September 24, 2020

The average salary increase agreed in the agreement until July was 1.94%, the lowest increase since 2008


Madrid

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The average salary increase agreed in the collective agreements registered in the first seven months of the year stood at 1.94%, the lowest increase since 2018 and a figure 1.36 points higher than the advanced interannual CPI for July (-0.6%), according to provisional data from the Ministry of Labor and Social Economy.

This salary increase is below the guidelines set forth in the Interconfederal Collective Bargaining Agreement (AENC) 2018-2020, which raised salary increases of around 2% plus one percentage point linked to concepts such as productivity, business results and absenteeism.

Work has stressed that it must be taken into account that On March 14, a state of alarm was decreed in Spain due to the health crisis derived from the coronavirus, “So it is possible that from that date both the rate of registration and some other variables related to collective bargaining will be affected.”

Specifically, until July there have been 2,626 collective agreements with economic effects in 2020, of which only 188 were signed in the first six months of the year. The rest, 2,438, were signed in previous years, although their effects are also showing this year.

The new agreements signed up to July have registered an average salary increase of 1.69%, below the AENC guidelines, while those signed in previous years present an average increase of 1.95%. Adding both, the average salary increase of all the agreements with economic effects for this year was 1.94% in the first seven months. The 2,508 agreements registered up to July covered 6.9 million workers.

From the set of agreements, 1,982 were from companies, with effects on 426,639 workers and an average salary increase of 1.64%, and 644 were sectoral agreements, which covered just over 6.47 million workers, with an average wage increase of 1.96%.

Regarding the 188 new trading units signed up to July, 144 were company agreements, with an average salary increase of 1.63%, below the 1.64% agreed in agreements from previous years, while 44 were sectoral agreements, which reflected a salary increase of 1.7%, below that registered in agreements signed in previous years (1.97%).

The half-day agreed in the agreement has been until July in 1,754.86 hours per year per worker (1,725.38 hours in company agreements and 1,756.8 in higher level agreements).

The number of derogations from the agreement falls

The Labor statistics have further revealed that Up to July, there have been 369 non-applications of agreements, half the number in the same period of 2019 (755)At the same time, the workers affected by said ‘dropouts’ decreased by 18.6%, to 14,033 workers.

Only in the month of July 1,133 workers have been affected by non-application of agreements, a figure that is 29% lower than last year.

The ‘off-hook’ of the agreements supposes the review of working conditions in companies. The 2012 labor reform, which celebrated its eighth anniversary in February, made it easier for employers and workers to agree on these derogations.

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