In 2022, agreed wages close with a big loss of purchasing power: a 2.8% increase compared to 8.4% inflation.

The loss of workers’ purchasing power was one of the economic keys to 2022, which was marked by a huge price boom, averaging 8.4% inflation. But the wages agreed in the collective agreements increased less than three times. According to data published by the Ministry of Labor this Tuesday, the year ended with an increase in the average salary in contracts by 2.8%.

The average wage increase of 2.8% is derived from 3,084 agreements with known economic effects registered until December 2022, affecting 911,187 companies and 9,043,999 workers. Contracts signed through 2022 included a higher wage increase of 3.3%.

The year 2022 is also characterized by the decrease of registered collective agreements, for 1024 years. The context that explains is the wage conflict that has set in this year between unions and employers, because employers have refused to negotiate a major state-level wage agreement, especially because of their fierce resistance to support negotiation clauses. Salary according to prices.

Two-tier salary

Without this state pact as a reference, the CCOO and UGT unions complain that companies and sectors with less bargaining power lag behind in wage growth compared to other activities where workers are more mobilized and have more power to accept larger increases. It’s what the CCOO calls “two-speed” collective bargaining that gained ground this year.

Because behind the average growth of 2.8% there is great inequality. The data of the Ministry of Labor show that 30% of the employees were affected by the contracts of salary increase of more than 3%. Specifically, an average of 4.8%. On the other hand, 43% of employees are affected by a 1% to 2% increase in their collective agreements.

In 2021, there were no such differentiated situations, with most employees positioned close to the average agreement of 1.47% for the year: 46% agreed to a 1% to 2% wage increase, while only 6% benefited. From a salary increase of more than 3%.

By sector, manufacturing – the sector with the most union strength in its workforce – is the one agreeing to the highest wage increases, averaging 3.3%. It is followed by construction with 3%, the service sector with 2.55% and finally, the agriculture sector, which agreed to an average growth of 2.53% for the year.

More review items depend on prices

Another news this year was the increase in the number of workers affected by the wage price revision clauses. A major demand of most trade unions was to overcome this inflationary crisis.

The CCOO and UGT demanded that employers agree to wage tables this year with more moderate increases than inflation, but sign commitments to review prices so that workers can regain lost purchasing power later. Employers categorically refused, but unions increased sectoral conflicts fighting these clauses, which flourished where they had more power.

According to the latest data, which could be boosted by the renewal of collective agreements delayed in the latter part of the year, workers covered by wage review clauses rose to 21% in 2022 from 15.6% in 2021.

Source: El Diario

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