CGIA: minimum wage by law? No thanks. Already today we are above the gross euro 9

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If applied, the 5stelle proposal would cost artisans at least 1,5 billion

Minimum hourly wage of € 9 gross by law? No thanks. Already today, in the main national craft work contracts - which have the lowest wage levels among all the economic sectors in the country - the overall minimum hourly thresholds are in any case higher than the bill proposed by the 5 Star Movement.

• Deferred salary must also be taken into account

To dismantle the grillina proposal is the CGIA Studies Office, which came to this conclusion by pointing out that the contractual matter is very complex and it is extremely simplistic to analyze only the gross hourly wage.

"When the social partners renew an employment contract - points out the coordinator of the Studies Office Paolo Zabeo - in establishing the strictly salary aspects, other institutions are also taken into consideration that do not have a direct impact on the paycheck, but are equally important, as they make up the so-called deferred salary. We refer to holidays, leave, sickness, motherhood, training, etc. Furthermore, if we also take into account overtime, the severance pay, the thirteenth / fourteenth month salary and, where they exist, corporate welfare and territorial supplementary contracts, already today the minimum hourly wage of workers affected by national collective agreements is clearly higher than 9 gross euros requested by the 5Stelle ".

• Costs for craft businesses

Despite this, if the proposal supported by the Minister Di Maio became law, the cost burden for craft businesses would be at least 1,5 billion per year (see Table 1). A penalty that would affect a sector that, together with small businesses and the world of VAT, is currently the only one capable of creating new jobs.

“This additional cost - affirms the Secretary Renato Mason - is in any case underestimated as it does not take into account the drag effect that the introduction of the minimum wage by law would have in relation to the salary levels that today are above 9 euros gross. It is clear that, if the remuneration for the lower levels is adjusted upwards, the same operation must also be carried out for the immediately higher grades. Otherwise, many workers would see the wage differential reduced or even eliminated with colleagues hired with lower levels, even if they are called to perform duties higher than the latter ”.

• Greater risks for companies located in the most difficult areas

In addition to this, the CGIA Research Department reports that the introduction of the minimum wage by law would have very negative consequences

for artisan companies located in the most backward economic areas of the country that, for historical and cultural reasons, do not fully apply national contracts. Probably, the increase in wage costs for companies would push many production companies to dismiss the beneficiaries of this provision of law, thus increasing the army of workers in the black.

• Heavier payslips? Cutting the tax wedge

As an alternative to the 5Stelle proposal, what solution could you put forward to make paychecks for employees and heavier workers?

On this, the CGIA Studies Office has no doubt: it is necessary to reduce the tax wedge, especially the tax component for employees. A very simple proposal and also hoped for by many government representatives. However, it seems hardly practicable: when the tax department is called to "pay the bill", in our country it is extremely difficult to pass from words to deeds.

• The simulations on 6 national collective agreements of the artisan sector

The CGIA Research Office has analyzed the main national contracts in the craft sector, identifying, net of the economic effects of the deferred salary components, the employment levels and the number of employees interested in increasing the minimum hourly wage by law to 9 euros gross. Finally, the related cost for businesses was estimated.

The building and road transport contracts are not included in the analyzed audience: in both these cases, all contractual levels are above 9 gross euros per hour. Let's see the results specifically.

·         Wellness

All 4 levels foreseen by the national contract have an hourly wage below 9 euros gross. The adjustment would affect just over 97 thousand employees with a cost for the entrepreneurs of the sector equal to 558 million euros per year.

·         nutritionists

In this case, 4 out of 6 graduate levels have an hourly wage below € 9 gross. The adjustment would affect just under 84 employees (99 per cent of the total) with a cost for entrepreneurs in the sector of 225 million euros per year.

·         Chemistry, rubber, plastic and glass

In this case, 3 out of 6 graduate levels have an hourly wage below 9 euros gross. The adjustment would affect just over 21.200 employees (equal to 85 percent of the total) with a cost for entrepreneurs in the sector of 43 million euros per year.

·         Graphs

In this case 2 out of 6 grading levels have an hourly wage below 9 euros gross. The adjustment would affect just over 7.200 employees (43 per cent of the total) with a cost for entrepreneurs in the sector equal to 14 million euros per year

·         Metalworkers

In this case, 4 out of 6 graduate levels have an hourly wage below € 9 gross. The adjustment would affect just over 232.000 employees (equal to 93 per cent of the total) with a cost for entrepreneurs in the sector of 515 million euros per year.

·         Wood

As in the previous one, also in this case 4 out of 7 grading levels have an hourly wage below 9 euros gross. The adjustment would affect almost 44.500 employees (equal to 82 per cent of the total) with a cost for entrepreneurs in the sector equal to 93 million euros per year.

Synthetic methodology note

The subdivision by level of classification of artisan employees into the main contracts was studied, for this purpose a special survey was carried out on a sample of over 1.200 employees of craft companies.

The results of this analysis were used to estimate the distribution of the employees of the artisan firms (as resulting from the company register) at the various contractual levels, thus estimating the burden for each compartment of the adjustment of the contractual hourly wage to 9 € as per Drawing of Law n 658.

CGIA: minimum wage by law? No thanks. Already today we are above the gross euro 9

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