It is also about maintaining skills, especially in IT, which tend to leave the country in large numbers.
The galloping rise in prices is causing social tensions worldwide. Employees demand raises to maintain their purchasing power.
In Russia, where inflation topped 17% in May, public companies will largely keep their hands in their pockets with significant hikes. Sberbank announced an average salary increase of 8.5%, effective July 1.
For its part, the Interfax agency, citing industry sources, reports that Gazprom will increase salaries by 10% in July.
It is also about retaining skilled workers, particularly in IT, who are fleeing the country in droves, either for political reasons or because they are looking for opportunities abroad, before Russia becomes further isolated.
price-wage loop
According to the Russian Electronic Communications Association quoted by R, almost a month after the start of Moscow’s “special military operation” in Ukraine, between 50,000 and 70,000 IT specialists decided to work at the “Foreign”.
According to a source quoted by The Bell, a Russian outlet, Sberbank could offer its IT staff pay rises of up to 20% to encourage them to stay in Russia.
Bear in mind that in France several sectors negotiated increases that were deemed insufficient by the unions. And according to a recent OpinionWay study for Grant Alexander, employees want an average increase of 8.5%, including 34% an increase of more than 5% and 28% between 6% and 10%.
However, there is a risk that a price-wage loop will be triggered. If wages rise too much against a backdrop of runaway inflation, companies risk raising prices to maintain margins. However, if prices rise, workers will demand new wage increases to maintain their purchasing power, and so on.
Olivier Chicheportiche Journalist BFM Business