Calviño opens the door to an SMI rise for the last two months of the year

The Government has finally yielded to the pressures of the Second Vice President and Minister of Labor, Yolanda Díaz, and will resume the increases in the minim

Calviño opens the door to an SMI rise for the last two months of the year

The Government has finally yielded to the pressures of the Second Vice President and Minister of Labor, Yolanda Díaz, and will resume the increases in the minimum interprofessional wage (SMI) as of September. The Vice President and Responsible for Economic Affairs, Nadia Calviño, has indicated at the press conference after the Council of Ministers that economic recovery is reaching a rhythm in the labor market that will allow this measure in autumn.

Calviño has indicated that the number of people affected by dossiers of temporary employment regulation (ERTE) is reduced by "sustained" and that today it includes 450,000 workers. These people do not compute as unemployed. The unemployment rate provided by the Government at the end of the year will be around 15%.

Calviño has been very optimistic for the recovery of the labor market this summer since, "on the July average, 90% of the net used employment could be recovered as a result of the shock" caused by restrictions to combat the coronavirus. "If this positive trend is maintained, in autumn levels of employment will be close to February 2020", that is, levels prior to the pandemic.

For this reason, the person responsible for economic affairs has advanced that predictably, the conditions will occur to meet the requirement of Yolanda Diaz and the unions, which is to increase the SMI. "In September we will see if it is possible to resume the path of the SMI increase. Continue advancing towards 60% of the average salary."

The request of the Labor Manager and the unions relies on a study prepared by an expert committee and demand a retroactive rise until last January, when Calviño decided to stop the increase of these salaries in a loud shock with Diaz.

The Vice President has confirmed his intention as he has introduced an important nuance. The government has underlined, "will consider the possibility of uploading the SMI in the remainder of the year." That is, the increase it would approve the government would occur based on the approval of the measure and would not recognize the previous 10 months.

Updated Date: 27 July 2021, 09:44

You need to login to comment.

Please register or login.

RELATED NEWS