Spain raises minimum salary to €1,000 as of Jan 1 after agreement with unions
Business associations reject deal, which sets gross annual wage to €14,000
Business associations reject deal, which sets gross annual wage to €14,000
Gross salary set at €13,510 per year while Spanish government says it aims to increase figure to 60% of average wages
Labor union report also finds it would take about 350 years for pay gap to be neutralized
Spanish government, trade unions, and employers' associations agree on raise
Spain is the only administration that can set a binding standard, now at €900 per month
Catalonia has recorded the lowest post-August unemploymenttotal since 2008
Spain’s minimum salary levels deemed “insufficient” for not taking into account Catalan cost of living
Government to launch a minimum wage, although it has no powers to make it binding
Catalan government calls for a repeal of conservative Spanish labor reforms
In 2015 the employees of the Catalan Government and related institutions and public companies will receive their full salary once again after having suffered a 7.5% reduction over the last 3 years. The Spokesperson for the Catalan Government and Minister for the Presidency, Francesc Homs, announced the measure on Tuesday, after the weekly Cabinet meeting. Furthermore, the Executive will also stop the 15% reduction of working hours and salary of temporary workers in the public sector. Those austerity measures were approved in the 2012 budget as a drastic way to cut public spending in order to reduce the public deficit. The Spanish Government has been unilaterally imposing strict deficit targets on the Catalan Executive while it maintained an unfair inter-territorial fiscal scheme with Catalonia and reduced its resources. In fact, the Spanish Government and most of the other Autonomous Communities did not reduce public salaries in the worst years of economic crisis, while the Catalan Government was the first one to launch the ambitious austerity plan.
Catalonia is the only Autonomous Community in Spain to have registered a decrease in wages, as it was also the only one to have public employees' Christmas payment – equivalent to a month’s salary – entirely eliminated in 2013, according to the latest Quarterly Labour Cost Survey issued by the Spanish Government. Hence, while Spanish wages have increased by 2.1% in 2013, the wages of Catalan employees have continued on a downward trend continued o, falling by 0.7% at the end of December 2013 compared to the last quarter of 2012. The average salary in Catalonia stood at €2,133 per month, returning to 2009 levels, when it had amounted to €2,119. Labour costs, which group the employee salary and social costs assumed by companies, have also fallen by 0.4% in annual terms in Catalonia whereas they were up by 2.1% in Spain.
A grant allocated to the poorest, which is supposed to be their only income, was not paid regularly on August 1st as the Catalan Government changed the payment method. The official explanation is that the change was taken to avoid fraud and be able to ensure the sustainability of this grant system. From now on, the 37,000 beneficiaries will have to personally go the bank with a pay check that will be sent to them. In mid-August, most of the beneficiaries had already received the money. The opposition has heavily criticised the Government, which has recognised errors but stressed that many people were getting money without meeting the conditions. 500 beneficiaries and social workers protested on Thursday in Barcelona.
The two main trade unions have announced a general strike against the job market reform planned by the Spanish Government. This reform has been discussed among the trade unions, business associations and the Spanish Government for more than 2 years.