CGD workers wrap up another day’s strike this Friday against a wage proposal made by the bank in protest organized by the CGD Group Workers’ Union (STEC).
As early as Thursday, they went on strike, focusing the attention of workers in front of the bank’s headquarters in Lisbon.
Employees of the CGD Group are in favor of a fair wage increase, considering “an offer to raise wages of about 0.4% offensive and embarrassing,” according to STEC.
STEC accuses the CGD management of being “utterly contemptuous, irreconcilable and disrespectful of workers”, stressing that “from the very beginning of this process, it has shown full responsibility and willingness to negotiate, but cannot accept repeated ignorance of the leadership about the workers of the CGD.”
The union says that between 2020 and the first nine months of 2021, the CGD’s result was around € 1,000 million, and an additional € 300 million in dividend was provided to the state, which it says was achieved through “work, commitment and the dedication of all workers. “
However, he adds: “For the CGD leadership, this job is worth a miserable reward in the form of a 0.4% salary increase.”, the figure is below the inflation forecast for 2021, which means that workers will continue to lose purchasing power.
For STEC, the wage problem is exacerbated by “the constant deterioration and degradation of working conditions, as well as the serious and dangerous fact that CGD does not comply with statutory working hours” and blames the CGD leadership for not fighting for dialogue and social peace in the country. Company.
On December 7, STEK went on strike for overtime work from 00:00 on December 13 to 24:00 on January 14, 2022.
CGD Claims It Pays Well Over The Competition
However, CGD regrets the strike by the CGD Workers’ Union (STEC) “in the middle of the negotiation process for a wage revision”, which resulted in the bank’s pay table “much higher” than its competitors.
“Caixa Geral de Depósitos” [CGD] deplores the decision of the CGD Group Workers’ Union (STEC), unlike other unions in the banking sector, to go on strike in the middle of the wage revision negotiations. Strike is a right that all workers enjoy, but should not be understated or disadvantaged compared to competitors, ”he said in a statement.
Claiming that he “made a commitment to the unions to submit a proposal, which he actually did,” Caixa stresses that “despite the lack of agreement, negotiations continue like other banks.”
In a statement, the CGD recalls that this year “the bulk of Caixa Geral de Depósitos’ salaries have increased by more than 1.1%” and that “with Caixa’s current offering on the salary scale, the increase will be 1.5%. “.
“Caixa Geral de Depósitos’ remuneration table is much higher than that of other banks with which it competes (over 19%), with an average remuneration of € 5,715 in managerial functions and € 2,353 for non-management positions,” he adds. adding that the average pension is € 2,118.
In addition to revising the pay table, Caixa states that it also proposes to “update the values of the monetary clauses, even if they are the highest in the bank,” with an emphasis on the food subsidy (€ 11.32 per day.), Which, he stresses, “16.5% higher than banking (9.72 euros – 9.75 euros per day).”
In turn, he notes that “the size of the child subsidy is on average 120% higher than it is practiced in the entire bank.”
“Even so,” he stresses, “the administration has presented a proposal to increase the subsidy for childbirth support (+ 1.9%), which will rise to 800 euros,” and “although in Caixa the subsidy for student workers by 5.63% higher than the average bank, the offer increases its value by 4.7%. “
In addition, the proposal presented by Caixa provides for an increase in support for the education of children up to grade 12, which is already 6.56% higher than the bank average, as well as a 2.55% increase in the subsidy for educational support. for higher education “.
“The work, merits, dedication and dedication of its employees have been recognized,” the bank guarantees, specifying that “in 2021, about 1,350 employees were promoted, and in the first quarter of 2022 there will be 802 promotions”, and “about 82 people will be promoted in the first quarter of 2022. ” % of employees received performance awards and potential awards in 2021. “
“Caixa, as a relevant institution in the national banking sector, will continue to fulfill its role in competing with other banks, despite a higher salary scale and higher fees from the Pension Fund (with unique conditions in the country),” it said. up in a statement.
However, he emphasizes that “as a Portuguese bank with state capital, it must ensure that it has the financial capacity to face future challenges, but also carry out a mission to recover the amounts that the Portuguese and investors who have entrusted it with the recapitalization, 2017.”
Wall Street rejoiced after the statements of the President of the US Federal Reserve System (FRS), who admitted the possibility of a slowdown in interest rate hikes back in December.
After Powell’s words, the Standard & Poor’s 500 added 3.09% to 4.080.11 points, ending November, recording the second consecutive monthly increase, which has not been since August last year.
In turn, the industrial Dow Jones ended the day, adding 2.18% to 34,589.77 pointsthus earning a score 20% above the low recorded on 30 September.
The Nasdaq Tech Composite rose 4.41% to 11,468 pointsprolongation of highs for about two months.
Markets have been revitalized Powell’s words. The Fed President acknowledged – in line with the minutes of the central bank’s latest monetary policy meeting – the need to slow down the pace of interest rate increases and pointed to the December meeting as the date when this could happen.
However, Powell stressed that further increases in the base rate should be expected in order to bring inflation to the target level of 2%. “History strongly warns against premature relief [do endurecimento] monetary policy. We will stay the course until the job is done.”
