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ECB employees demand inflation compensation

ECB staff say inflation is too high.

By Mike Hesp
• 2 min read
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ECB employees demand inflation compensation

The employees of the European Central Bank think inflation is too high. ECB staff could soon strike because they want compensation for inflation. The responsible union, the International and European Public Services Organisation, has announced possible strikes for early 2023 if the ECB's top management does not agree to an inflation-adjusted pay raise. Under the current setup the institution only wants to pay 4.07 percent more salary — this would not even cover half of the current 10 percent inflation.

IPSO vice chair Carlos Bowles is not happy with the result. A lower real-term wage than last year would "undermine employee morale," Bowles told Bloomberg.

The background of the dispute is also a debate over the so-called wage-price spiral. If wages rise as fast as inflation, it could fuel inflation again — a scenario the ECB is keen to prevent.

The ECB is trying to keep inflation under control to some extent by consistently raising interest rates. To date they have failed to bring inflation down.

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