Competitiveness Pact Undermining Workers' Wages
With the aim of re-launching the European economy, a "Pact for Competitiveness" was put forward by France and Germany at the last European Council on 4 February. Measures proposed include the cancellation of wage indexation, writing deficit limits into national law and seeking greater harmonisation on tax and the retirement age in European countries.
Within this ongoing debate about reforms, SOLIDAR highlights that a ban on wage indexation agreements sees competition market logic rules hampering collective bargaining system across Europe. Whether wage indexation systems can be sustainable and profitable in the long term is a question that has to be addressed at country level due to the key role collective bargaining and social partner play in wage formation.