Wednesday, October 1, 2014

The Governor of the Bank of Spain sees “absurd” the debate on … – Publico.es

The Governor of the Bank of Spain sees "absurd" the debate on … – Publico.es

“absurd” the debate about whether a wage increase within Spain. This was said Wednesday the governor of the Bank of Spain, Luis Maria Linde, who understands that this is a decision that depends on the situation of each company and can not be analyzed comprehensively.

general wage increase is one of the claims of the unions ahead of the renewal of the Agreement for Collective Bargaining with employers. A measure that, in its opinion, would help settle the economic recovery by increasing the purchasing power of households, which positively affect consumption, increasing domestic demand and thereby economic growth.

But Linde, during his appearance at the Congressional Budget Committee, said that the “philosophy” of labor reform has never been frozen wages but prevent “absurd” leading to company closures and rising unemployment figures.

“If companies make money, can and should raise wages” “We had a model that led to that,” he noted, after ensuring that the philosophy of this policy change is that companies go up the salaries of their workers if warranted and if they can. “If they make money, they can and should do,” he said.

In this regard, Linde has considered “absurd” to reduce the debate to whether it is time or remains, because some companies may start now to improve conditions for workers and others will have to wait a little longer or even have to take them down a bit. “If we do not change this chip, you do not understand the reform,” he concluded.

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