Rehn Says Salary Indexing May Hurt Competitiveness, L’Echo Says
Wage increases for Belgian employees should be more firmly linked to productivity and not driven by “inflexible” indexing, Olli Rehn, the European Union’s economic and monetary affairs chief, said in an article published in L’Echo.
The European Commission, the 27-nation EU’s executive arm, has “confirmed the importance of seeing to it that salary increases better reflect work productivity and competitiveness,” Rehn said in the article published today.
The commission is not opposed to salary indexing in principle, Rehn said. “However, if the indexing method remains inflexible, that will represent a danger for cost- competitiveness,” he told L’Echo.
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