Díaz asks Calviño to link the observatory of business margins with the rise in wages

The Vice President and Minister of Labor, Yolanda Díaz, disagrees with Nadia Calviño on the functions of the observatory on business margins and with José Luis Escrivá on the relaxation of the conditions to regularize foreign workers.

Oliver Thansan
Oliver Thansan
22 May 2023 Monday 11:39
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Díaz asks Calviño to link the observatory of business margins with the rise in wages

The Vice President and Minister of Labor, Yolanda Díaz, disagrees with Nadia Calviño on the functions of the observatory on business margins and with José Luis Escrivá on the relaxation of the conditions to regularize foreign workers. Double discrepancy that has been revealed in her statements this morning.

On the one hand, regarding the observatory of the profits of the companies that the Ministry of Economy is finalizing, Díaz affirms that he has to observe the margins of the companies, but "we want to link it to the salary revaluations of the workers." He has added that it does not work for him as proposed due to a question of competitiveness, on which the data is already available. Yolanda Díaz's objective is clear, to link the benefits of companies to salary increases.

"From minute one, this ministry has said that the cause of inflation was not wages, but corporate profits," he stated, insisting that if up to now the margins are used for the distribution of dividends, "they do not look identical improved wage income”.

As stated by the Ministry of Economy, the observatory must serve to maintain effective competition in the markets for goods and services and an adequate distribution of income. As reported by La Vanguardia, it will be operational "after the summer at the latest", and it will not require requesting new data from companies, but rather it will work with those already available from the Bank of Spain, the INE and the Tax Agency. Based on this information, it will provide quarterly reports that will show the margins of the companies by sector, although they also recognize that the coverage is very different depending on the area, with more detail in the sectors with the largest number of companies and, on the other hand, with much less. in which SMEs and the self-employed abound.

On the other hand, the discrepancy with the Minister of Inclusion and Social Security, José Luis Escrivá, comes from his intention to lower the requirements to facilitate the regularization by roots of migrant workers who have been in Spain for two years in this situation. The regulation in force since last summer is giving results and there have already been 22,000 requests from emigrants who want to opt for this training to legalize their situation and enter the job market.

However, Escrivá is in favor of relaxing the requirements that are requested, basically through training courses, which is a difficulty for many, especially for women. "They have let us know that unfortunately there are people, especially women, who, due to their reality, find it very difficult to take such long courses and do them in person and they have asked us to include the possibility of doing distance courses, on weekends and to reduce some hours", Escrivá stated.

The approach of Vice President Yolanda Díaz is radically different, and affirms that if there are vacancies in some sectors of the economy, the solution is to improve working conditions, which employers must offer in key sectors of the economy with adequate conditions for deploy the labor market efficiently. "I think that the accent must be placed on the working conditions," said Díaz.