Andorran union demands automatic CPI indexation for wages and pensions

The Unió Sindical d’Andorra (USdA) has urged the government to introduce legal mechanisms requiring all salaries to be automatically adjusted in line with the Consumer Price Index (CPI), arguing this is necessary to protect workers’ purchasing power and prevent further deterioration of living standards.

The union said analyses presented to the Economic and Social Council (CES) show inflation is outpacing real wage growth, with middle‑income earners particularly affected. “An adjustment of wages linked to the CPI is indispensable to stabilise the economy and maintain social cohesion,” USdA said.

USdA criticised leaving indexation to collective bargaining, calling it ineffective in practice. It noted that most private‑sector companies lack formal worker representation and so do not apply CPI‑equivalent increases, even though many report rising — and in some sectors exponential — profits. The union said this indicates the shortfall in wage adjustments is “not a question of economic capacity but of a lack of will.”

The union also demanded that retirement pensions be legally and automatically indexed to the CPI to prevent pensioners, described as a particularly vulnerable group, from losing purchasing power year after year. USdA framed automatic pension indexation as a safeguard for social protection and intergenerational fairness.

Secretary‑general Gabriel Ubach reiterated the union’s position: “Wages cannot be detached from the country’s economic reality; if prices rise, wages must also rise, because people cannot continue working only to lose purchasing power year after year.” He warned that a model based on the progressive impoverishment of workers is unsustainable and called for “firm and immediate” action from the executive.

USdA asked the government to establish mandatory indexation mechanisms for salaries and pensions similar to those used in several European countries. The union said it will continue to press the executive to respond to the economic evidence and social demands and reaffirmed its commitment to defending labour rights and protecting workers and pensioners.