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Hacienda negotiates the rise of public salaries and avoids another front of conflict

Public employees will be able to charge up to 8% more in the next three years

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Hacienda negotiates the rise of public salaries and avoids another front of conflict

The government finds in unions consolation that does not give opposition parties. During this legislature, popular executive has barely managed to muster sufficient support to pass major reforms or laws, except agreement to pull forward budgets of 2017 and Public Procurement Act, which has precisely entered this Friday in force. PSOE, citizens and we can have left government alone in debate on pensions. The opposition defends a rise greater than that approved by executive, of 0.25%.

More information
  • The Hacienda is committed to city councils using 2017 surplus this year and next
  • Mayors will be able to spend surplus on more investments
  • The government leaves without spending 1.6 billion of pact with citizens

It is with unions with whom it has best managed to understand during 19 months that have elapsed since Rajoy opened this new mandate. With m, it closed last year an agreement against temporality in public employment, by which would summon oppositions for 250,000 places in three years. It also agreed to raise minimum wage to 850 euros by 2020. And with m has signed a "historical" agreement in words of Montoro. "Today is a good exponent that negotiation is possible and feasible over ideologies," he riveted.

The agreement will allow public service workers to gain purchasing power for first time in nine years. It collects a fixed rise of 6.1% until 2020. And anor variable percentage, linked to evolution of GDP and reduction of public debt that could raise wage improvement to about 8%. "This is first time this is produced. It is time for recovery to reverse its benefits for those who allow that growth, which are officials and workers of companies. "

The document signed by Minister and trade unions enables additional funds to enable public administrations to increase ir wage mass by 0.2 per cent in 2018; 0.25% in 2019 and 0.3% in 2020. Hacienda estimates that with se funds average rise could amount to 8.79%, although it is debatable that se funds can be accumulated because y are destined to implement plans to improve productivity, revise specific or targeted supplements to Specific collectives or contribution to pension funds.

To take note

Montoro asked employers and trade unions to "take note" and to reach a wage agreement in private sector as well. The agreement concluded by trade unions contains an axis to increase public employment offer and to increase rate of replacement — substitutions for staff-based jobs — to 100% for essential sectors, such as health and education, and 75% for or services . In addition, restructured municipalities will be able to raise up to 10% cash for sectors that require additional reinforcement.

One of points of document most celebrated by unions is flexibilization of working day. On one hand, communities are empowered to negotiate a 35-hour workweek. So far, Hacienda forbade it. In fact, it appealed to decisions of Andalusia and Castilla-La Mancha, which tried to apply it. On or hand, it allows to create a bag of free available hours of up to 5% of annual day, equivalent of about 82 hours. It will allow public employees to have 11 additional free days for reconciliation or care of dependent children or elders.

"A first step to recovering lost in years of cutbacks"

The trade unions representative of Public Service (CSIF, UGT, and CC OO) have shown ir satisfaction at an agreement that puts an end to a long period of crisis cuts. Julio Cosane, responsible for this sector in UGT, has indicated: "We were already playing. When economy fell we applied first cut and during years of crisis we lost 13.3% of purchasing power. " The Union manager added: "When he woke up, y said that it was not yet time to recover what belonged to us. Now that economy is going well and we are growing, we have not resigned and signed an agreement represents only beginning of restitution of our rights and reparation of damage we have suffered from public employees. "

Miguel Borras, president of CSIF, has abounded that wage agreement "is best deal" that could be reached. "The rise will always be insufficient, but it shields purchasing power." Delete has added: "We will improve living conditions of many public employees."

Pepe Fernandez, head of CC OO, recalled that "for first time in 10 years, a general agreement between unions and government is re-signed, continuing path that opened agreement to improve public employment last March". And he has pursued: "CC OO continues to claim return of rights snatched, until its total replenishment and today we take a step in that way". Although union leaders made clear ir satisfaction y warned that "it is only one step furr, that it does not imply a final point for wage debt, rights and employment that economic crisis" has carried ahead.


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