(Original title: An absurd comparison of inflation is staged inside the European Central Bank)
Financial Associated Press, December 8 (Edited by Shi Zhengcheng)Faced with the tough stance of ECB President Christine Lagarde, European Central Bank staff are discussing further measures and a strike is not ruled out, according to media reports on Wednesday.
The background of the whole thing is also very simple,The ECB is now proposing a 4.07% salary increase for staff starting next January, which is also far below the current 10% inflation rate. The European Commission also forecast in November that the EU’s inflation rate will remain at a high level of 7% in 2023, while the inflation rate in the euro area is expected to be 6.1%.By any comparison, this means that ECB staff will be paid less in real money terms.
Carlos Bowles, vice president of IPSO, the trade union of the European Central Bank, told the media that staff were losing faith in the institution.The ECB leadership is like saying to everyone, sorry if we got the inflation target wrong, but now you employees will pay the price. In a recent poll, the union found that the vast majority of workers were very angry about the wage proposals, which are expected to be finalized by the end of the year.So wait until next January and we will decide whether to take further steps。
Bowles further stated,Unions held talks with ECB President Christine Lagarde a few weeks ago and she said ‘there was no room for negotiations’. Therefore, the ECB cannot rule out the option of a strike at this time, but that will only happen after the situation has further deteriorated. In 2009, ECB staff went on strike over pension reform.
It is worth mentioning that although there are also examples of Brazilian Central Bank employees going on strike this year due to dissatisfaction with their salaries, it is much more complicated to go on strike at the European Central Bank. as an international organization,The ECB is not bound by the laws of any country, but operates according to its own rules.Therefore, even employees of the European Central Bank bear the “minimum service obligation” and the interpretation of this term alone needs to be discussed on a case-by-case basis.
For Lagarde and Powell across the ocean, the “inflation spiral” named after inflation-chasing wages is the last thing they want to see. Including the European Central Bank, the Federal Reserve and the Bank of England will issue their latest interest rate resolutions next week. Unsurprisingly, there will be another round of unconventional interest rate hikes.
Eric Nielsen, Chief Economic Advisor of UniCredit Bank, commented: “It was embarrassing. While the ECB is fighting inflation, it also has to deal with backstabbing its own staff. The symbolism in it conveyed is really bad。”
Regarding this internal conflict, the European Central Bank has officially replied to the media that the institution will carry out a regular annual salary review, follow a pre-established method and may reflect the 19 central banks of the euro area, the European Commission, the European Fund for Investment Bank, international clearing banks and other institutions refer to the salary dynamics of the institutions, and this mechanism is applicable to all employees.
The European Central Bank also said it was trying to accommodate employee requests. The bank recently reached a new remote working agreement with employees, allowing employees to work remotely up to 110 working days per year. Under this agreement, ECB employees can work remotely for up to 10 days per month, but the number of consecutive working days of remote work cannot exceed 10 days.
