crisis Pensions, wages and collective bargaining in 
PDF Document "Economists from another galaxy" The recipe is not new nor original. The voices closer to neoliberalism in and out of the PSOE government are gaining more clout and its requirement is clear and precise: we have to review the public pension system by lengthening the entrance age to retirement to 67 years and is necessary to lower wages in order to improve productivity rates of the English economy. On the pension reform debate is open and is particularly relevant today, having the media attention focused on extending the retirement age while the government's proposal contains a number of other equally regressive measures for the working class. For example, proposes to extend the period for calculating the contributions required to generate a pension, from the current 15 years to 25 years. The document also reinforces the role of complementary social security, opening the way towards the consolidation of a mixed system of social protection on the one hand, a weak social security and merely welfare and on the other hand, an alternative social protection of private initiative. In this sense, is acceptable complementary social security tied to company pension plans with union control but we can all aspire to the Anglo-Saxon model of pension based on the need for hiring private pension plans. That claim seems to be the central government and that when reviewing a lower public pensions continue to be funded private pension plans of the highest incomes.
But really in danger the public pension system in Spain?. The review of the Toledo Pact proposed by the central government refers to the sustainability and the future of the system, not in vain, on this guideline was cemented the first agreement signed in 1995. Concern for the future of our public pension system is not only legitimate but necessary, and in recent years the trade union movement in particular has been CCOO responsible with the situation. For example, should explain that the pension system has been flexible in recent years so that has allowed early retirement with penalty and retirement beyond age 65 with a slight bonus. However, we noticed this time deliberately disproportionate analysis of government to foster a climate of fear among the population English on the future of pensions. The situation, however, is different and not so dramatic. Note that the Social Security in 2009 recorded a surplus of 8.502 million euros and in 2010 provided one of 2,000 million euros. Coffers, therefore, appear to be sound.
At the same time, the government questioned the future viability of the pension system because of the extension of life expectancy among the English population in the period 1980-2005, having increased from 76 to 80 years. Of course this argument is half true since the improvement in life expectancy of the English in the past 25 years has been due not so much that pensioners live four years but a significant reduction in infant mortality. By contrast, nothing is said about the difference of 10 years of life expectancy in Spain between the richest and the poorest, this being 7 years in the European Union.
Ultimately, the government tries to sneak a pension reform by way of reducing costs when the debate should be on income. Under the pretext of saving the public pension system is sought to harden the calculation period and access requirements for a pension, "mileurizar" higher public pensions and social protection guidance to the private company who can pay, deductible up to $ 10,000 per year in income tax. The basic objectives are likely to be them and not so much to extend the retirement age to 67 years, a proposal obviously unpopular government which has served to shield the media to publicly transcended no other proposals that continue to be the essence of proposed revision of the covenant of Toledo.
Unlike pension reform on the wage issue has not been theorized and somehow both the debate has gone largely unnoticed. The guru and economist, head of Zapatero, the Nobel Prize in economics in 2008, Paul Krugman, warned at the time that Spain should undergo to a profound internal devaluation of wage and price cuts to get out of the economic crisis and could not expect aid from the European Union. In parallel, the European Commissioner for Economic Affairs, Joaquin Almunia socialist, warned earlier this year about the need to take into account the low productivity of the English economy to the calculation of wages, preventing wages are above productivity, as Joaquín Almunia circumstance that would cause the loss of competitiveness of the English economy. The fact is that in recent years, wages have not been above productivity, let alone the benefits of companies, but rather the contrary. Recall that in the boom years of the English economy during the period 1999-2006 corporate profits rose to 73% while the working class lost purchasing power, around 4% less. That is, not only increased corporate profits over wages, but that the difference between them was truly abysmal.
The classic recipe, and used over and over again during the post-92 crisis, was to devalue the national currency. But of course this is impossible since disappeared as the peseta and the euro came on the scene, and as it was not possible to devalue the currency found the solution to implement the snip on the wages of the working class. That has been for years the ministry of finance manual and the employers stuck in a customs and ways of development of the 60's. Never heard the warnings of economists away from the single thought, which Felipe Gonzalez accused at the time of "not being on the left nor right but simply another galaxy."
Once the housing bubble exploded and collapsed like a house of cards the fragile structure of the English economy, based on speculation and construction, the apostles of the competitive set of new attention on wages. The task was to cut back wages in order to gain competitiveness. But competition with whom?. Of course, not with Germany, France or Great Britain, three countries with wages well above the English salaries and yet we also gain in productivity. But when in Spain talks about improving productivity, but we think the reduction of wages as virtually the only alternative. No mention of increasing productivity with a new economic and industrial policy to give its mid-term results suggest investing nor fiscal policy over the past 20 years have left the public finances as weak as a geranium before the hurricane crisis economic. From CCOO years ago that has emphasized the need to foster a more productive model faces the industry as a strategic sector, R & D + i, and the inclusion of activities of a higher added value. This gain in productivity. No need to migrate to another galaxy.
