Generation 2004 is closely following the financial impact of inflation and rising energy costs to all staff in 144 Delegations around the world. We noted that especially for Delegations which are paid in local currencies (whether legally or not, we hear you Turkey!), colleagues are severely harmed by growing inflationary pressure and are experiencing deteriorating purchasing power. To illustrate (this is not an exhaustive list, information is based on available internet figures of inflation statistics [*] and the latest available information of salary review status) with a few examples:
India Delegation – Last revised grid 2019. Reported inflation rate for 2020: 6.18%; 2021: 5.56%; 2022: 4.88% (potential impact: +/- 17.5% difference)
Papua New Guinea Delegation – Last revised grid 2019. Inflation rate for 2020: 4.87%; 2021: 4.5%; 2022: 6.4% (potential impact: +/- 16.6% difference)
Peru Delegation – Last revised grid 2019. Inflation rate for 2020: 1.83%; 2021: 3.98%; 2022: 5.46% (potential impact: +/- 11.66% difference)
Even colleagues in Delegations with hard currency salary grid and payment have reported similar challenges and find it extremely difficult to catch up with the cost of living. For countries which experienced inflation of more than 50-100% in local currencies, we would like the European External Action Service (EEAS) to remind these Delegations of the possibility of intermediate revision. Delegations which might experience this issue are the following (figures as of December 2021):
- Venezuela — 1198.0%
- Sudan — 340.0%
- Lebanon — 201.0%
- Syria — 139.0%
- Zimbabwe — 60.7%
- Argentina — 51.2%
- Turkey — 36.1%
- Ethiopia — 33.0%
To this end, Generation 2004 believes that it is extremely important that the salary-survey backlog should be dealt with as soon as possible. There are Delegations which still have a salary grid last reviewed in 2018 or 2019; and one specific case of the Libya Delegation still has their last grid dated in 2016.
Upcoming review exercise of the salary-review method
The current salary-review method was due to have a social dialogue for its review in May 2021. Generation 2004 requests that an element relevant to reflect the impact of inflation be added to the method. As some countries are under-reporting the reality of the inflation rate, we would advocate that other trusted sources to be used as references (e.g., Bank of America/Deutche Bank/OSCE, World Bank, etc.)
The EEAS should also have a dialogue with comparators to ensure that all interim salary increases implemented by them are able to be factored into the salaries of local agents (LAs). We are informed that the United Nations has introduced intermediate improvement to salaries in some countries where salaries were paid in local currency but they are not (or not yet) reflected in the updated salary grid.
Increasing cost of energy
In line with the EU’s green policy, Generation 2004 believes that the upcoming teleworking decision for Delegations should include flexibility in teleworking for LAs. These are the staff members who often reside much further from the Delegation office compared to expatriated colleagues. Alternatively, the EEAS could consider providing transportation/ an energy allowance to help ameliorate the impact of fuel cost on LAs’ livelihood.
Generation 2004 invites colleagues to come forward with specific examples that so that we can make this about real people and real circumstances. Please send us your experiences!
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[*] Figures are estimated and quoted for point illustration only. There are no corresponding Eurostat figures published.
