Echo Backpack Blowers

Why is it so difficult to finish his income?

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Overnight accommodation, food, clothing, pay its bills for electricity, gas and water constantly increasing pay its transportation, mandatory insurance, taxes, social security packages of all kinds, the addition is more and heavier end of the month.

course, we know most of the reasons for this situation: globalization and financialization of the economy, unbridled competition within Europe itself constantly draw wages down.

But another question, about which little is striking in the early 80s, the device indexing wages to inflation that protected until the power employee purchasing ...

More than eight million people now live below the poverty line (950 € per month) according to the latest study by the INSEE. This represents almost a eight households, single parent families are most affected. The poverty line is defined as representing 60% of the median of the French (about 1580 € in 2010)

More than 3 million workers are paid minimum wage (1343 € gross, which corresponds on average to 1055 € net or just slightly above the poverty line). Far from being well off, 30% of full-time employees (excluding temporary) receive a salary less than 1.3 SMIC (1745 € gross, which is averaging less than 1,370 € net).

The low level of wages is of course compounded by inflation, even if it is lower today than in the 80s. Some commodity prices of leisure and comfort have fallen (eg televisions) but the essentials (which can not happen) increasing regularly, constantly nibbling the purchasing power of households.

scenario A well established since the turn of 1982

Since the early 80's, governments and employers have become accustomed to propose in their respective sectors (public and private) a percentage of salary increase is always less than the price index, labor organizations proposing meanwhile, a higher percentage.

Secondly, often after a few demonstrations or strikes, the state and employers, pretending to retreat, putting forward a percentage increase greater than originally proposed but still less than inflation.

At the end of negotiations between social partners, the wage agreements were signed providing for a wage increase but certainly very rarely exceeds the rate of inflation. These agreements, called "better than nothing" is usually signed by the unions called "reformist" foremost among the CFDT, accompanied by the CFTC and CFE-CGC!

This scenario repeats itself and, willy-nilly, since 1982. It was under the presidency of François Mitterrand, the left has made a historic turning point. Wanting to fight against inflation, wage freezes and price was imposed from June to November.

In Public Service, the state blocked the wages that followed the price trends in previous years. He then encouraged private employers to do the same, inviting them to change wages based not on the rise actual prices, but the inflation rate "provided" by the government.

The terms of wage indexation on prices were one to one removed from the collective agreements in the years that followed. They were in fact considered illegal since an order of Antoine Pinay in 1959, after May 1968, they reappeared in certain conventions.

Then the Auroux laws reaffirmed their ban in the Labor Code, article L.141-9 "are prohibited under the Conventions or collective labor agreements, including clauses on minimum wage indexation growth or references to the latter for the fixation and revision of wages required by such conventions or agreements. "

In 1983, Jacques Delors, Minister of Economy and Finance and dad of the possible Socialist candidate for president in 2012, decided two austerity plans. The purchasing power of workers began to steadily decrease, the wage indexation was abolished without that unemployment decreases.

Since, in many occupational sectors, following the ban on revaluation automatic wage based on minimum wage and the absence of negotiations, the starting salary is less than the minimum wage! A bonus called "absorbable" is then paid to the employees concerned without affecting wages above the minimum wage. This practice is responsible for a wage settlement continues down the ladder.

A price index handy ...

price index calculated by INSEE, dating from 1946, does not reflect the everyday reality as far inflation concerns only the consumer price.

When a new product is sold, the price increase compared to the old product is not considered. This index does not say anything further indirect taxes in particular, which increases much faster than the inflation rate. As for rent increases authorized by the brand new benchmark rents (IRL), it is generally always above the official rate of inflation!

Finally, the Index has not incorporated the INSEE price increase camouflaged by the "rounded" made up significantly after the changeover!

As rightly recalls the CERC (research and costs), it is hardly surprising, under these conditions, a strong sense of regression predominates among employees because the loss of purchasing power far exceeds the (small) increase in the average net wage, calculated by INSEE.

And if for statisticians that organization, rising purchasing power of households is still slightly positive, because it relates to the fact that average household income is a mere mathematical average, falling any social and professional reality ...

This situation is particularly dramatic for 40% of employees who see each year, their individual wages down for other reasons such as changes in their working hours, unemployment, involuntary part-time work, the occupational cause for removal, etc..

remedies to the financial crisis made the situation worse

Today, with the financial crisis, we are entering a period when wage cuts are flatly announced openly by most European governments.

