Publications
Partners
Labour Q&A with Terry Bell
Fin24 user Ndumiso Makhathini enquires about how wage deals are determined in the face of rising inflation, over time.
He writes: “Terry, what I don't understand with this bargaining council, they want to sign for a minimum percentage, but petrol and food goes up daily.
“Does it make sense?”
Terry Bell responds:
You are right, Ndumiso. Wage deals are based on the situation at the time but, within months (or less) any income advantage can be eaten away by inflation.
This is why unions are becoming increasingly wary of fixed percentage agreements extending beyond one year.
The buying power of wages is usually eroded by the time the next pay talks come round.
Most workers in recent times have experienced pay cuts, in terms of buying power, in the months leading up to their next wage talks.
*Have a question for Terry? Drop us a line.
- Fin24
* Terry Bell is an independent political, economic and labour analyst. Views expressed are his own. Follow him on twitter @telbelsa.
Disclaimer: All articles and letters published on Fin24 have been independently written by members of the Fin24 community. The views of users published on Fin24 are therefore their own and do not necessarily represent those of Fin24.
Fin24 user Ndumiso Makhathini enquires about how wage deals are determined in the face of rising inflation, over time.
He writes: “Terry, what I don't understand with this bargaining council, they want to sign for a minimum percentage, but petrol and food goes up daily.
“Does it make sense?”
Terry Bell responds:
You are right, Ndumiso. Wage deals are based on the situation at the time but, within months (or less) any income advantage can be eaten away by inflation.
This is why unions are becoming increasingly wary of fixed percentage agreements extending beyond one year.
The buying power of wages is usually eroded by the time the next pay talks come round.
Most workers in recent times have experienced pay cuts, in terms of buying power, in the months leading up to their next wage talks.
*Have a question for Terry? Drop us a line.
- Fin24
* Terry Bell is an independent political, economic and labour analyst. Views expressed are his own. Follow him on twitter @telbelsa.
Disclaimer: All articles and letters published on Fin24 have been independently written by members of the Fin24 community. The views of users published on Fin24 are therefore their own and do not necessarily represent those of Fin24.
