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.”
The European Central Bank (ECB) has its hands tied because its monetary policy tools are not enough to deal with a house price boom, John Mullbauer, a professor at the University of Oxford, warns in Real Estate Booms and Busts. .: Implications for Monetary and Macroprudential Policy in Europe”, released as part of the ECB Forum, which continues this Wednesday in Sintra.
The study concludes that there is little room for the ECB to “go against the tide” due to the heterogeneous environment among its 19 member states and therefore calls for a change in the models applied by the Monetary Policy Council led by President Christine Lagarde.
For a specialist, there is a direct relationship between the transmission mechanisms of monetary policy and real estate purchase and rental prices, which, in turn, indicates signs of a country’s economic health.
The paper highlights that financial crises are often preceded by easing lending standards and a subsequent increase in lending, as well as an increase in loans, accompanied by a sharp increase in property prices.
And at the epicenter of the housing crisis is the banking crisis. “There is an important relationship between lending conditions and non-performing loans (non-performing loans, i.e. non-performing loans). NPLs are important components of credit cycles. [e consequentemente] banking crises,” explains John Mullbauer.
NPLs are a problem for banks for several reasons. On the one hand, the lending institution may lose some or all of the funds it has loaned and no longer have the expected income from collecting interest and fees.
“This is a good paper. It is necessary to know how to calibrate monetary policy in moments of calm and more agitated moments. [para o mercado]”, comments Giovanni Del’Ariccia during the forum.
The deputy director of the International Monetary Fund’s “research” department also insisted on distinguishing between what he classified as “good” and “bad” housing booms, citing growth or slowdown in employment in various sectors as a “good measure”. ., from construction to “communal services” between these two phenomena.
The spread of telecommuting and flexible work, the war in Ukraine, currency fluctuations and widespread inflation are having a significant impact on employee pay, which could have serious implications for companies in the global battle for talent. Conclusion from the Cost of Living 2022 study launched by a consulting company Mercer, which estimates the cost of living in 227 world cities for expatriates based on a pooled analysis of the comparative cost of more than 200 items in each location, including housing, transportation, food, clothing, home and entertainment. Leadership again belongs to Hong Kong. Zurich (2nd), Geneva (3rd), Basel (4th) and Bern (5th) round out the top five most expensive places in the world for expats.
Thiago Borges, business leader at Mercer Portugal, said: “The volatility caused by COVID-19 and exacerbated by the crisis in Ukraine has added to global economic and political uncertainty. This uncertainty, which goes hand in hand with significant increases in inflation in much of the world, worries expatriates about their purchasing power and socioeconomic stability.”
Foreigners paid using the origin approach usually receive a living wage allowance to maintain their purchasing power in destination countries. This subsidy is calculated by applying a cost-of-living index to a portion of workers’ net wages (their “disposable income”, i.e. the amount they spend on goods and services used daily in their place of residence).
Both inflation and exchange rate fluctuations directly affect the purchasing power of workers working outside their country of origin. The rise of remote and flexible work has also forced many employees to rethink their priorities, work-life balance and where they live. These conditions could have serious implications for companies that need to rethink their mobility strategy to stand a chance in the global battle for talent. On the other hand, this situation also provides cities with an opportunity to attract foreign investment.
“For organizations, the financial well-being of employees is a key factor in their ability to attract and retain the best talent, and with reliable and accurate data, organizations can define clear strategies for structuring their employee mobility packages. International players in unstable times”. , added Thiago Borges.
He adds: “Working and economic conditions around the world are evolving faster than ever before. Companies must carefully navigate international contract costs/packages during times of uncertainty and adapt to the new world of work to ensure business sustainability and a sustainable future for their expatriates. “, also noting that “companies need market intelligence and clear strategies to put into practice expatriate mobility packages that are competitive in uncertain times while ensuring the financial well-being of their employees, as well as business efficiency, transparency and fairness,” it said. Marta Diaz, Head of Compensation at Mercer Portugal, holds key talent,” he added.
Mercer cost-of-living data helps organizations understand the importance of tracking currency fluctuations and assessing inflationary and deflationary pressures on goods, services and housing across regions of operation. The data also helps define and maintain compensation packages for employees in international operations. In addition, the cost of living in a location can have a significant impact on its attractiveness as a place for talent and influence the decision of organizations to choose a location to expand and transform their geographic footprint.
TOP 10 most expensive
Mercer’s Cost of Living 2022 study places Copenhagen (Denmark) 11th in the world rankings, London (UK, 15th), Vienna (Austria, 21st) and Amsterdam (Netherlands, 25th) , as well as other well-known cities in Western Europe, in addition to the aforementioned Swiss cities of Zurich, Geneva, Basel and Bern.
The most expensive city in Eastern Europe is Prague (Czech Republic), which ranks 60th out of 227 cities. It is followed by Riga (Latvia, 79th), Bratislava (Slovakia, 105th) and Tallinn (Estonia, 140th). The cheapest city in Eastern Europe is Sarajevo, Bosnia and Herzegovina, ranked 209th.
In turn, Lisbon, which has dropped 26 positions in the ranking, is now below the middle of the table of European cities, yielding to cities such as Madrid or Barcelona.
Major stocks across the Atlantic closed in negative territory and technology pulled Wall Street into the red. The report, which showed Americans more pessimistic about the outlook for the economy, didn’t help.
The Dow Jones industrial index fell 1.56% to 30,946.99 points, while the Standard & Poor’s 500 fell 2.01% to 3,821.55 points.
For its part, the Nasdaq Composite Technology Index fell 2.98% to 11,181.54. Despite this, it was the downfalls of giants like Amazon and Tesla that mostly took place.
Operators have taken another “reality shower” following a disturbing consumer confidence report, Bloomberg reports. The barometer of consumer expectations for economic development, reflecting a six-month forecast, fell to almost a decade’s low, discouraging investors.
The data comes at a time when analysts are still optimistic about corporate earnings in the quarter that is about to end, as record net profits are forecast for the S&P 500 group of companies.
However, the bleak economic outlook pushed Wall Street’s major indexes into negative territory after gaining about 1%.
The quarterly recovery in asset portfolios also caused volatility in Tuesday’s session.
For strategists at Goldman Sachs, earnings forecasts for companies this quarter are overly optimistic, which the bank says puts stocks at risk of further losses as Wall Street analysts cut their estimates.
Max Kettner, strategist at HSBC, also believes that stocks are not yet reflecting the impact of a potential recession and corporate results expectations are likely to be revised down.