The three main trade union confederations have jointly refused to continue negotiations over the next two-year pay deal for the private sector. They argue that the pay formula that guides the negotiations leaves only 0.4% as a basis for salary increases. The unions point out that this would mean only a EUR 6.00 gross increase on the minimum wage and just EUR 9.00 for many jobs deemed to be essential during the pandemic. The unions say that the formula, set in 1996 and revised in 2017, is inappropriate for the current situation and fails to take account of the economic impact of the virus.
Confederations reject restrictions of pay formula
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The Polish parliament has just agreed a new formula for increases in the national minimum wage. The EIRO industrial relations observatory reports that it will rise in line with prices plus half the growth in GDP until it reaches 50% of the national average wage. The rate is currently around 210 euros and is the equivalent of 35% of the average wage. Read more at > EIRO
The FOA public services trade union is concerned that salaries in the municipal sector could be reduced as a result of the mechanism in the collective agreement that links public sector pay rises to those in the private sector. On current trends it is possible that pay could be cut by 1%. Dennis Kristensen, head of the FOA, suggests that there could be a compromise solution that allows the social partners to abide by the agreement but defer any potential cuts to see how salaries develop. He underlines the fact that a 1% pay cut would not help councils recruit and retain skilled and experienced