President Rosell of the Confederación Española de Organizaciones Empresariales (CEOE), an organization of employers in Spain, will not renew the labor union requirement to distribute profits in accord with a salary agreement signed in 2010 and in effect until 2012.
"We are not going to distribute earnings," said Rosell, who argued that small and mid-size companies are using this money for refinancing at a time when credit markets are dry. Further, she explained that it is not bad that the businessmen are profiting. It is also beneficial that they will be paying more taxes, she explained during a press conference designed to share comments on the state of the Spanish economy.
In sum, the CEOE acknowledged the need to extend the salary agreement for several years in order to smooth out salary changes. But Rosell pointed out that currently the parameters that are set in place to contain salary spikes are not working. In 2011 the recommendation was to increase salaries incrementally between 1% and 2%, but they have jumped 2.65% a month since July.
