The sub-regional Forum of the PERC Economists Network is taking place in Chisinau

According to a survey carried out by the International Labor Organization (ILO), the Global Wage Report for the years 2016-2017, the economic crises recorded in recent years show that the real level of wages at the global level has decreased and the purchasing capacities of the population have diminished. This is what Mariko Ouchi, senior ILO specialist, said on Wednesday, May 10, in her opening speech at the sub-regional Forum of Economists Network of the Pan-European Regional Council (PERC) of the International Trade Union Confederation (ITUC).

The Forum, held in Chisinau on May 10-11, organized by ILO and ITUC, includes economists, trade unionists and social-economic policy makers from fifteen countries in Europe and Central Asia.

In his greeting speech, Oleg Budza, president of the National Trade Unions Confederation of Moldova, talked about the socio-economic situation in the Republic of Moldova, the wage level, the actions of trade unions in the last period aimed at protecting and defending the interests and rights of its members.

“We have a very low payment in Moldova, and an important problem is that we have three types of minimum wages, which leads to difficulties in the negotiation process. We opt for a single payroll system in the budgetary sphere. The new pay system should be transparent, stimulate employees, and contribute to attracting and employing young people. But this reform must be carried out in parallel with the diminution of the informal economy, which has reached more than worrying quotas,” stressed Oleg Budza.

Mariko Ouchi, senior ILO specialist, has reported that there are different approaches to the minimum wage at international level, and the ideal formula in this regard must be derived from the socio-economic peculiarities of a country.

Referring to the Global Wage Report for the years 2016-2017, which can be downloaded in English here, Mariko Ouchi mentioned that not only the countries in the region are facing a low salary but also the countries of Western Europe, as Spain or Italy where there is a significant reduction in wages.

Anton Leppik, Executive Secretary of ITUC-PERC, said that this conference will give new impetus to the development of relations between partners in the region, being a good opportunity to exchange experience.

Ronald Janssen, a Swedish expert within ITUC-PERC, mentioned that there are no minimum wages in Sweden, but the focus is on the quality of wages, which will provide citizens with a decent living.

“Higher wages mean positive effects for the economy, because consumption is stimulated, and economic growth is taking place. And if wages are low, the economy stagnates. The strategy focused on low or minimum wages is not sustainable. Given the increasingly global nature of the economy, the workforce will go to that country where it is appreciated at true value, a situation observed in Moldova and other countries in the region,” said Ronald Janssen.

For two days, those present will discuss different types of payment, analyze the level and particularities of wage systems in different countries, and design the trade union activities to develop or strengthen salary positions (establishment of the minimum wage, fair wage distribution, negotiation of wages) as well as policies to combat the informal economy.

Department of mass media and international relations