This is one of the conclusions reached in its report CCOO ‘salary Situation in Spain during the 2008-2011 crisis’, which also states that in the last four years of crisis has been a sharp adjustment costs labor per worker.
In this regard, CCOO alleged that these cost savings derived from wage moderation and employment adjustment is not being spent by companies to increase investment, or lower prices.
This is causing the Spanish inflation has picked up in 2010 and so far in 2011, stands CCOO, which explains that some of this increase is temporary and structural another rising profit margins, mainly service sector firms ( gas, electricity, water, fuel and telephone), despite the ‘sluggish’ demand.
Of the businesses that are dedicating the labor cost cuts to stem the job losses CCOO warns that ‘would otherwise be even higher’ unemployment.
CCOO also indicates that the savings is being devoted also to reduce the ‘high’ corporate borrowing.
Thus, the union that runs Ignacio Fernandez Too considered a condition sine qua non for economic recovery in the financial sector standardization, since it considers that ‘there seems’ that the export sector is able to solve the crisis in demand in the medium time.
It also demands that exploit the potential of domestic demand growth to develop the national productive.
Given the lack of liquidity credit to households and businesses CCOO proposes to improve, to impose conduct cost and price moderation.
This should be accompanied by tax and spending policy that, without abandoning the deficit targets, is ‘fairer burden-sharing, effective in the pursuit of fraud and efficient implementation of public programs’ advocates CCOO.