Spanish retailer Mercadona to raise wages up to 6% a year until 2028

(Reuters) – Spain’s largest supermarket chain Mercadona agreed with labour unions to raise wages by up to 6% per year until 2028, the CCOO union said in a statement on Monday.

Workers will see their salary raised by the annual inflation rate up to 2.5%, the statement said. If the pace of inflation is higher, the company would allow wage raises that keep up with inflation only if it meets certain profitability targets, and only up to 6%, the union added.

The measure will enter into force on Jan. 1 for five years, until 2028.

European retailers have faced growing demands from their workers for pay rises to match or surpass inflation, which remains strong despite recent declines.

Spanish 12-month inflation fell to 3.2% in November, down from 3.5% in October as prices of fuels and basic foodstuff such as bread, eggs and cereals fell, final data from the National Statistics Institute (INE) showed last week.

Privately owned Mercadona, which employs more than 100,000 workers, had agreed to raise salaries by the rate of inflation last year and the year before.

The retailer said it was also committed to reducing working hours by 2025.

(Reporting by Matteo Allievi, editing by Inti Landauro and Bernadette Baum)