EXECUTIVES ARE ALSO AFFECTED BY THE ENERGY CRISIS

Putin invaded Ukraine in late February. The human suffering is enormous. But the consequences for our wallets are not insignificant either.Energy prices are skyrocketing, the products in our shopping carts have become significantly more expensive, and inflation has not been higher in more than 40 years. Fortunately, our wages are automatically indexed. Yet, many employees and their families are struggling, even those with ‘decent’ wages.

We sat down to talk with Valerie Scherpereel, executive and representative at Belfius Bank. “It is wrong to assume that executives in well-paying sectors never suffer from a crisis.”

You work in the banking sector, with a permanent contract and a bi-monthly wage indexation. Yet you absolutely wanted to discuss this topic.

Scherpereel: “Indeed, employees in our sector are paid decent to good wages. But generalisation is rarely a good thing. It is wrong to think that executives in well-paying sectors, such as ours, never suffer from a crisis. Some of our colleagues are also in a precarious situation. Think, for instance, of single parents. They may have a decent basic income, yet they are affected more by rising prices than families receiving two pay checks every month.”

Have you changed your spending habits?

Scherpereel: “I myself am a single mother of two children. My eldest daughter started going to university in September, and that entails additional costs. We therefore make a much more conscious decision on where we do our weekly shopping. And fun shopping has become functional shopping. We will also have to reconsider our holiday plans.”

Do you try to save money on certain things?

Scherpereel: “We work in a good sector, with a great basic income and many fringe benefits. Yet, we have also waited a little longer before turning on the heating. Fortunately, I live in a modest terraced house. It is fairly new and well insulated, so our monthly energy bill has not yet become too expensive. Single parents in other sectors are struggling much more. But I do want to emphasise that it is too easy to discuss the capping of the wage indexation for high wages, as is the case in AXA Insurances, because even in the case of higher wages, certain groups are more affected by such measures.”

Does this situation have an impact on your children and those around you?

Scherpereel: “My children are spending their money much more consciously than before. I found an inexpensive dorm, so she can still study comfortably at university. She is very grateful for that. I give her a weekly allowance, and she spends that money very consciously. She works at weekends, because she wants to get a good start and be financially independent. My youngest son is also interested in having a student job when he’s older.”

Are there any people around you who are worried about their financial situation?

Scherpereel: “Of course. There are many people who are worse off, who can’t even think about renting a dorm for their children. And the rising energy costs have a considerable impact on everyone’s budget.”

What do you think about the demand to stop indexing wages by percentage or even capping them in favour of people with lower wages?

Scherpereel: “I am genuinely concerned about preserving purchasing power for people with lower wages. At first, it seems logical to stop indexing wages by percentage or even cap them in certain cases. But it doesn’t make sense, because employees with high wages can also end up in precarious situations. Often, only their wages are considered, and not their expenses. Energy prices will not be capped, and rents will also be annually indexed. If the index is adjusted, employees living on one pay check would also become victims, even if they have a higher wage. Messing with the index is therefore not the right solution.”

The government has taken some supporting measures. What do these mean to you?

Scherpereel: “The supporting measures, such as the basic package for electricity and gas, are also more than welcome to me. Yet, there are groups in our society which are in much greater need of additional measures. A price cap for gas and electricity is crucial to some, as is opening up the social energy rates. And please, let’s stop looking at incomes only to determine who is entitled to those measures, and also take into account the family situation.”