"In economics the majority is always wrong" The episode of the wage freeze Seat clearly demonstrates how in times of economic crisis requires a reference to mark the way forward. In early 2009, after passing under the XVII collective agreement in force between 2004 and 2008, wages of workers Seat is frozen in the absence of a new convention regulating wage increases according to CPI developments. Recall that in 2009 the central government does not release the inflation forecast, a reference that in recent years had been at 2%, in line with inflation targets of the European Central Bank, which was associated in wages for most collective agreements. The same collective bargaining agreement Seat XVII reference using inflation forecast to wage revision clause to adjust the real wage increases to the CPI. But in 2009 no new collective agreement Seat, or ongoing negotiation process, and therefore no wage increase, a context that will build the direction of the company to make the viability and future of the brand to the reduction of labor costs.
At this juncture, in February 2009 the CPI stood at 0.7% annual rate to drop by 0.1% over the January CPI. According to INE (National Statistics Institute), the annual rate of February 2009 marked the lowest level in the last forty years, in a drift that were supposed to lead to deflation and the consequent collapse of the IPC. In view of the situation, Seat address immediately moves its pawns. On 26 February at the heart of a works council, and after an intense media campaign in the press management informed the unions of the possible Seat Audi Q3 manufacturing plant in Martorell is conditional on reducing costs and increasing profitability of the Group Seat. In particular, the direction of Seat, and in tandem with the guidelines from Volkswagen, offers social representation the following steps to change the allocation of the new model:
• Maintaining employment in the next two years (2009 and 2010 .) • Freezing wage
templates Seat Group for two years (2009 and 2010).
ERE • Presentation of a temporary two years (2009 and 2010) subject to the allocation the new model and to manufacture it (2011).
• Investment of 300 million euros for the production of the Audi Q3.
Interestingly, the same Section February 26-Seat UGT Association publishes a newsletter in which not only echoes the proposals of the management of the company but acts as spokesperson for them. The UGT on his resume suggests that while the rest of the companies business addresses
not just settle for a pay cut, but slim their staffs all they can . Therefore, the UGT says the situation is different
Seat and we're talking about making a new model and secure employment in the Seat Group in exchange for a two-year wage freeze . And it is clear what the position of UGT, in the penultimate paragraph asserts:
Given these and other perspectives UGT assess the best way to safeguard jobs, even with the sacrifice of the entire workforce as This is solidarity with commitment to future, not demagoguery which we could drag and lead to unwanted situations, at least by the union . Among
Seat address and UGT was paving the way for two years to agree to freeze wages. Moreover, in March of that year the CPI falls sharply and exceeds the threshold of deflation, putting the annual rate at -0.1%, ie in one month CPI declined by 0.8%. It was without doubt the best scenario to justify a wage freeze agreement with the consideration for the award of a new model. On March 9, the Committee meets Intercentre Seat and address of the firm applies to the social representation which is his response to the proposals on 26 February. The UGT responded that excessive even considering the proposals of the company,
understands that the priority is to seek solutions that could prevent irreversible for all the staff even when it is satisfied by information received from VW, the new model has not yet been awarded .
said, the UGT plans to maintain the pay scales of 2008 in 2009 and an increase of 50% of the inflation forecast in 2010. By 2011 the UGT proposes a salary increase based on the CPI, with a possible rate to negotiate on the basis of actual CPI 2009 and 2010, and taking into account the economic situation of the company. Finally, in 2011 the UGT offers the perception of pay are not subject to consolidated and company financial results with a minimum of 200 euros. With that, the UGT proposed a wage freeze and a full-fledged recovery in purchasing power always subject to the income statement of the company. Add the UGT proposed holding a referendum Seat template to legitimize its raft of proposals on wages.
Against this, the position of CCOO at works council on March 9 was to demand that the workforce of the Seat in no case lose purchasing power consolidated in tables throughout the term of agreement (actual CPI 2009, 2010 and 2011). Also, since the perception CCOO proposed for the agreement of the amounts left to enter under the review clause XVII of the Collective Agreement, calling for the reactivation of the same clause once the term of the agreement in 2012. Respect to the referendum, from CCOO, and even agreeing with the consultation of staff, warned of the need for a clear question and that the wording of it is decided within the works council.
