Av. Diagonal, 621 – 629 08028 Barcelona Tel: `34 93 404 13 98 email@example.com Valencia, 31 January 2020. CaixaBank Group, with Jordi Gual as chairman and Gonzalo Gortzar as CEO, made a net profit of 1.7 billion euros in 2019, down 14.1% from the previous year. Consolidated profit increased by 20.4% during the year to 2.4 billion euros, excluding the effects of the labour agreement concluded in the second quarter, which generated a gross effort of 978 million euros (685 million euros net). Without these effects, RED would be up to 10.8%. Another sign that workers on fixed-term contracts accumulate less human capital, The results of the OECD`s Survey on Adult Skills show that workers on fixed-term contracts in Spain consume fewer skills3 in their jobs than workers on permanent contracts, also taking into account differences in educational and employment levels (see Chart 2).4 In addition, these differences in the use of qualifications between different types of contracts are greater in Spain than in the OECD as a whole, which has significant consequences on the double labour market, which is more important in the case of Spain. The proportion of fixed-term contract workers in Spain, which stood at 26.2% in 2015 in the third quarter of 2015, almost doubles the EU average share by 14.8% and is one of the specific characteristics of the Spanish labour market which has a negative impact on its productivity1. Productivity increases when human capital is accumulated and workers make more effort. Recurring administrative expenses, depreciation and amortization decreased by 3.1% after managing the cost base. Personnel expenditures decreased by 4.6%, with the 2019 employment contract and early retirement schemes in 2020 generating both savings and offsetting the organic increase.
Current expenditure also decreased and decreased by 1.7% over the year. What trend can we expect in the years to come? As the labour market slows and the inflation outlook increases, wages can be expected to gradually recover. Some of this positive development is already observed in the wage revisions agreed in the collective agreements. Collective agreements with an economic impact in 2018 include an agreed wage increase of 1.69% on average (based on data until October 2018), while those signed in 2018 include an increase of 1.97%, in accordance with what was agreed in the 2018-2020 Employment And Collective Agreement Agreement (known as CNEA) 8. Nevertheless, we will have to keep a close eye on how this gradual recovery in wages is felt across the wage spectrum, and recent trends would not be optimistic. Focusing on the last period, the trend in post-decile wages in 2017 follows a different pattern from the recovery years (2013-2016). This shift in trend may be linked to a greater polarization of the labour market in many industrialized countries, where demand for jobs is lower in middle-wage occupations (usually more automation-sensitive jobs) (7, which drive down median wages. In other words, wages rise more at the extremes of the spectrum, which leads to a U-shaped pattern in the wage trend (see third chart). 8. The government collective agreement 2018-2020 recommends a fixed wage increase of about 2%, plus a variable increase of 1%, which is in line with the factors negotiated in the agreement, such as productivity. CaixaBank has reached an agreement with the majority of employee unions to implement a restructuring programme that will facilitate the reconfiguration of the commercial network, consolidate the Bank`s presence in rural areas, promote financial inclusion and promote digital transformation, in line with the objectives of the 2019-2021 Strategic Plan.