Local view for "http://purl.org/linkedpolitics/eu/plenary/2002-12-18-Speech-3-070"
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"en.20021218.4.3-070"2
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When prices increase, the value of wages decreases. To protect themselves against this, the trade unions in many European countries have battled for years for indexing. This means that it is not necessary to negotiate on compensation for the reduction in purchasing power every year but only on the extent to which workers should participate in productivity increases and on the making up of arrears suffered by some occupational groups who have been underpaid for years. Pressure from employers’ organisations and the support afforded by neo-liberal governments have in very many cases reversed this indexing. This can result in increasing intransigence in wage disputes. Attempts are repeatedly being made to place the blame for inflation or the lack of money for useful government expenditure on the shoulders of the workers. This means that in the eyes of the Right and the employers, the economy will flourish only if a majority of the people accepts a creeping drop in purchasing power. They do not consider the loss of domestic purchasing power that this can cause, or the excessive profits and too low taxes. Official statistics on wage costs and the development of prices become an important item of information in labour disputes and in the way in which governments and employers attempt to manipulate these disputes. The regulation on labour cost index will not eliminate this conflict of interests."@en1
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