Belgium: social partners sign cross-industry agreement 2011-2012

Indexation and wage norm.  The cross-industry agreement signed on Tuesday night provides for a wage norm 0.3% higher than inflation, i.e. a purely symbolic margin.  The social partners took account of the report of the Central Economic Council (Conseil central de l'Economie, CCE) published in early November (see our dispatch No.  100792), which showed that wage costs in Belgium were 0.4% higher than among its European competitors (France, Germany, Netherlands, among others).  Thus, businesses can’t increase wages more than this limit.  However, at the same time, wages will increase by 3.9% over two years, following inflation forecasts.  Indeed, unlike what employers wanted, the agreement doesn’t change the indexation of wages which, in Belgium, follows the cost of living.  Nevertheless, the agreement asks the CCE to look, within the coming months, into ways to limit the volatility of the indexation system, notably for energy prices.
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No. 100792), which showed that wage costs in Belgium were 0.4% higher than among its European competitors (France, Germany, Netherlands, among others). Thus, businesses can’t increase wages more than this limit. However, at the same time, wages will increase by 3.9% over two years, following inflation forecasts. Indeed, unlike what employers wanted, the agreement doesn’t change the indexation of wages which, in Belgium, follows the cost of living. Nevertheless, the agreement asks the CCE

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