Thus, the market expects that, unlike the last four consecutive increases of 75 basis points, the federal funds rate will rise only 50 basis points at the next US central bank meeting scheduled for December 13 and 14. The key interest rate is now set in the range of 3.75% to 4%.
The government has abandoned its pension boost formula, which would have resulted in more than 8% for the vast majority of pensioners, but in light of the commitments it has made, it will have to revise legislation providing that most pensions (up to about 960 euros) rose by 4.43% in January..
The executive branch said that the amount of half of the pension paid in October (corresponding to 3.57% of the annual pension amount), added to the increases determined for January, ensures that pensioners do not live to the end of next year with less liquidity. they would be if the formula (although they have been losing money since 2024).
It turns out that the legislation takes into account not only the dynamics of GDP over the past two years, but also the average inflation, excluding housing, recorded in November, and both of them exceed expectations at the time of the calculations in September.
Latest GDP estimates (confirmed today) indicate an average growth of 4.78%, above the 4.5% considered by the Government. And average non-housing inflation in November was 7.46%, according to the INE’s first estimate, above the 7.1% considered by the executive.
This means that, mainly due to inflation, in the case of the lowest pensions, it may be necessary to add four or five tenths to the government’s forecast of 4.43%, thus bringing the nominal growth in January closer to 4.8%. or 4.9%. The values are not exact, since it is enough to round the average GDP to tenths or hundredths for the output to change slightly. Pension increase at the first pillar yes, round to tenths.
This is due to the fact that in a normal situation, with growth above 3%, updating pensions to IFRS 2 would correspond to 20% of average GDP (0.96 points) plus the value of the average CPI excluding housing in November (7.46 points), but the Government now removes the amount of the emergency supplement corresponding to the half board already paid in October (3.57 points).
In the case of a pension of 500 euros, for example, an increase of approximately 24.2 euros will be applied. The difference guaranteed by the correction compared to what the government has already announced is 2.7 euros per month.
Similarly, pensions between IAS 6 and 12 could increase by four tenths (in addition to the 4% forecast, to 4.49%) and then, to IAS 12, by 3.5 tenths (to 3.89).
Nothing will prevent the executive branch, which has the majority, from amending its own law. At the proposal of the PS, an amendment to the Law on the State Budget for 2023 was approved, which authorizes the Government to make corrections by its decree.
Negosios has reached out to the Ministry of Labor and Social Security (MTSSS) for comment and is awaiting a response.
The Social Assistance Index (IAS) will also rise
Although it was announced that the Social Assistance Index (IAS) would rise by 8% next year, the government has not repealed the law which stipulates that this index, on which a number of social benefits depend, is calculated in the same way as the first pillar. pensions: 20% of GDP plus average inflation in the absence of housing at the end of the year (confirmed, this will be November).
The Department of Labor has already assured Business that it will also update IAS to comply with the legal terms. Thus, if the current figures are confirmed, this figure could increase by about 8.4% instead of the declared 8% to 481.09 euros in 2023.
The IAS depends, for example, on the minimum and maximum amount of the unemployment subsidy, the amount of the social unemployment subsidy and the updated levels of various benefits, including pensions. This should also depend on the RSI value, a legal rule that has been forgotten in recent years.
The news was last updated at 12:49 pm with estimates slightly adjusted for a new average calculated from today’s GDP data. The IAS value has been adjusted to EUR 481.09.
Euribor climbs three and six months to new highs in almost 14 years
Euribor rates rose today to new highs since the beginning of 2009 in three and six months and remained at the level of 12 months, but also at the maximum level.
The six-month Euribor rate, most used in Portugal for home loans and entering positive territory on June 6, rose today to 2.442% plus 0.006 points, a new high since January 2009.
The six-month average Euribor rose from 1.596% in September to 1.997% in October.
The six-month Euribor has been negative for six years and seven months (from November 6, 2015 to June 3, 2022).
The three-month Euribor, which entered positive territory for the first time since April 2015 on July 14, also rose today, setting a new high since February 2009 at 1.984% plus 0.030 points.
The three-month Euribor was negative between 21 April 2015 and 13 July last year (seven years and two months).
The three-month average Euribor rose from 1.011% in September to 1.428% in October.
For 12 months, Euribor has not changed today as it was once again set at 2.892%, the same value as on Monday and the highest since January 2009.
After rising to 0.005% on April 12, positive for the first time since February 5, 2016, the 12-month Euribor has been in positive territory since April 21.
The average Euribor rate for 12 months increased from 2.233% in September to 2.629% in October.
Euribor began to rise more significantly from February 4, after the European Central Bank (ECB) admitted that it could raise key interest rates this year due to rising inflation in the eurozone, and the trend accelerated with the start of the Invasion of Ukraine on February 24.
On October 27, to curb inflation, the ECB raised three key interest rates by 75 basis points, the third consecutive increase this year, after raising three interest rates by 50 basis points on July 21. growth after 11 years, and on September 8 by 75 basis points.
Changes in Euribor interest rates are closely linked to increases or decreases in ECB key interest rates.
Three-, six- and 12-month Euribor rates hit record lows respectively: -0.605% on December 14, 2021, -0.554% and -0.518% on December 20, 2021.
Euribor rates are set at the average rate at which a group of 57 eurozone banks are willing to lend money to each other in the interbank market.
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