Maria José Aguiló, executive vice-president of the Mallorca Hoteliers Federation, says that the pay agreement between the federation and the UGT union will mean that, by the end of its three-year period (2027), salaries in the hospitality industry will have increased by 47% since 2014.
Over the same period, inflation, as determined by the Consumer Price Index, will have risen 32% (the actual rise plus an estimate through to 2027). The federation therefore maintains that workers will have gained some 15% in terms of purchasing power.
The financial crisis from 2008 had led to a virtual freezing of salaries. This began to be addressed in 2014, the greater leap in pay having been in 2017 when negotiations for pay under the collective bargaining agreement were unnecessary. The federation made an offer of 17% over four years. The unions, who had been angling for ten per cent, were not about to say no. Terms of that pay deal were to then be extended by two years because of the pandemic.
It was the 2017 increase that really exposed the differences between the employers. Restaurants and nightlife had to go along with it, as did small hotel groups. It was a deal that the larger groups could comfortably afford.
The 13.5% pay rise agreement between the federation and the UGT is a compromise, the starting points for the two sides having been 8.5% and 19%. But not all parties are happy. The restaurants have said they won't sign it, the nightlife association has yet to make a statement but is likely to back the restaurant employers, and the Menorca hoteliers say they will accept the deal but "with reluctance".
Manuel Sendino, manager of Ibiza and Formentera Hoteliers Federation, says there is "no doubt" that his federation will sign the agreement. He nevertheless accepts that "it will be more difficult for some than for others". "But it's clear that we have to make the sector attractive." In this regard, he points out that the rising cost of living in the Balearics makes it necessary to improve salaries.
The CCOO union, the junior union partner for the negotiations, has said that there would have been a better deal for the workers if it had been involved.
The various parties are scheduled to meet next week for a formal signing. Because the Mallorca federation and the UGT form a majority, the other parties are in theory bound by the deal. That meeting does not appear as if it will be straightforward.
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Burgundy BlueAsk Morgan
So, inflation since 2014 is 32%. Wages have increased by 47%. What about the 235% increase in prices charged by these restaurants and hotels over the same time period?
The *percentage* of pay increase versus 2014 is an irrelevance, unless you also calculate the increase over the same period of the true cost of living for workers in hospitality. Tourism and hospitality are booming, so why should those that enable the industry be pegged on poverty wages? Add that an increasingly cashless society is making tipping a thing of the past for customer-facing staff, so the promise of "plus tips" is also a nonsense these days. And business owners, if your business can't afford to pay staff a decent wage, you really don't have a business. Anyone can make money if you don't need to pay proper wages; it's called slavery.
The minimum wage at the time (under the PP) was around 600€ I believe, so it's not saying much. I expect some of pay increases were due to the minimum wage being increased 3 times by the socialists (the PP and vox voted against this every time).