Tenerife business owners view minimum wage increase as ‘very negative news’

"In Tenerife, and in the Canary Islands overall, wages are lower due to the special structure based on services".

The Confederation of Entrepreneurs of Tenerife (CEOE) has expressed strong concerns about the recent hike in the Minimum Interprofessional Wage (SMI) to 15,876 euros gross per year, deeming it “very unfavorable news” that could potentially have detrimental effects on business productivity and even its sustainability.

Pedro Alfonso, the president of the Tenerife employers’ association, conveyed his disappointment in a statement, emphasizing the absence of effective social dialogue to achieve an agreement that would safeguard company productivity.

Alfonso emphasized the importance of “maintaining a continuous focus on preserving the business ecosystem’s viability, and consequently, employment and overall wages, particularly in dealings with public administrations and the agricultural sector.”

Tenerife business owners view minimum wage increase as 'very negative news'

This increase in the minimum wage has raised concerns about the stability of numerous jobs, particularly in the agricultural sector on the islands, as cautioned by the CEOE’s president in Tenerife.

Additionally, the business leader pointed out that “in the Canary Islands, salaries are already lower due to the predominant service-based structure, which is why this announcement is expected to have a more pronounced impact.”

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