EconomyThe Government refuses to freeze the SMI and summons...

The Government refuses to freeze the SMI and summons businessmen and unions to discuss the rise on Tuesday

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The Government rules out freezing the SMI as requested by the employers and summons the social agents on Tuesday to discuss a rise that will hardly reach the 5% demanded by the unions.

The Government has decided to start the round of consultations next week prior to its decision on the update of the Inter professional Minimum Wage (SMI). The Ministry of Labor has summoned the social agents next December 15 to present their proposal regarding the minimum amount that any worker should receive from 2021, a decision that is consultative in nature with employers and unions.

Compared to the current 950 euros, the maximum range for 2021 is between the freeze and the 1,000 euros demanded by the unions, which represents an increase of 5.2%. And the most relevant references to make a decision are the 0.9% that will increase the salaries of public employees and pensions. With this rise, the SMI would be at 958.5 euros.

The minister Yolanda Díaz He has attended an interview on TVE in which he has advanced that his proposal is to raise it from the current 950 euros. DÃaz has not specified a specific amount of rise until, he pointed out, listening to the proposals of the unions and employers at the negotiating table.

According to the demonstrations made by social agents in recent weeks, the announced rise already places businessmen on the opposite side to the proposal. Antonio Garamendi has warned this week that it is not for the work of supporting an increase in minimum wages given the critical situation of the economy, companies and Spanish workers. In the opinion of the head of CEOE, the priority should be focused on recovering the destroyed jobs since the companies that are suffering the restrictions caused by the pandemic “regain their space.” On the side of SMEs, the president of the employer, Gerardo Cuerva, is of the same opinion.

On the union side, DÃaz’s proposal does not attract support until it is known what the announced rise translates into. CCOO sees positive rule out freezing, although his proposal almost doubles the increase that will be applied to pensions and public salaries in 2021 by indicating that a similar increase to the 1.5% that is currently being agreed at the social dialogue tables should be established and that they would raise to 964 the SMI. For its part, UGT has warned the minister that she must fulfill her commitment to raise the basic salary to 1,000 euros as part of her commitment to end the legislature at 60% of the average salary. All in all, union sources indicate that a medium term, around 970 euros, it would be enough to count on your support.

But, in reality, whatever the social agents think, the reality is that the decision depends exclusively on the Government, which can establish the increase in the SMI as it sees fit without the need for the approval of employers and unions. This was the case in 2018, when after arriving at La Moncloa, Pedro Sánchez applied a 22% increase, up to 900 euros. Last year, however, Yolanda DÃaz inaugurated her round of corporate agreements with a solemn signing ceremony for the 5.5% increase in the SMI that was attended by CEOE, Cepyme, CCOO and UGT. This time it seems more difficult for him to be able to please everyone and re-edit the ceremony.

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