Catalans have lost 4% of their purchasing power in four years, according to the CGT.

BarcelonaInflation in recent years has acted as an indirect wage adjustment: while companies have increased profit margins, staff salaries have not grown nearly as fast as prices. This is the CGT of Catalonia's diagnosis of the macroeconomic context that has led to a loss of purchasing power for Catalan workers, which the union estimates at 4.1% between 2021 and 2024.

According to the report Erosion of purchasing power in Catalonia and the need for union action Presented this Tuesday, during that same period the consumer price index (CPI, the indicator that measures the cost of living) has increased by 14.8%. "As a result, real wages fell sharply in 2022, and since then, although they have grown, they have not fully recovered their previous purchasing power," the study explains. Compared to the average salary in Catalonia in 2021, before inflation soared, in 2022 this salary was 5.6% lower; in 2023, it was 3.8% lower, and in 2024 salaries were still falling by 2.8%. "Overall, these declines have meant that in the last three years each worker has earned an average of 4.1% less," concludes the CGT.

Added to this impoverishment due to rising prices, the union argues, is the effect of the crisis in access to the housing market. According to its report, between 2021 and 2024, rentals in Catalonia have increased by 37.4% and sales by 10.4%. The union also points out that The CPI does not reflect all price changes in real estate., since it only takes into account rentals. "The rise in housing prices, and especially rents, implies a massive transfer of income to owners and impoverishes significant sectors of the working class," warns the CGT. In this regard, it warns that in 2024 in Catalonia, 18% of renter households suffered serious material deprivation, almost 13% were behind on rent payments, and 27% could not afford to keep their homes at an adequate temperature.

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The union asserts that, while workers have been impoverished by inflation, "these wage declines have fueled corporate profits, which have increased their margins at the expense of workers' purchasing power." The report criticizes the fact that since 2021, corporate profit margins have grown by 6.1% (8.8% compared to 2019) and have reached historic highs. Of 19 sectors analyzed, wages fell in 17, while margins rose in 10 of 13. For example, in activities such as transportation, margins grew by 33% while wages fell by 1%, and in the hospitality industry, profits rose by 31% when wages fell by 0%.

The CGT's conclusion in light of this situation is that the majority unions have given up on the dispute, which has facilitated the loss of purchasing power. Therefore, they defend the need for a union counteroffensive to guarantee wages and decent living conditions. "After three years of loss of purchasing power, it is possible to question the strategy of concentration and social dialogue as a way to guarantee wages and working conditions," the report states.