Fidest – Agenzia giornalistica/press agency

Quotidiano di informazione – Anno 32 n° 250

Posts Tagged ‘Federation of European Employers’

Why the eurozone pay bubble is damaging recovery

Posted by fidest press agency su venerdì, 9 agosto 2013


Recession (Photo credit: Anders V)

Although there has been much talk about the decline in real pay levels that resulted from the post 2007 economic decline, workers across the eurozone have actually fared better relative to their company’s fortunes following the downturn rather than during the period leading up to it. The sustaining of employee salaries through the recession has also hit company profitability and the level of re-investment in fixed capital. The Federation of European Employers reports … According to the latest figures published by the European Commission’s statistical agency Eurostat, in the first quarter of 2002 total employee remuneration in the eurozone stood at 60.4% of gross value added. When the downswing came in 2008 it fell to 59.2%. However, as the recession took hold and company value added fell sharply through the Autumn and Winter of 2008/9 employee remuneration climbed to 62.1% of value added. Since then remuneration levels have sustained much of their recessionary gains to stand at 61.1% of value added in the first quarter of this year.Gross fixed capital formation did not enjoy such a level of shielding during the downturn. In the first quarter of 2002 it amounted to 21.5% of gross value added. By the second quarter of 2009 it had fallen to 19.8%, but then it continued to fall to just 18.8% by the first quarter of 2013. Commenting on these developments during an online debate from his base in the south of France today the Secretary-General of the Federation of European Employers, Robin Chater, warned that ” If there is to be a sustained recovery during the eurozone, resources are going to have to be diverted away from employees back into long-term investments. Companies have sustained their positions by substituting labour for capital for far too long and that is exposing the European economy to increasingly capital intensive competitors in North America and the far east”.

Posted in Economia/Economy/finance/business/technology, Estero/world news | Contrassegnato da tag: , , , | Leave a Comment »

EU would exceed its powers by limiting bankers’ pay

Posted by fidest press agency su giovedì, 28 febbraio 2013

The agreement reached yesterday between representatives of the European Parliament and officials from the European Commission to place a cap on bonus payments in the financial services sector cannot be lawfully ratified by the Council of Ministers because it exceeds their powers.
Although preliminary agreement has been reached between the European Parliament and the European Commission on the limiting of bonus payments in the financial service sector it has still to be approved by the Council of Ministers. This is generally regarded as a formality, yet does the EU have the powers to impose such a cap on variable pay levels? According to Robin Chater, Secretary-General of the Federation of European Employers (FedEE) – and a former advisor to The European Commission. “What EU negotiators have failed to apprecate is that such an action is beyond the powers vested in the European Union under the EU Treaty. Article 153 (5) of the Treaty clearly states that EU legislative powers shall “not apply to pay”. Furthermore, even if the Council’s powers were not challenged in this matter financal institutions would remain free to increase base salaries to reward and retain key staff.” Chater also points out that “what politicians and bureaucrats have always ignored is that high remuneration levels in the financial sector – and especially substantial variable payments – serve to minimise fraud levels, retain talent, drive high performance and encourage continuity of employment. That is why corruption is so rife in many states where senior banking staff are badly paid. Many EU states have long coveted the City of London’s success as an international financial centre and regarded high bonus payments as its Achilles’ heel. This measure is therefore no more than an attempt to exploit the current vulnerability of the City by riding on the back of the collective jealousy of bankers’ pay in public opinion and the recent downgrading of the UK’s international credit rating.”
What is FedEE?
The Federation of European Employers (FedEE) is the leading organization for multinational companies operating in Europe. It was founded in 1989 with assistance from the European Commission and has its head office in London, UK. The Federation is a direct member organisation with corporate members throughout the world.

Posted in Estero/world news | Contrassegnato da tag: , , , | 4 Comments »

New EU index of labour market trends

Posted by fidest press agency su giovedì, 19 aprile 2012

Policy makers, analysts, traders and businesses frequently need to understand the complex dynamics of national labour markets. However, up to now this has meant looking at a number of statistics that only partially tell the story. Launched today, the new labour market index (LMI) from the Federation of European Employers (FedEE) finally provides a composite measure that shows how well such markets are working. FedEE’s new labour market index (LMI) measures the degree of health of an economy by analysing the relationship between labour demand and supply, adjusted by real labour costs per unit of output, conventionally used as an indicator of economic competitiveness. To view the latest LMI graph please visit In the EU27 as a whole the labour market was expanding throughout 2010. However, the trend has been downward since Q2 2011 – mainly due to the rise of real earnings relative to production. FedEE is currently closely monitoring both Germany and Spain. Germany is the largest national economy in the EU and Spain the largest of the most troubled Eurozone countries. The German index began 2010 well above the EU27 benchmark and continued to rise throughout 2010-12, with all variables performing better than EU averages. Moreover, as the log-plot reveals, it has grown at an approximately constant rate, except for the marked deceleration of Q2 2011. By contrast, Spain’s labour market index began 2010 well below the EU-average level and has continued to deteriorate over the entire period. In more detail, as the log-plot highlights, the Spanish index was characterised by the alternation of periods of quasi-zero growth and periods of substantial negative growth rate, such as in Q2 2010 and Q4 2011. This would appear to be primarily due to its poorly-performing industrial sector leading to a sustained decrease in labour demand. This trend was not being driven by a strong surge in real labour costs – as Spanish labour cost and consumer price movements have been generally in line with EU averages.
Speaking at the launch of the new index today Robin Chater, Secretary-General of the Federation of European Employers (FedEE), said “Looking at unemployment rates alone can often be highly misleading as there is often a lag between job affordability (real labour costs per unit of output) job creation and the filling of new vacancies. The index shows how these fundamentals come together into a true swing of supply and demand. We plan to increase the range of countries covered by the index – but at the outset we thought it would be helpful to focus on two national marketplaces and reveal just how much the Spanish labour market is in an ongoing state of collapse.”

Posted in Estero/world news, Welfare/ Environment | Contrassegnato da tag: , , , | Leave a Comment »