Spanish workers get inflation protection

Figures from CCOO, one of Spain's two major trade union confederations, show that 78.7% of employees covered by agreements either concluded or revised in the first two months of 2004 are protected against inflation being higher than forecast.

Spanish collective agreements often last for two or three years, and frequently use the government's forecast for inflation as a basis for increases. To protect workers against these forecasts being over-optimistic, Spanish unions have pressed for the inclusion of revision clauses in collective agreements to provide for retrospective payments if inflation proves to be higher than expected.

The latest figures show that these clauses are now a reality for most Spanish employees. The figures cover 1,943 agreements, the vast majority of which (1,924) were signed in earlier years and have been revised in 2004. The average increase for the 3.1 million workers covered was 2.9%; this compares with an inflation forecast for the whole of 2004 of 2.0% and a current level of inflation of 2.1% (March).