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Does Antonio Garamendi’s proposal make sense?

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A different minimum wage in each territory: does Antonio Garamendi’s proposal make sense?

The president of the CEOE advocates the establishment of a differentiated SMI in each territory because the cost of living is not the same in all regions of Spain

BY RRHHDigital, 10:08 – 02 September 2021

Madrid and Cantabria, Barcelona and Extremadura, the Basque Country and Murcia … What do they have in common? Many things. Among them are the autonomous Spanish communities. But what makes them different? Many aspects also differ from each other, but economically speaking the cost of living is not the same in any of them. Therefore, we ask ourselves a question: Would it be wise to apply a different SMI for each territory?

This was raised by Antonio Garamendi, president of the Spanish Confederation of Professional Organizations (CEOE), who advocates a legislative change that allows for the application of minimum wages differentiated by territories and to adapt it to a “diversified Spain”. . The different cost of living from one region to another is obvious, which is why the CEO of CEOE has committed to an SMI “coupled to each territory”, as he acknowledged in a press release to Capital Radio.

All this within the framework of negotiations between labor, unions and employers’ organizations which started with distant positions. In fact, Garamendi himself said last Wednesday that “now is not the time”. In his statements to Capital Radio, he insisted that the rise in the SMI could mean a “significant contraction in employment” and, therefore, stressed that the SMI is adapting to each Spanish territory.

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