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Wage indexation has been dropped by European countries long ago, except, in some of them, for the minimum wage. And even in that case, in most countries, the adjustment is not automatic. See this study from the European Industrial Relations Observatory:

Minimum wages in Europe Scroll down to find the chapter about adjustment.

"Dieu se rit des hommes qui se plaignent des conséquences alors qu'ils en chérissent les causes" Jacques-Bénigne Bossuet

by Melanchthon on Tue Jan 6th, 2009 at 07:44:09 PM EST
[ Parent ]
Funny that...

We have neither a minimum wage nor wage indexing. Instead we have collective bargaining by fair and responsible employers and fair and responsible labour unions.

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid (arvid.hallen at gmail.com) on Tue Jan 6th, 2009 at 11:45:57 PM EST
[ Parent ]
Fair and responsible and strong labour unions.

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Wed Jan 7th, 2009 at 03:58:41 PM EST
[ Parent ]
Certainly. People often joke and say that the (all powerful * ominous music *) soc dem party is actually just the political wing of the biggest labour union... ;)

And well, union membership is something like 75-85 %. I mean, I'm about as hard right as you can be in Sweden, and even I'm a labour union member!

(not a member of the big soc dem labour union though)

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid (arvid.hallen at gmail.com) on Thu Jan 8th, 2009 at 07:36:11 AM EST
[ Parent ]

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