The recession had a marked effect on wage increases in most European countries in 2009, according to the new annual review of industrial relations developments in the EU from Eurofound’s European Industrial Relations Observatory (EIRO).
The review, presented at the 9th European Congress of the International Industrial Relations Association (IIRA) in Copenhagen today, reveals that the (unweighted) average of collectively agreed nominal pay increases fell from 5% in 2008 to 4.2% in 2009. The inflation rate fell sharply, from 3.7% in 2008 to 1% in 2009, while average real pay rose by 2.9%, compared to 0.5% in 2008.
The report also reveals a trend towards ‘Short working time’ schemes (SWT) as a response to the economic downturn. These schemes include some or all of the following elements: negotiation on reduction of working time, pay reduction correlated, training during the time freed and governments’ support, both for compensation of earning losses and for financing training schemes.
Download and read the full report here <http://europa.us1.list-manage.com/track/click?u=46441f70124bed066f0803c16&id=20fcaebc89&e=0f9bbe336e>