Spain to increase minimum wage to 1,000 euros
Madrid has announced plans to set the minimum wage at 1,000 euros for full-time jobs by the end of 2022. In the longer term, Labour Minister Yolanda Díaz hopes to fulfil the demands of the European Social Charter according to which the minimum wage should be equivalent to 60 percent of a country's median salary. Not all commentators see the left-wing government on the right track.
An effective measure against social inequality
The government is heading in the right direction, InfoLibre cheers:
“There are advances that should be celebrated, like a Nadal match or an Oscar nomination for one of our candidates. A minimum wage of 1,000 euros in Europe's fourth largest economy finally breaks a barrier. ... The pandemic has left a situation of inequality where the rich became 17 percent richer in 2021 while 27 percent of Spaniards remain at risk of exclusion, according to Eurostat. ... First the basic income, then the labour market reform and now the minimum wage serve to correct this unprecedented shock about which Caritas and other observers warn. How do the liberal gurus expect to get out of the crisis without protecting families?”
Jobs will be lost
Unlike with previous reforms, the decision to raise the minimum wage was taken without the sought-after consent of the employers' associations. This could start a dangerous trend, El Mundo warns:
“The problem with this return to unilateralism on labour issues is that Spaniards will pay the price for Sanchez's power games in the form of unemployment. ... The Banco de España has warned that reintroducing rigidity in labour relations will lead to a slowdown in recruitment. Of course, after the collapse of the labour market during the pandemic, jobs are now being created once more, but not as quickly and comprehensively as required.”