a monthly increase of between 12 and 19 euros this year. The unions are asking for a greater increase, given the rise in prices of around 3%, while the employers demand that it remain frozen for the moment.

Extension of the ERTE in September

The first vice president has confirmed, on the other hand, the intention of the Government to extend the ERTE beyond September 30, although she has indicated that it will be necessary to do so “in the parameters that generate more employment.”

Calviño recalled that throughout the pandemic the ERTE mechanism due to COVID has been adapted, with different incentives and aid to companies in the payment of Social Security contributions. Thus, the vice president has argued that it will be necessary to agree on what conditions to extend the files at the end of September, as a “transitory” mechanism until defining the future permanent ERTE system after the pandemic, with the intention that they can be applied as of January.

“We must go to a permanent mechanism. This month what we have to do with the social agents is how we make that transition to continue helping sectors that have not recovered normalcy,” Calviño pointed out.

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