At the time, UGT
the proposal did not guarantee the recovery of purchasing power in 2011 after two years of wage freeze because the recovery was not consolidated in pay scales and because it was subject to the positive evolution of financial results the company. Contrary to the UGT, CCOO
the proposal required at all times not lose purchasing power during the three years of the possible agreement, consolidating tables wage increases and without subjecting such a requirement the company's economic balance.
March 18 referendum was held on the proposal that the voting being presented to the Committee UGT Intercentros the day 9. In the days preceding the consultation, the UGT was commissioned to stoke fear among the staff to put a wage freeze as the only safe alternative to layoff thousands of workers Seat Group. Even in the media Seat referendum led to the profusion of polls and daily chats with the obligatory question:
"between the salary freeze and lose the job, what would you choose?. Because in reality, the referendum of 18 is presented as a choice between wages and employment. All springs, union, business, media and politicians, amplified the thunderous echo of the fear of future layoffs and Seat as a brand viable. The March 11 editorial in El Periódico de Catalunya (The template Seat is the word) read as follows:
While we understand that the union dynamics are complex businesses and workers in general are greatly affected by this deep crisis, would be a disgrace to miss this chance for a slight loss of purchasing power of the template. Times are very hard and all parties involved should keep a cool head for the social costs are the least possible .
As expected, the referendum was used by the UGT was given a bath of masses and for the wage freeze proposal met with broad support. The yes vote won 65.17% of the vote compared to 31.3% of votes against and 3.5% of null or blank votes. JK Galbraith said: "In economics the majority is always wrong" and without giving or taking away the right to distinguished Canadian economist, and even Having opposed the wage freeze proposed by the UGT, we believe the reaction of most of the template Seat was understandable. When a template is placed the sword of Damocles to choose between freezing the salary or job loss is expected to choose the first option. What is not so understandable was the casualness with which UGT accepted the arguments in favor Seat address wage restraint in return for a hollow promise. Because it is illusory to think that making the Audi Q3 due to the template Seat has frozen wages for two years. In Seat payroll template represents only 7% of the final product and in particular the wage freeze for 2009 and 2010 was supposed to address low savings Seat 5 million euros, in a higher estimate. Clearly
that the allocation of production from one model to a workplace, there are still a number of other criteria, whether in the area of \u200b\u200bcost savings as in technical and vocational. The first, we must note a fact that is irrefutable: the real cost savings for Seat has not come from the wage freeze but the financial grant received from the public, around 300 million euros in aid concept automotive (
Competitiveness Plan Automotive Sector) approved by ministerial order in 2009. Aid, which incidentally, are subject to the non-implementation of layoffs in the coming years part of the target company. Remember
two proposals that address presented at the Committee Seat Intercentros February 26:
• Maintaining employment in the next two years (2009 and 2010).
• Investment of 300 million euros for the production of the Audi Q3.
Interestingly, the investment of 300 million did not come from the coffers of the company but to the administration, received just 300 million plan competitiveness of the automotive sector with the condition not to implement layoffs and therefore to maintain employment. But the most tragic was that in January 2010 address Seat unilaterally decided the dismissal of more than 200 workers indirect staff.
Regarding the criteria of technical and vocational, recall that it was the president of Audi, Rupert Stadler, who admitted that the reasons for assigning Seat Audi Q3 was due to the quality, productivity and skills of the plant Martorell. The announcement was made public on 21 April via the intranet of Audi about a month after the referendum, completely dismantled a widespread perception that the move manufacturing Seat model would be possible by the wage freeze. If Seat racing plants and Gyor (Hungary) and Bratislava (Slovakia) at the time of making the Audi Q3 it is clear that the advantage lay in the quality Martorell and qualification of the plant and less on labor costs. Seat the wage freeze is not just a political issue, a strategy to condition the negotiations of the next collective agreement. And XVII in the negotiation of collective agreement, one of the objectives of the management of SEAT was to cut the wage bill of staff via suppression of wage revision clause and plus public holidays. Seat wage freeze is a political issue as is the salary they rise to the German workers Volkswagen. In September 2009 the management of the multinational reached a settlement with the German trade union IG Metall by which increased by 4.2% the salary of the 95,000 employees of Volkswagen's six German plants. Must conclude that the consortium is not equal to the colonies to the metropolis or have to think that indeed the salary does not determine the industrial feasibility and production volumes in the workplace Volkswagen Group.
