CEOE and UGT, contrary salary proposals for overcoming the crisis
| Date: March 12, 2010 | Source: Europa Press |
| Category: Economy | |
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Loading ... The president of the Economic Committee of the CEOE , Jose Luis Feito, says that "the more falling wages per worker and hours worked, the greater the potential for increasing employment and stimulating productive activity."
This was stated in an article on Feito 'The crisis, labor costs and employment' published in the Journal of the Madrid Chamber of Commerce.
Feito insists that it is necessary to contract wages in Spain to promote competitiveness and accelerate economic recovery, then, in his opinion, is "indispensable" nominal wage costs per unit of output will grow less than those of competitors Spain.
To this end, it proposes that wage growth is below that of competing countries or Spanish productivity grows above his. Nevertheless, it requires that short-term and being in recession, the only way to increase productivity is falling employment falls more than GDP.
In this sense, explains that employment declines more or less than GDP due to the increase or the containment of wage costs, noting that real increases these costs in 2008 and 2009 (with 2.3% and 4% , respectively, compared with 0.1% and 1.1% of EU average) has "exacerbated" the job losses during the crisis.
This, he said, is the cause of job losses in Spain has been three times the European average.
"In an economic crisis, the more downwardly rigid real wages are, the lower the chances of medium-term growth of these wages," he says.
STOP PRESS A VERY LOW WAGES.
He also notes that a very high unemployment figure just for exercising, sooner or later, a "powerful downward pressure on real wages" and therefore concludes that, "or meet the low real wages, or intensify the loss of employment inherent in the crisis. "
Feito indicates that unemployed workers lose productivity in proportion to their lasting unemployed and, therefore, paid on average only be repositioned to reflect the lower productivity.
"There is no shortcut to raise real wages without being by way of increased productivity of workers (...) If the wages exceed the average productivity of workers employed, it will reduce employment and real wages," she warns.
The president of the Economic Committee of the CEOE means "must" avoid the downward rigidity of wages to prevent that happening in the future if another economic downturn, "the insensitivity of wage costs to change back to step cycle job losses. "
CRITICAL UGT CEOE PROPOSALS
In this regard the statements of the CEOE, the secretary of the UGT union action, Toni Ferrer, said that beginning to be "obscene" that the CEOE argues that passes out of the recession cut wages only.
The union representative has Feito considered "passive" how to improve business competitiveness since, unable to devalue the currency, which proposes, in short, is a "wage devaluation".
Also branded as "outrageous" that the president of the Economic Committee of the CEOE out with them when a little over a month your organization signed an agreement with unions, to collective bargaining, which bets on recovery economic and employment by boosting consumption and investment, to be a fundamental part of this moderate growth of wages.
UGT today stressed the wage growth as a factor "key" to recover consumption and public confidence in the Spanish economy.
In this context, the organization led by Colin Campbell stressed the importance of 'Employment Agreement and the 2010-2012 Collective Bargaining' (NCSA) signed by unions and employers.
The agreement, he explained, is an "essential tool" for economic recovery in Spain, since, according to UGT, "with him has made progress in the protection of workers both in terms of working conditions and salary employment in ".
The union said in a statement to assess the February CPI data, also requested to maintain current stimulus to the economy and employment and develop public policies that promote economic activity while recovering consumption and investment.
The debate remains open views ... What do you think about it? What lobby is right and what is wrong? What else can you think out of the crisis? We await your comments ...
