After the government announcement, COFE assured that the salary adjustment is “insufficient”, since it will imply a reduction for the second consecutive year taking into account inflation.
The union of state officials indicated that “this new reduction is in addition to the 5% that was already lost in the January 2021 adjustment.”
“The January 2022 adjustment will be made up of 5.8% inflation expected for next year, plus 1.2% that the government mistakenly and intentionally calls ‘wage recovery’, when the median inflation expectations it issued the Central Bank of Uruguay in November is 7.9% for the year 2021 “, expressed COFE.
Loss of wages
The union indicated that “in order to start recovering wages, first you have to stop losing, and contrary to what you might think, the government continues to increase the loss of wages.”
“There is no recovery, but on the contrary there is a salary reduction, since the 2022 adjustment will be below inflation,” said COFE.
In addition, the loss of real wages in the public sector, added to the loss of wages in the private sector, “produce a new drop in the Average Salary Index, which has repercussions in the fall of pensions and pensions, which will also have a large reduction for second consecutive Year”.
The union proposes that the indicator to measure the evolution of wages has to be the Consumer Price Index (CPI) prepared by the INE, and reflects the accumulated inflation of the year.
