The rise in the minimum wage, announced on Wednesday 22 by the Spanish Minister of Labor, has not taken into account the reality of the most affected sectors and will damage the social and economic sustainability of fruit and vegetable farms, given the impossibility of transferring this increase to sales prices, as well as the strong competition from non-EU competitors with labor costs per hour that are up to 10 times lower, said FEPEX.
The application of the latest rise of the minimum wage entailed additional costs and salary increases of between 7% and 22% for companies in the fruit and vegetable sector in all production areas, according to FEPEX. Thus, the announced increase will exacerbate this situation.
The rise, which will be enforced retroactively from January 1, has not taken into account the reality of the most affected sectors, such as the fruit and vegetable one, in which labor costs account for up to 45% of the production costs; nor has it considered the impossibility of transferring the higher costs to the products' prices, given the market's globalization, with competitors, such as Morocco, with the same products and campaign schedules, but with hourly costs 10 times lower than in Spain.
Given this situation, FEPEX believes that the fruit and vegetable exporting producer sector, which employs a high number of low-skilled workers, with a high percentage of immigrants who spend very little time in Spain, will significantly reduce its productive activity. There is no margin to assume the increase in costs and this will cause a severe destruction of employment in the most labor-intensive crops.
For more information: 
www.fepex.es
