De Unie is committed to a fair collective labor agreement for all employees
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- In 2024, ING employees will have on average 14% less purchasing power than three years earlier, while the average in the Netherlands is 3% less purchasing power.
- Total wage growth at ING is much lower than in other collective labor agreements. Civil servants have received three monthly salary increases (individual + collective) in three years.
- ING's profit has increased by more than 2018% compared to 50. The profit distribution to shareholders even increases by 150% during this period.
- What do you think is a reasonable wage demand for the coming collective labor agreement? Let us know!
What about wage developments at ING?
The summer is coming to an end, and with it negotiations for a new collective labor agreement are approaching. That is why we now focus on wage developments at ING in the past period. In our latest newsletter we already noted that the individual (scaled) wage increases at ING lag significantly behind other collective labor agreements. But what about collective wage increases? And how does the total wage development (both individually and collectively) compare to the rest of the Netherlands?
Investigation
We expect that remuneration will once again be a difficult topic during the negotiations. In the near future De Unie formulate the negotiating position. That is why now is the right time to give your opinion on the desired wage development in the upcoming collective labor agreement. You can give your opinion through the survey De Unie to fill in. What aspects should we take into account when determining the wage demand? The survey is now closed. Thank you all for your cooperation.
ING's collective wage development has fallen compared to the rest of the Netherlands
Since the COVID pandemic, there has been historically high inflation. The blue line in the figure below shows the average collective labor agreement wage in the Netherlands, adjusted for inflation. Inflation started to rise sharply at the end of 2021, and initially wages could not keep up with these price increases. This resulted in a significant drop in purchasing power for the average employee. However, most collective labor agreements have now recovered considerably, partly thanks to the significant collective wage increases agreed in new collective labor agreements. As a result, the average collective labor agreement wage (adjusted for inflation) is almost back to the 2018 level.
At ING (the orange line) the picture is unfortunately less rosy. In August 2024, the average ING employee will earn approximately 14 percent less than three years earlier. This amounts to a decline of one and a half months' salary.
Total wage growth at ING lower than ABN AMRO and Rabo
As an employee at ING, you will receive a total pay increase of 18% over three years, provided you receive an average rating. Although this may seem attractive at first, a comparison with other collective labor agreements shows that ING is lagging behind. At ABN AMRO and Rabo the pay increase varies between 25% and 36%, and at the national government even 45%, three monthly salaries more than at ING.
Accountability:
- The figures for inflation and average collective labor agreement wages in the Netherlands come from Statistics Netherlands (CBS).
- The figures on collective and individual wage increases at other companies come from the relevant collective labor agreements. Where the individual reward depends on the assessment, the most common assessment has been used.
- ING gave a differentiated collective pay increase in 2023. Our graphs assume an average increase of 4%, all employees have received at least this percentage. The pension indexation for 2023 was also calculated at a 4% collective salary increase.
Fair sharing – The development of profits and the profit distribution to the shareholders
Another approach is to base the wage requirement on the business results. If a company is in dire straits, a wage requirement aimed at improving purchasing power or market conformity may not be realistic. Wage moderation may then be necessary to ensure the survival of the company. But what if the company actually performs very well? Can we also share in the successes? This is a relevant question when formulating a wage requirement that takes both external and internal circumstances into account.
The table below shows the development of ING's net profit over recent years, taking 2018 as a reference point. In addition to the net profit, the distributions to shareholders, consisting of dividends and share repurchases, are also included. Finally, the table also shows wage development within ING over the same period. This comparative view provides insight into how the company's financial performance and shareholder compensation compare to employee wage increases.
In summary, we see that ING's net profit in 2023 will be more than 50% higher than in 2018. While shareholders received a significant 150% increase in benefits, employees only received a 10% pay increase in the same period. These figures show that employees have benefited less from the positive financial results in recent years than shareholders. Based on this analysis, it appears that there is still a lot of room for ING employees to make up when it comes to a fair distribution of profits.
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Contact
Do you have questions about this message? Please contact us. This can be done by sending an email to: mandy.raijmakers@unie.nl of inge.de.vries@unie.nl
