Was ist der Zweck der Indexierung, wenn alle Preise steigen, nachdem wir sie erhalten haben? Und das meiste, wenn die Preise mit der Zeit um mehr als 2,5 % steigen!!
Do you think that they wouldn’t increase their prices if there was no index?
Roccia_32 on
It’s like the snake biting its tail. The indexation falls because the prices have risen and the prices keep rising because the indexation has fallen…
Robin1268 on
Index is triggered AFTER prices have risen, it’s purpose is to catch up to preserve purchase power. The fact that prices also rise after the index is triggered is due to many factors, index being only one of them.
MCKitkat182 on
The indexation is only there to equalize the loss of purchasing power from a rising inflation. Prices are globally rising, both in countries without index and with index. So the index alone doesn’t mean inflation is on the rise, or rises higher than in countries without an indexation.
It would already help a lot, if the government could push down the cost of housing that represents more and more of a financial burden within budgets and at the same time, would crank down on businesses massively profiting of price increases. Germany as an example, reduced the cost for petrol but the companies only gave a fraction of that reduction back to consumers.
Same for food prices, they are going up and yet the farmers are not seeing any money from that increase? So the question is: where is that price increase going? The big companies are literally profiting while smaller companies are being hurt by the behaviour of their „big brothers“.
IactaAleaEst2021 on
To annoy the indoctrinated priests of neo-liberalism. If companies don’t want a wage index, they could simply NOT raise prices in the first place.
Formal_Pace5577 on
Luxembourg imports most of the stuff, so the index adjustment doesn’t impact most of the manufactured goods.
But i agree pricing is a signal, if the price of apple goes up, you have to reduce eating apples.
mro21 on
The price actually increase before we get it as well 🤣
rw-rw-r-- on
Salary indexation has only a very limited impact on inflation:
„Il en ressort qu’une indexation génère à très court terme un surplus d’inflation relativement marginal, de l’ordre de 0,2 point de %, un résultat en ligne avec ceux d’études antérieures.“
Indexation increases the cost of staff salaries, and inflation makes the price of goods rise. Businesses adjust their prices upwards in response to this.
This feedback loop is a well-known criticism of salary indexation.
The real benefit of indexation is fairness: everyone gets the same baseline percentage increase, without their unions having to fight for it.
It works fairly well in Luxembourg because the government can afford the public sector pay rises and there is a strong culture of consensual negotiations with the unions.
Strikes are rare, but notably the only post-war general strike in 1982 was a response to an indexation freeze, and it was successful, so indexation is here to stay.
ForeverShiny on
While this isn’t illegal, it’s absolutely a scummy business practice.
I assume this is a daycare, so let’s think through it: their cost of lavour goes up by 2.5% sure, but even at a daycare that’s only a part of their overall cost. They most likely have to pay rent, pay for food, amortize their furniture etc. so by increasing their overall prices by 2.5%, they’re actually taking you for more than their costs are going to rise for them.
It’s just blatantly taking advantage of the opportunity to raise their costs on you which is not a sign integrity or having your clients best interests at heart
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Do you think that they wouldn’t increase their prices if there was no index?
It’s like the snake biting its tail. The indexation falls because the prices have risen and the prices keep rising because the indexation has fallen…
Index is triggered AFTER prices have risen, it’s purpose is to catch up to preserve purchase power. The fact that prices also rise after the index is triggered is due to many factors, index being only one of them.
The indexation is only there to equalize the loss of purchasing power from a rising inflation. Prices are globally rising, both in countries without index and with index. So the index alone doesn’t mean inflation is on the rise, or rises higher than in countries without an indexation.
It would already help a lot, if the government could push down the cost of housing that represents more and more of a financial burden within budgets and at the same time, would crank down on businesses massively profiting of price increases. Germany as an example, reduced the cost for petrol but the companies only gave a fraction of that reduction back to consumers.
Same for food prices, they are going up and yet the farmers are not seeing any money from that increase? So the question is: where is that price increase going? The big companies are literally profiting while smaller companies are being hurt by the behaviour of their „big brothers“.
To annoy the indoctrinated priests of neo-liberalism. If companies don’t want a wage index, they could simply NOT raise prices in the first place.
Luxembourg imports most of the stuff, so the index adjustment doesn’t impact most of the manufactured goods.
But i agree pricing is a signal, if the price of apple goes up, you have to reduce eating apples.
The price actually increase before we get it as well 🤣
Salary indexation has only a very limited impact on inflation:
„Il en ressort qu’une indexation génère à très court terme un surplus d’inflation relativement marginal, de l’ordre de 0,2 point de %, un résultat en ligne avec ceux d’études antérieures.“
[https://statistiques.public.lu/dam-assets/catalogue-publications/regards/2017/regards-10-17.pdf](https://statistiques.public.lu/dam-assets/catalogue-publications/regards/2017/regards-10-17.pdf)
Don’t fall for the anti-indexation propaganda 😉
Indexation increases the cost of staff salaries, and inflation makes the price of goods rise. Businesses adjust their prices upwards in response to this.
This feedback loop is a well-known criticism of salary indexation.
The real benefit of indexation is fairness: everyone gets the same baseline percentage increase, without their unions having to fight for it.
It works fairly well in Luxembourg because the government can afford the public sector pay rises and there is a strong culture of consensual negotiations with the unions.
Strikes are rare, but notably the only post-war general strike in 1982 was a response to an indexation freeze, and it was successful, so indexation is here to stay.
While this isn’t illegal, it’s absolutely a scummy business practice.
I assume this is a daycare, so let’s think through it: their cost of lavour goes up by 2.5% sure, but even at a daycare that’s only a part of their overall cost. They most likely have to pay rent, pay for food, amortize their furniture etc. so by increasing their overall prices by 2.5%, they’re actually taking you for more than their costs are going to rise for them.
It’s just blatantly taking advantage of the opportunity to raise their costs on you which is not a sign integrity or having your clients best interests at heart