Disconnecting wage increases from CPI is one of the major injunctions made by Brussels in the name of internal devaluation, judged as inevitable for the country to renew with competitiveness. And Spanish businesses that are doing well are all dreaming of this. The new collective agreement signed by the management and unions of the Spanish retail chain, Mercadona, provides for a schedule of wage increases that won’t be tied to inflation as well as a series of measures to favor work-life balance. Mercadona, which provides for at least 1,000 new jobs by 2018, is thus becoming the first company in Spain that makes a profit to disconnect inflation from its wage increase scale. (Ref. 130764)
The UGT and CCOO union and the management of Mercadona have signed the company agreement 2014/18. Here are the key novelties of the text, which will come into force on January 1, 2014:
- The starting salary for new employees will amount to €1,260/month (gross). Wage increases for 2014-2018 won’t be linked with CPI. The agreement provides for a gradual wage increase, which will go from +0.4 percent in 2014 to +0.8 percent in 2018. Within this range, pay will be determined by the management and
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