“One rule for the wealthy, one other for the poor”

As wages lag, shareholder compensation rose virtually 29% in Europe within the second quarter

“Staff are being advised now shouldn’t be the time to present them a pay rise, whereas shareholders are popping the champagne to have fun their pay properly above inflation.” Esther Lynch, deputy secretary of the European Commerce Union Confederation (ETUC), commented in a latest press launch from the umbrella group on the figures referring to will increase within the quantities acquired by shareholders throughout the second quarter of this yr. General, this improve quantities to twenty-eight.7% in Europe. “This is a rise seven instances sooner than the speed at which wages are rising throughout the European Union,” estimates the ETUC. Desk in assist, the confederation compares the will increase granted in numerous nations. We study, for instance, that shareholders in Spain acquired dividends 97.7 instances greater throughout the interval analyzed than for a similar tranche in 2021, forward of Italy (72.2%). In Germany, this fee is 36.3%, in France 32.7%, adopted by Belgium (25.1%) and the Netherlands (23.4%). On the identical time, workers wage will increase anticipated this yr vary from 0.7% (Sweden) for the bottom to five.9% (Belgium) for the very best – the common starting from 3% to 4%. These slight will increase are a part of a European Union hit by a pointy rise in the price of dwelling. The inflation fee final July, in comparison with the identical month in 2021, amounted for instance to 11.6% within the Netherlands, 10.7% in Spain, 10.4% in Belgium, 9 .6% in Eire, and even 8.5% and eight.4% in Germany and Italy respectively.

Tax extreme earnings

“These numbers shall be onerous to imagine for tens of millions of staff struggling to deal with the price of dwelling disaster. It’s as soon as once more clear that there’s a rule for the wealthy and one other for the poor. It’s a double insult for staff as a result of firms don’t present them with a dwelling wage and present wages are additional devalued by rising inflation,” added the ETUC official. In accordance with the confederation, the hole between the charges relevant to the fee of dividends and salaries in Europe additionally contributes to the decline within the share of GDP going to staff in comparison with that going to managers and shareholders. And this whereas enterprise funding for the long run remains to be under pre-pandemic ranges. On this context, the ETUC calls on European governments to introduce an unavoidable tax on extreme earnings. It additionally requires the introduction of a restrict on the quantity of bonuses and dividends and assist for collective bargaining, which is taken into account one of the simplest ways to make sure honest remuneration for staff. “It’s time to put an finish to this scandal. Tax extreme earnings and guarantee honest wage will increase for staff.”