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48% of companies gave increases despite not having closed joint ventures

2020-08-26T11:16:18.686Z


Only 19% of workers reached wage agreements through the unions. But some employees are getting raises, according to a survey.


08/26/2020 - 6:01

  • Clarín.com
  • Economy
  • Economy

According to data from the Labor Ministry, so far this year only 19% of private workers have managed to agree to wage increases in parity, with increases of between 23 and 30%. With this reality, some companies began to give salary increases, despite not having reached an agreement with the union yet.

According to a survey carried out by the consulting firm Mercer,  48% of the companies granted increases to the personnel within the agreement.  Of this group, 43% gave an average increase of between 15% and 30% for this population.

Only 30% of the companies did nothing to mitigate the loss of purchasing power of their employees within the agreement. 25% are still evaluating it; 21% have already carried out some action for the entire population within the agreement; 18% stated that it does not apply since they have already closed joint ventures; 5% did it selectively for certain collaborators and 4% did it for some agreements (if there were more than one). The total exceeds 100% because some companies selected more than one option.

Salary increases for employees within the agreement without parity. Mercer font

Of the group of companies that gave increases, 43% stated that they granted between 15% and 30% for this population; for 31% of the companies the increase was less than 15%; for 20% the increase was greater than 30% and 4% defined a fixed sum between $ 5000 and $ 10,000. In the case of companies that did grant an increase, it will be taken into account of future increases for 64% of the companies surveyed.

What do you expect for 2021

With an eye on 2021, only 17% said they had a budget for salary increases, with an estimated increase of 40% according to the market median, based on 232 companies consulted.

The survey also inquired whether companies are evaluating actions regarding the size of their current endowment based on the impact of Covid-19 and after the entry into force of Decree 329/2020, which prohibits layoffs.

The most frequently mentioned measures were the suspension of hiring planned for the current year (43%); mutual agreements in an early withdrawal program (22%); the suspension of personnel (14%); the retirement programs (12%), the reduction of endowment (5%); through mutual agreements in a voluntary retirement program (4%).

“Companies are making tough decisions and some employees may have to leave," said Clara Estevarena, Mercer's Director of Wealth. She added, "There are options to make the transition easier. Especially for older employees, accompanying them towards the new stage of life ”, 

How companies treat their employees about to retire. Mercer font.

In terms of the design of organizational structures, 43% indicated that they are redesigning the structures to meet the business needs based on the new context. On the other hand, 42% of companies will not modify their design or make adjustments to their staffing. 13% defined an organizational redesign to meet the new needs and 6% are reducing staff with different agreements without a definition of the design of the structure.

Regarding voluntary withdrawals, 4% responded that they have a program of this type; 16% design it case by case; 7% are evaluating it and 73% do not. Among the benefits included in these programs, the initial single payment prevails by 71% following the health plans, outplacement and pension advice.

Regarding early retirement, 4% have it established as a formal policy, 8% design it on a case-by-case basis, 6% are evaluating the implementation of this type of program in their company and 82% do not. In the cases in which they have this benefit, 44% offer it to their employees who are up to 5 years after reaching the legal retirement age , followed by 31% who establish this requirement up to 2 years prior to said age. Regarding the characteristics that define these plans, the health plan, the single initial payment, the payment of a monthly rent until retirement, and the management of the retirement process and pension advice prevail.

NE



Source: clarin

All business articles on 2020-08-26

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