Less automatic increases, more pay for work
Marc De Vos supports the idea that young workers should earn more, earlier in their careers, but warns that the reverse is needed for those who are at a later stage of their careers. If we do it right all generations and social security can benefit.
Determine during social dialogue the function maturity of each job and stop all linear increase as soon as the threshold is reached. From that moment the wage evolution is no longer a function of automatisms, but of definable performance criteria. Install a transitional phase of roughly four years to let everyone settle into the new system. Tie that to a broader strategy that tackles working longer with more commitment from government and employer, for effective career maintenance. This will make the “win-win” for all generations actually tangible. The link between wages and work becomes stronger. The younger will be paid more to merit and the elder will not necessarily be more expensive. Wage policy will better translate and support the operation of the company. Longer careers will be supported by a flattening wage curve in the final stage, thus improving the financing of social security. Everybody wins, but a deadline is needed to pull the social dialogue away from the force of habit. It all starts with a strong political deadline.
