The unbalanced imbalance in the financial treatment of civil servants and employees

It is hard to believe how deep the gap between civil servants and collective bargaining employees in the public sector and in the private sector is now diverging. While civil service is in many cases at a young age regularly and early on inflation compensation, employees and workers often only benefit from delayed or insufficient adjustments. the systemof the so-called special payments, which are usually only half as high or are only paid out late in the year, ensures that the real purchasing power of the collective bargaining employees suffers considerably more in most cases. The consequences are serious because these differences add up to double-digit percentage ranges over the years, if you make all the special payments,Salary adjustments and inflation increases combined. The civil service, on the other hand, pushes itself into a comfortable niche through these advantages, in which purchasing power hardly suffers, while the majority of employees are becoming increasingly poor, despite hard work and high stress.

Cantillon effect in all its glory

The so-called cantillon effect, a distortion of the distribution effects through money creation, is shown here in its most blatant form. While civil service receives regular and early inflation compensation, you benefit particularly strongly from the advantageous conditions for loans and special payments. Banks often grant officials significantly lower interest rates because they are safeDebtors apply, and that in a large number of financial products, from home loans to car financing. Over time, these favorable conditions add up to considerable, often in the single-digit percentage range, interest advantages that are reflected in thousands of euros if real estate financing is used. This is a huge advantage, especially in times of high inflation, sincereflects the long-term interest savings in high sums, which significantly expand the financial leeway of the civil service. While the masses have to live with normal market conditions, civil servants benefit from a privileged position that hardly any other professional group enjoys to this extent and which further deepens social inequality.

Stable supply systems as a privilege

Another point that cements inequality is the secure supply and the generous pension entitlements of the civil service. This ensures a predictable pension scheme, which in most cases is much more stable than those of those who are often dependent on the statutory pension. the cumulative pension effects, which are caused by the special pension schemecan be reflected in tens of thousands of euros if you include the lost risk premiums, which are common in the private sector. This means that civil servants usually enjoy significantly higher purchasing power when they retire, while the majority of employees are struggling with insecurities and insufficient provision. These differences are not only socially unjust, butalso a clear form of distribution policy, which undermines social cohesion.

Time advantages for collective bargaining increases

The state is particularly generous here when it comes to taking over collective bargaining increases. The time gap that exists when adjusting the references is hard to believe. While the collective bargaining employees often have to wait months or even years for an increase, the adjustment is often much faster and complete for civil servants. this timeThe lead can be reflected in a medium to high three-digit euro amount within a year. It is a clear form of preference, which is clearly visible not only in the amount of the covers, but also in planning security. For those affected, this means that they are able to better cover their living expenses, while the broad mass of workershave to come to terms with the uncertainty and the delays.

Substantial and non-monetary benefits as hidden inequality

In addition to the monetary advantages, the civil servants offer a large number of benefits in kind that are hardly taken into account in the public discussion. Discounted housing or moving aids, subsidies in the event of illness, free or subsidized further training and other benefits in kind significantly reduce private expenses. For a family who cares about these servicesin a year, these advantages easily add up to several thousand euros, which means a significant relief. These non-monetary benefits are further proof that civil service lives in a privileged position that hardly any other professional group can enjoy to this extent. They are the hidden capital that the socialinequalities further cemented.

Real income under inflation protection

A crucial point is the stability of real income, which is guaranteed by automatic or rapid adjustment mechanisms to inflation indices. While civil servants usually receive inflation-based salary, collective bargaining employees are often forced to wait for delayed or insufficient adjustments. This means that the real purchasing power of officials in theremains much more stable than other groups. This protection against loss of purchasing power has a long-term effect in several tens of thousands of euros, which secure or even increase the standard of living, while the others are increasingly losing value. This inequality in inflation hedging is a clear example of the systematic preference of a privileged class, whichsocial division further deepened.

The interplay of the advantages increases inequality

When all these factors come together, a system emerges that, in its entirety, further exacerbates social inequality. Early inflation compensation, cheaper loans, stable pension entitlements, quick collective bargaining adjustments, material and non-monetary benefits and the stability of real incomes result in an enormous advantage for the civil service. Depending onCV and individual situation can add up to this advantage to tens of thousands of euros. This is no small thing, but a systematic, socially desired shift in distribution that makes equal opportunities difficult and deepens social division. It is high time to openly address these inequalities, criticize them and look for ways tofairer to ensure the treatment of all public service employees and beyond. The company may no longer accept that a privileged class gains such a, in total, enormous advantage through government and social measures, while the broad mass of employees with the consequences of inflation, higher lending rates and more uncertainretirement provision fights.