What is the position of the trade union headquarters on the assumptions of the draft state budget?

OPZZ, NSZZ „Solidarność” and the Trade Union Forum adopted a joint position on the assumptions of the draft state budget for 2022. Headquarters say that the government’s macroeconomic forecasts are wrong, the idea of ​​freezing wages in the budget is deadly for citizens and entrepreneurs, and the increase in the minimum wage is too much short.

The joint position of the three headquarters is the result of the failure of three-week negotiations with the government and employers in the Social Dialogue Council. The three largest trade union centers – the Polish Alliance of Trade Unions, Forum of Trade Unions and NSZZ „Solidarność” – presented their position on remuneration for 2022 on May 19, incl. increase in salaries in the budget by 12 percent and a minimum wage increase of 10.7 percent.

The government rejected these proposals – it wants budget wages to be frozen (which in the case of high inflation means that portfolios will de facto be thinned), and the minimum wage will probably increase at around 7 percent. – less than PLN 16 above the statutory minimum.

Trade unions have published a comprehensive, 12-page position on the assumptions of the draft budget for 2022, in which they detail the government’s plans for next year.

Already at the very beginning, trade unionists point out that the assumptions presented by the government are fundamentally flawed, because they do not take into account the financial effects of the National Reconstruction Plan and the Polish Order – primarily their impact on GDP and inflation. And they urge them to be provided with the relevant draft laws related to the Polish Order.

The headquarters also do not believe in the economic growth rate estimated by the government next year (4.3%) and inflation (2.8%). Both the European Commission and the National Bank of Poland estimate GDP growth above 5%, and inflation – above 3%. Underestimating inflation entails underestimating tax revenues, which in turn results in excessive savings.

They are also critical of the assessment of the effects of the pandemic on the labor market. „In January 2021, unemployment increased to 6.5 percent. – a level not recorded for over 2 years. However, as the research carried out by experts from the University of Warsaw shows, many people, eg for fear of infection, did not register with labor offices ”. „So the official level of unemployment reported by employment offices was most likely understated.”

The headquarters emphasize that the government has not presented plans to combat unemployment in 2022, and the social side „has not received the repeatedly announced draft law reforming the labor market”.

The government claims that in 2022 the planned economic growth will be achieved, inter alia, thanks to the high competitiveness of Polish enterprises. In view of the good financial results of companies, the more surprising is the conservative increase in the minimum wage, which will result in „a reduction in demand, production and investment”.

In addition, „companies improve their financial results mainly by competing with low labor costs, and therefore at the expense of the employed,” claim unions. And they provide specific data: in the first quarter of 2021, the profit showed nearly 70 percent. enterprises, and their revenues increased by 10.1 percent. At the end of May this year, the amount of corporate deposits amounted to PLN 386 billion, which means an increase of 11%. compared to the previous year’s ownership.

In the face of rising costs of living and high inflation, the OPZZ, the FZZ and „Solidarność” demand a significant increase in wages, as presented to the rulers on May 19. They are alarming that freezing wages in the budget and too slow increase in the minimum wage will make it impossible to overcome the negative effects of the pandemic for the economy.

At the same time, they draw attention to the problem of income stratification. “The average monthly disposable income of people with the highest incomes was 5.6 times higher in 2020 than the corresponding income of the poorest people. In turn, the share of expenses in the disposable income of the richest people was 52%, and the poorest – 126%. This means that those with the lowest incomes were still forced to use their savings, loans or credits. „

The pandemic also diminished the incomes of old age and disability pensioners. Trade unions postulate to index the benefits for them with the inflation rate of 2021, and to add at least 50 percent to this. real increase in average wages in 2021 and not – as the government wants – by 20 percent.

The trade unions devoted the most space to the government’s idea to freeze salaries in the budget. They remind that last year, due to the coronavirus, employees in this sphere had many more duties than before. Meanwhile, as part of savings, „bonuses and rewards, which are a significant complement to low wages, have been suspended in many units.”

“The public administration is already struggling with the shortage of staff and low interest in taking up employment by young people. […] A further increase in the disproportion in wages between the public and private sectors will lead to an increase in employment fluctuation and the departure of qualified staff into the private sector „- they argue.

Source: https://www.opzz.org.pl/aktualnosci/kraj/opzz-fzz-i-solidarnosc-punktuja-plany-rzadu-na-2022-r-wzrosnie-inflacja-i-   nierownosci

Region Gdański NSZZ „Solidarność”

Projekt otrzymał dofinansowanie z Norwegii poprzez Fundusze Norweskie 2014-2021, w ramach programu „Dialog społeczny – godna praca”.

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