Employers’ organisation urges government to consider wage index freeze
Employers’ organisation Voka has called on the federal government to prepare a temporary freeze on wage indexation on Monday, arguing that rising energy prices risk placing an unsustainable burden on businesses.
The proposal comes amid the economic fallout from the war in the Middle East, which has driven up energy costs and is expected to push inflation higher than previously forecast. Because wages in Belgium are automatically indexed to inflation, companies face rising labour costs as the cost of living increases.
“For certain companies and sectors, that would be one shock too many,” the organisation warned.
Limit wage increases
Voka is specifically asking that the first 2 per cent wage increase not be applied during the next indexation round. As wage indexation occurs at different times depending on the sector, the measure would take effect at each sector’s next scheduled adjustment.
Managing director Frank Beckx said the measure would provide much-needed relief. “This is crucial to give companies some breathing room in extremely difficult times,” he told Het Laatste Nieuws.
“If that does not happen, the bill for the crisis will fall entirely on companies, and we risk enormous damage to our economy with more bankruptcies and mass layoffs. Without competitiveness, the purchasing power of families is not guaranteed either.”
A similar index freeze was introduced in 2015, with the aim of reducing Belgium’s wage cost gap with neighbouring countries and strengthening the competitiveness of its businesses.
© BELGA PHOTO OLIVIER HOSLET
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