Inditex: the minimum wage of 18,000 euros agreed with the unions will cost 167 million euros
Inditex agreed with the unions on a 18,000 euros minimum wage for its employees in Spain.The measure will have an impact on the accounts of the fashion company. The company hasn’t quantified it yet, although some analysts have started costing the measure: 167 million euros. On Friday, doubts took over and the company’s shares fell 4.58% on the stock market.
Bankinter analysts, in their daily market report, briefly comment on their opinion on the measure adopted by Inditex, which will result in lower fuel consumption. an average wage increase of 20%. for store staff in our country.
In 2021, in Spain, the group had 1,267 stores out of a total of 6,477, or 19.5% of the total. Assuming a salary increase of +20% for the entire Spanish workforce, which represents 9.7% of operating costs, this would translate into an increase of 1.5 million euros. an increase in costs of 167 million euros, or 3.3% of operating profit.“, comment these experts.
They think it’s a “Negative News”although they also consider that Inditex “can compensate with further cost reductions and economies of scale. ». This is why they maintain their buy advice on the security, while keeping the target price under surveillance.
According to the unions, the 18,000 euros will be paid to all the workers of the different brands of the group as a fixed minimum wage, to which they will be entitled. other variable payments will be added such as those related to seniority, commissions, incentives or night work which appear in each applicable collective agreement, as well as bonuses or allowances paid by Inditex and which are not included in the collective agreement.
According to the agreed tables, group I (salesperson and cashier with less than 18 months of seniority) will be paid at least 18,000 euros per year; group II (salesperson and cashier with between 18 months and 4 years of seniority) will be paid 20,000 euros per year; group III (salesperson and cashier with 4 years of seniority and more) will have a salary of 22,000 euros per year; and group IV (directors, central cashier) will be paid 24,500 euros per year.
The agreement will have three years and will be reflected in the March payroll retroactively from January 2023.. In addition, it is specified that the amounts mentioned will be increased according to the CPI for each of the years of validity and that all amounts will be paid in 12 monthly installments. The amounts are fixed for full working days and prorated for part-time work, the unions point out.
Inditex, in negotiations with CCOO and UGT, has also approved childbirth and adoption assistancean increase in the salary paid to work in Sundays and public holidaysas well as larger commissions and bonuses.
Thus, the textile group will give workers 450 euros for the birth of a child170 euros per month for childcare and/or canteen (if not free) per child; 200 euros per year for school supplies per child aged 3 to 18; up to 500 euros for university per child; and 600 euros in aid for international adoption.
On the SundaysSundays, whether they are outside the ordinary working day or voluntary, are paid at 12 euros per hour plus one hour of rest or at 24 euros per hour at the choice of the worker. Those who are part of the normal working day are paid 10 euros per hour. The website holidayswhether or not it is an ordinary working day, is remunerated at 12 euros per hour plus one hour of rest or at 24 euros per hour at the choice of the worker.
And the commissions and bonuses? Inditex will increase the commission percentage for all brands to one percent 1.4%. Currently, the commission per sale ranges from 0.8% for the lowest brand to 1.2% for the highest. Regarding the special incentive or bonus, the agreement provides that in the payroll of February 2023 and in 2024, all workshop personnel will receive €1,000 (contracts of 24 hours or more) and 600 euros (contracts of less than 24 hours).