In Greece in particular:

wages frozen until 2014. Premiums in the 13th and 14th months (Christmas and Easter) suppressed for salaries above 3,000 euros per month capped at 1,000 euros for salaries less than 3,000 euros per month. Establishment of a new minimum wage for young people and long-term unemployed ...

In Spain:

Faced with a deficit 11.2% of GDP and record unemployment rate of 20%, the Socialist executive has initiated a plan for budget savings of 50 billion euros over three years: lower redundancy, reduction of 5% average wages of staff from June 2010 and complete freeze in 2011. The revaluation of pensions will also be frozen in 2011, except for the lowest of them. From 2011, with the birth of 2,500 euros established in 2007 to support the birth rate will also be deleted.

Thus in Ireland:

first country in the euro area to be in recession, Ireland took from 2008 austerity measures: reduction of 5 to 15% of salaries of civil servants, reduction of social benefits, including the unemployed ... And tucking income, a carbon tax and a tax on water (even for free here) are in addition to a general increase of income tax.

In Portugal:

Facing a record deficit of 9.4% of GDP in 2009, Portugal was presented as the second weak link after Greece. Same evils, the same remedies: a wage freeze in the civil service for four years, removal of certain allowances with the key, a comprehensive plan of privatization in the transport, energy, insurance and the position ...

And in France:

Nicolas Sarkozy, the French for taking congenital idiots, speaks of "strict policy" for failing to pronounce the word "rigor" but the measures taken by the François Fillon government will of course in the direction of a general decline in wages, pensions and various allowances.

The head of state and government spend so rigorous a rule imposed in response to the dogma of all-round reduction of public deficits and the diktat of financial markets. The tax elections are a prime example. By devoting more than 45 billion euros, the government of the burden of debt the first expenditure of the state!

By reducing expenses related primarily employees and lower income households (middle class and insecure), by deleting the operating expenditure and investment of the state, communities asphyxiant land (which helps make possible the implementation of social aid and solidarity) and refusing to invest in the fight against mass unemployment, the government itself creates the conditions to worsen the effects of the crisis, again in force or to create a new one.

The President of the Republic also shamelessly uses the old technique of communication is to present the successive reductions in the income tax as positive elements of his policy while at the same time, the increase in indirect taxes has become unbearable ( 83% total tax revenue of France ... ) and has made our country one of the most unequal in Europe.

The sliding scale of wages, most appropriate means to protect the purchasing power

If the principle of indexing wages to inflation , established in France in July 1952 guaranteed to all salaries and allowances a parallel evolution to that price, its abandonment in 1983 did not cause an outcry among organizations union, claiming more or less the leftist governments of the time.

Without doubt, the unions would not be too cheesy compared to all these economic experts, pseudo-consultants, where a reintroduction of wage indexation would harm economic development. Large organizations like the Organization for Economic Cooperation and Development (OECD) and International Monetary Fund (IMF), led today by the "socialist Dominique Strauss-Kahn are also hostile.

Yet This system exists in some countries like Belgium and Luxembourg. There also is automatic but not in Germany or the Netherlands: Trade unions must negotiate while systematically to offset the loss of purchasing power incurred since the previous negotiations as a result of inflation. It can take different forms (automatic adjustment of wages to each variation of the price index adjustment as soon as the selected index exceeds a certain threshold adjustment to fixed periods based on changes recorded, etc.).

And Contrary to what its detractors say, the scale sliding wage inflation does not help because it is based on facts that have already occurred and on the basis of actual price changes that has already occurred or during the preceding months.

In addition, it promotes solidarity among auto workers in those strong and weak areas and between active and inactive workers. It is a factor of social stability: wage negotiations can then focus on the real wage increase, since the automatic indexing only guarantees compensation of lower purchasing power. It also a factor for maintaining economic stability in the purchasing power is a factor of continued consumption and hence economic growth.

Having neglected the problem of defending the purchasing power, all successive governments since 1983 have a heavy responsibility in the financial difficulties faced by the millions of people. For nearly 30 years, sharing added value has thus moved from 11 points from labor to capital! Only 20% of employees n have no problems making ends meet month-end!

And has oday, the New Presidential Majority UMP-Centre, along with the SP, are light years of a restoration of wage indexation. But that does not look to jump in the eyes of leaders of major unions that seem to have erased their memory of this protective mechanism in the purchasing power of employees ...