UGT warns that not raising wages with a CPI of 8.7% is a "ballast" for the economy

MADRID, 30 May. (EUROPA PRESS) -

UGT has warned this Monday that not raising wages with a level of inflation like the current one (8.7%, according to data advanced by Statistics) is a "ballast" for the Spanish economy and for the purchasing power of workers and of the families.

The inflation situation is, for UGT, "very worrying", because the impact on the price of energy, food and metal raw materials from the war in Ukraine, is now added "the aggravation of the bottlenecks of the chain global supply", produced by the closure of many cities in China as a result of the 'zero Covid' policy imposed by its authorities.

The union denounces that the continuous increase in the price of the shopping basket, together with the moderate wage growth (2.4% agreed in the agreements until April), "are restricting the purchasing power of households, which has a negative impact on the demand and growth of the Spanish economy".

UGT warns that "the current inflationary trend is not going to be significantly reduced in the coming months", since the underlying inflation rate, "the best reflection of structural inflation, does not stop increasing month by month".

"It is no longer enough to just wait for the temporary shock in energy prices to end. Given the situation, it is necessary to act to protect the purchasing power of working people, in order not to cause a serious economic contraction", defend the union.

The organization led by Pepe Álvarez recalls that, "in the face of the employers' refusal" to negotiate a new contract agreement, the union is committed to reference wage increases of at least 3.5% in 2022, 2.5% in 2023 and 2% in 2024, with the inclusion of salary review clauses that protect purchasing power.