Rising wages: bosses and unions find themselves back to back

The government receives this Tuesday noon the social partners because the unions and the bosses might not agree on the wage margin, the increase in wages excluding automatic indexation for the next two years.

Why does it get stuck?

It is the impossibility of increasing wages outside of automatic indexation that poses a problem. The framework is set in the law of 1996 and depends on the competitiveness of our country, in connection therefore with wages in neighboring countries. This year, the margin is set at… 0%. This is far too little for the unions, which are demanding the possibility of being able to negotiate increases, at least in certain sectors.

For the bosses, it’s almost already too much. They say they have trouble paying their employees with the successive indexations linked to inflation.

What should the government do?

He must find avenues of mediation to try to get everyone to agree, he must regain control.

Is there any hope?

Pieter Timmermans, managing director of the Federation of Belgian Enterprises, compares with the situation in Germany. “Unions demand 8% there, 2% less than inflation“, he said. “Here, we are at 12% and we are asking for even more. What business will stay alive in the end? The German or the Belgian? This is today’s question.

Thierry Bodson, president of the FGTB, believes that the challenge for the government will be to come up with several additional elements. “Last time he offered the possibility of getting a ‘one shot’ envelope of 500% beyond the margin“, he recalls. “I don’t know if it will be offered. But I think it will be next week.

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