The president of CIP – the Portuguese Business Confederation admitted to returning to the income agreement, which the union was not involved in strengthening, if the final version of the state budget includes his concerns.
“Our proposals are still on the table, they have not been withdrawn and the budget has not been voted on yet. We continue to negotiate. If the final version of the state budget includes our concerns, then of course yes [admito voltar ao acordo de rendimentos]“, said Armendo Montero, at a press conference in Lisbon.
At the beginning of October, the government introduced a strengthening of the income improvement agreement negotiated with the social partners, which provides for an increase in salaries to €820 in 2024, but excludes CGTP and CIP.
“We will not sign the agreement. Not because of what is there, but because of what is not there.”
At the press conference, Armendo Montero said that CIP will monitor the budget discussion and analyze its feasibility. He pointed out that “if we feel that this is possible, it is natural for us to maintain our membership.”
The income agreement, signed a year ago between the government, employers’ unions and the General Confederation of Workers’ Union, forecast that the minimum wage in 2024 would reach €810, providing a reference of 4.8% for next year’s salary increase.
The recently signed booster expects an upward revision of this reference to 5%.
“We can’t understand the subscription feature [o acordo]. It is not a problem that we do not want to increase income. We want. But we want to do it in a way that is possible,” stressed the CIP President.
Armendo Montero considered that the expected increase in salaries does not depend on economic growth, and said that he does not see measures, neither in the agreement nor in next year’s budget, to encourage this same growth.
The official highlighted the loss of qualified workers, with companies unable to retain talent, due to financially “unequal competition” with other countries.
“Being a poor country, we have taxes on the rich. “We have an IRS tax system that makes billionaires at a relatively low level.” He asked: “How many more people do we have to let out with talent and ability, until the bell rings?”
At the beginning of the press conference, where the CIP discussed the Social Charter, the State Budget and the economic prospects for 2024 for almost two hours, Armendo Montero considered that the budget proposal for next year is neither bold nor promising, there is a lack of measures to stimulate investment, and that the economy is at risk of becoming emaciated.
In September, the CIP proposed to the government a so-called Social Pact containing 30 measures, including a voluntary payment by companies for the 15th month for workers exempt from contributions and taxes.
The Employers’ Union also proposed, in 2024 and 2025, a 14.75% salary increase in salaries with a temporary reduction in the Unified Social Tax (TSU). Of this amount, the salary increase will be 4.75% and the remaining 10% will go to the individual retirement plan.
The CIP calls for the establishment of retirement plans at companies with TSU and IRS exempt payments, coming from this extraordinary measure of liquidity for families, employer contributions, earnings paid to workers, overtime or rest hours earned as compensatory rest or annual leave beyond a minimum period.
Last week, the government handed over the proposed state budget for 2024 (OE2024) to the Council of the Republic, which will be discussed and voted on in general on October 30 and 31, with the final global vote scheduled for November 29.
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