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Work: wage inequality in pay between Eastern and Western UE

Paper published by the European Trade Union Institute

08 May, 11:07
(ANSA) - UDINE - Wage inequality between pay in Poland, Hungary and the Czech Republic, and pay in Germany, is bigger today than it was in 2008. It turns out by a Working Paper 'Why central and eastern Europe needs a pay rise', published on Monday by the European Trade Union Institute (ETUI) and written by Bela Galgoczi. The comparison is made with German wages because it is the biggest investor and trading partner of the region.

In 2008 the average gross wage in Poland was 33% of the average gross wage in Germany, by 2015 it was down to 29.3%.

In Hungary was 31.9% in 2008, and down to only 25% in 2015.

In the Czech Republic it was 34.9% in 2008, and down to only 30.9% in 2015.

The gap started widening after 2008, and the convergence gains in the years 2000-2008 have been lost. "Workers in Poland, Hungary and the Czech Republic are being exploited as cheap labour" said Esther Lynch, ETUC Confederal Secretary. The Working Paper also shows that productivity increased more than real wages (adjusted for inflation) in Poland, the Czech Republic, Slovakia, Latvia , Slovenia and Estonia in the period 2008-2015; that real wages decreased in Romania and Croatia while productivity increased; and that real wages decreased more than productivity in Hungary. (ANSA).

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