Spain seen unhooking wages from prices despite protest - Reuters -: "Spain's Socialists are likely to ignore any labour union protests and push through a reform to de-link wage increases from inflation in a new effort to placate markets sceptical over long-term economic growth prospects.
Prime Minister Jose Luis Rodriguez Zapatero is enjoying the warm glow of a consensual pact with unions and business heads over pension reform at the end of January, but the honeymoon will be short lived as talks turn to an overhaul of collective bargaining.
In Spain, the collective bargaining process has unions negotiating wages for entire industrial sectors rather than on a company-by-company basis and sets inflation as a benchmark for hikes.
Zapatero knows his drive to make Spain a more competitive euro zone economy will fail if he can't overturn wage indexation, and has said he's willing to follow Germany and France in their crusade for a trans-European competitiveness pact."
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