Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

News

"A rich country cannot have poor workers"

6 replies

DGRossetti · 18/12/2018 12:17

Obviously no one in the British government ever said that.

But it seems Spains PM did.

www.bbc.co.uk/news/world-europe-46539748#

Spanish Prime Minister Pedro Sanchez delivers a speech at the Lower House during question time, in Madrid, Spain, 12 December 2018

Spain's minimum wage will jump by 22% in 2019 - the largest annual increase in more than 40 years.

It means millions of low-paid workers could see a pay rise from €736 ($835; £665) to €900, effective from January.

Prime Minister Pedro Sánchez announced the increase on Wednesday, declaring "a rich country cannot have poor workers".

The announcement comes two days after France's president Emmanuel Macron announced a €100 increase for minimum wage earners from 2019.

Mr Macron's move came after weeks of sometimes violent protests from the "gilets jaunes" movement against high costs of living.

But while Spain's increase is part of an annual review, it is far higher than any adjustment in recent years.
What's behind Spain's rise?

Spain's minimum wage is lower than that of the UK, Germany and France but higher than in other EU members including Portugal, Greece and Poland.
spain apple worker Image copyright AFP
Image caption Low-paid workers could see a pay rise from €736 to €900

Many workers in Spain are paid for 14 months of work, with extra payments in July and December - making the effective annual minimum salary €12,600.

Ministers will approve the measure at their meeting on 21 December, Mr Sánchez said. It will then be authorised by royal decree, without the need for approval by parliament.

Spain sets the minimum wage annually, but recent increases have been much smaller - set at just 4% a year ago.

If all goes to according to plan, the increase will be the biggest since 1977, the year of Spain's first free elections following the death of dictator Francisco Franco.

The large bump is the result of an ongoing attempt by Mr Sánchez's minority government to secure its political plans - including budget measures - with the help of anti-austerity party Podemos.

Podemos claimed the minimum wage increase as a victory for the party, with its General Secretary Ramón Espinar calling it "the first step to balance the scales".

Mr Sánchez is also under pressure from Catalan separatist parties - they have refused to back him over rising tensions between the semi-autonomous region and Madrid - and from the success of far-right party Vox - it made gains in Andalusia's regional election.
What is France doing?

Four weekends of violent protests against fuel tax rises, living costs and other issues prompted Mr Macron to announce economic concessions.

The effective increase of 7% will be met by the government rather than employers, at the cost of billions of euros in public money.

Other measures included cancelling a planned tax increase for low-income pensioners, overtime pay no longer being taxed, and employers asked to pay a tax-free end of year bonus to employees.

But Mr Macron did not reinstate a tax on the wealthy he had abolished, saying "this would weaken us, we need to create jobs".
A chart showing minimum wages in select EU counties, showing Spain behind the UK, Germany, France, Belgium, Netherlands, Ireland

OP posts:
ViragoKnows · 18/12/2018 12:18

That’s how you do it Smile

Usernumbers1234 · 18/12/2018 12:24

Erm, but even after that increase it will still be behind where the British government has set it, so I’m not sure what you’re opening paragraph is all about.

And let’s not really take advice on fiscal management from spain eh, hardly an example of how to run an economy

Kazzyhoward · 18/12/2018 12:27

So how will that help when it causes inflation and prices to rise - they'll be back where they were - yes, a higher wage, but also higher costs, so no actual benefit.

DGRossetti · 18/12/2018 14:35

I wasn't posting for an economics lecture, but more because I've never heard any British politicians say something as simple and true as the title I gave this thread ...

When was the last time Theresa May become scarlet with rage at the fact that one of the 10th largest economies in the world has increasing homelessness and declare that as a rich country (richer than Spain for now) should not accept poorly paid workers.

It's a decent aspiration if nothing else.

OP posts:
Usernumbers1234 · 18/12/2018 14:42

Maybe you need one. Spain and France pay their low paid workers far less than the UK yet here you are posting them as an example we should follow.

Should we be aspiring to pay our minimum wage staff less than anyone else in Western Europe like Spain? Your point seems confused.

And to answer your question, I can’t speak for what colour her face was, but 11th July 2017, at the reveal of the Taylor Review into employment practices which was highly critical of the gig economy.

But hell, if that gets in the way of your Narrative you ignore it. Anyone else who has raised their minimum wage to 70% of ours that you want to hold up as the future of economics?

cdtaylornats · 28/12/2018 14:59

In the UK poverty is defined as being below 60% of the median income so it is by definition impossible to get rid of poverty unless everyone gets paid nearly the same. Don't notice Pedro Sanchez cutting his earnings to near the median.

New posts on this thread. Refresh page
Swipe left for the next trending thread