Wages come next

Expresso's "Altos e Baixo" (05SET20) placed the CGTP Secretary-General in the "Low" because CGTP scheduled for September 26 a day of struggle with the motto "Increase salaries! Develop the country ”.

Expresso's "Altos e Baixo" (05SET20) placed the CGTP Secretary-General in the "Low" because CGTP scheduled for September 26 a day of struggle with the motto "Increase salaries! Develop the country ”. The author of the "Highs and Lows" considers such a decision "completely unreasonable" because "It is necessary to save companies, so that there can be jobs and productivity. Wages are next. ' CIP, AEP, CTP, etc. would not say it better, because they already said it…
Advocates of this axiom (the big business confederations have been declining it for decades), never clarify is "after" what "(and also when) wages can rise. There is never an adequate situation for these people to raise wages ... rain or shine! In fact it was and this is how Portugal presents itself as one of the lowest-paid countries in the EU and the Eurozone, even in comparison with others with identical levels of economic development and productivity.
Now, in the context of a brutal reduction in external demand, the central issue is to ensure that the internal market can handle, and even compensate for, external restrictions. In other words, in the current situation, saving Portuguese companies, and the majority of micro, small and medium-sized companies, which overwhelmingly work for the domestic market, go through exactly the opposite of what those souls say: increasing wages starting with the SMN . Increase wages to curb the growing indebtedness of families and respond to the shameful scourge of poor workers. Increase wages to respond to the risks of ongoing deflation. As João Duque points out in the same Expresso, “the eurozone entered deflation. (…) Portugal was announced as one of the countries that contributed to this drop in the European indicator! » And he concludes that despite the ECB's successive bazookas of "liquidity injection", "the results are these ...", that is: deflation! Maybe it's time to change tactics and raise wages ...
Then, because they “forget” that the weight of companies' production remuneration (certainly with variations, is an average of 16,6%.
In fact, what they don't want is to face and confront the great economic interests responsible for others and the high production costs of Portuguese companies. Neither they, it should be said, nor the PS / Costa Government.
Credit and insurance costs. The Government has been advertising since July, a Line of Credit for micro and small companies of one billion euros. But so that the parish is not too large, he decided to limit this line only to companies that had “an abrupt and sharp drop in at least 40% of their turnover”… something that he did not demand for the previous credit lines.
Energy costs - why not limit them to average levels in the euro area? Telecommunications costs - why does the Government expect, in view of the regulator's analysis, to intervene?
The rent costs of thousands of companies, whether located in shopping centers - the Government is skeptical in making what was decided in the Supplementary Budget - or in street commerce - materialized, because the PS and PSD refused the measures presented.
There are thus ways to help «survive» «thousands of companies», which do not go through wage freezes, to such «austerity» that the Government says it does not practice ...

Recommended

The reversals have to be very well explained

Portugal cannot afford to be seen as the country where reversals are the “new normal”. It is important to prove that the public interest prevails and not that of 'lobbies' willing to get their hands on these concessions.

The president goes naked

On the balance of the Obama presidency, I wrote that "the next one tries to do better". Unfortunately, Trump did no better. In many ways, he didn't even try to do better.

Lessons from the Azores

The regional elections gave, with surprise in the face of the polls, a huge blow in the stomach of the power in force in Portugal, that of the PS of António Costa.
Comments