Sunday, September 27, 2015

Paying now...or not all

Temporarily ignoring today's election in Catalonia - obviously an extremely important event - I found this little gem of an editorial on a completely different subject:

"The somewhat quixotic idea of an extra payment for the workers, the paga extraordinarianow extended to two payments in June and December – began as a Christmas bonus (known as un aguinaldo) of a week’s wage to workers, ordered by Franco’s Government in the winter of 1944. The edict was extended the following year and declared to be permanent. Two years later, in 1947, a similar payment was ordered to celebrate what would now be May Day, but was then the 18th of July (the date of the 1936 Coup d’état). Later, after Franco’s death, this second payment was moved to June. In 1980, a new agreement with the unions, never changed to this day, changed the system of the ‘fourteen payments’, which could, as agreed by the workers, be paid either as twelve regular monthly or fourteen (irregular) payments, but, from a previously accorded annual payment. In reality, the workers are no longer paid more, but by spreading the payments in this way, the tax paid by the employers is actually slightly reduced. Further, as the Government dropped the extra payments for the funcionarios in 2012 (part of which they promise to make up just after the December 2015 elections), workers are effectively having the wool pulled over their eyes. One thing which we can expect from the Troika sooner or later will be an end to this odd system originated as a workers’ bonus by Franco."

More from this very well-informed source here.

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