I say unambiguously:
the experience of a wage freeze in Seat has been and is an unprecedented fraud . That's something we can not ignore or make up, especially when we are in 2010 and staff has not seen improved their earnings in terms proposed by the UGT for this year: 50% increase of the inflation forecast. This, together with the dismissal of January 2010 has fueled a sense of union and political weakness against the arrogance of the company, which, with or without opposition, to make its way and reaching the goals proposed. From the Seat union movement and from the institutions have made mistakes and now it is correct. There have been so wrong and time has shown. And if most of us understand the UGT, the Generalitat de Catalunya, the central government, the media and the general public, because we have to give, much to our regret, the reason JK Galbraith.
"Collective bargaining is our objective" As mentioned in previous lines, we are in 2010 and the template continues to lose purchasing power Seat without having received even the salary increase proposed by the UGT in the works council in Intercentros Committee of 9 March 2009 and ratified by the template in the referendum of November. Of course there will have to explain to workers that do not exist Seat of the Audi Q3 agreements since the very direction of the company stated that the proposed wage freeze for 2009 and 2010 accepted March referendum did not meet the raised by management in the Committee of 26de Intercentros February (
Intercentros Committee minutes of March 20, 2009 ). In any case, if today the template Seat still suffering the freezing of their salary level, should the proposals not only broken, but the lack of a new collective agreement regulating wage increases since 2009. Given this situation, it is seen as urgent a priority negotiating the Collective Agreement Seat XVIII
The collective bargaining agreement can not be delayed any longer and must take as its central theme the recovery of lost purchasing power during 2009 and 2010 . Is the time and the overall situation and industry should not be an obstacle but rather a stimulus.
believe that the best instrument available to the working class and trade unions to tackle the economic crisis is collective bargaining . This follows, for example, the recent Agreement on Employment and Collective Bargaining in force for the period 2010-2012 and which will improve the level of wages of millions of workers in our country. The agreement provides wage increases and an upward developmental trend: 1% in 2010, from 1% to 2% in 2011 and between 1.5% and 2.5% in 2012, including the activation of a wage guarantee clause who will use the difference between salary increases agreed in the collective agreement and the actual inflation. The agreement is a step forward in a context of economic crisis and job losses while claiming the role of collective bargaining as a tool for social progress after a year like 2009, characterized by the blockade by the employer's collective bargaining and the wage issue.
The agreement signed at the confederal level should serve as a stimulus to activate the negotiation of the Collective Agreement Seat XVIII. A company like Seat can not be an oasis in the existing framework of social dialogue and even less in the pay gap, a factor that historically Seat had differentiated, giving a company profile in a salary above the industry average. Nor Seat union action can not be related to the strategy that emanates from the confederal wage. Whereupon, in Seat our union has to claim that which is claiming CCOO in other companies and sectors: the negotiation of the collective agreement. That is our goal. Because the collective bargaining agreement is the only way to prevent the staff continue to lose purchasing power. And after the fiasco of the wage freeze, where CCOO held a position as a union of class, we propose that the process of negotiating a new Collective Agreement is led by CCOO.
We need a union inclusive and internally cohesive and disciplined organic, understanding organic as the result of a participatory and pluralistic debate. CCOO need the heirs of the labor struggles of Seat and adapted at the same time, sociological and generational change that has occurred in Seat in recent years. A union must evolve as society evolves, the working class and its own membership. Likewise, a union must also evolve as the world evolves from the company, which has nothing to do with the old Fordist company, or organizational level nor productive. Said Ignacio Fernandez Toxo in IX CCOO Confederal Congress could not continue to lead the union with the same concepts that 15-20 years ago because the reality was very different today. That is a challenge that has faced and overcome CCOO Seat on the way to a new stage of association. Ultimately, only the reference of a strong and solid CCOO may face the maximum guarantee for the negotiation of the Collective Agreement XVIII, a process that sees hard and complex. It is therefore time to move on the offensive and to be firm in defending the interests of the working class Seat.
recovery of purchasing power in 2009 and 2010, the regulation of wage increases for the coming years with reference to the inflation forecast and wage revision clause as the actual inflation, maintaining a 100% plus a holiday, the dignity of the category of income (salary level specialist or officer of 3rd), voluntary activation of triennia staff hosted since 2002 the Group's pension plan Seat, the adequacy of flexibility agreed at the XVII collective agreement regulating the workload (can not negotiate with the workers' health and can increase productivity at the expense of the worker) or the expansion and improvement of paid leave are some of the proposals put to work from CCOO in line with our approved documents collectively and the staffing needs of Seat. Pedro Luna
Antúnez. Member of the Executive and Council-Seat Intercentre CCOO. Guarding
Óscar Martínez
. Council Member Intercentre CCOO-Seat.
Hospitalet de Llobregat, March 8, 2010.
