European Central Bank (ECB) President Christine Lagarde has dismissed calls by staff to link pay rises to inflation rates, which have hit a record high in the eurozone and far exceed the minimum wage increase granted for 2022.

In a May 5 email to employees, cited by Bloomberg news agency Monday, Lagarde said she understood some were "disappointed" with this year's pay rise but insisted future adjustments would be "reasonable." would have to be.

When the ECB union called for wage increases to be linked to consumer price increases, they replied: "Indexing wages to inflation is undesirable and not intended." Beyond its own practices, the ECB is one of the most vehement opponents indexation - a policy that was common in the past and is still applied in some countries.

The October Governing Council meeting was reminded that in the 1970s wage indexation sustained both stagnation and inflation, according to a report on the deliberations.

Corresponding reluctance also prevails elsewhere: The governor of the Bank of England, Andrew Bailey, has declared that he will not accept a salary increase this year.

Most of his employees only get a 1.5 percent increase.

In Brazil, central bank employees are on strike over their salaries.

understanding of inflation concerns

Lagarde was speaking after a meeting between management and staff representatives last week to discuss a 1.48 percent wage increase that went into effect in January.

"I understand that this number has disappointed many of you because of high inflation," she wrote in the email.

"We understand that inflation is a concern for many of you, as it is for many people outside the ECB." Eurozone prices rose 7.5 percent in April, compared to the ECB's medium-term target of 2 Percent.

The ECB staff union - the International and European Public Services Organization - has campaigned to overhaul the way pay increases are calculated and proposes linking them to inflation in Germany or the eurozone.

The payment is currently calculated according to a formula that is based on the salary development at the national central banks and other European institutions and not on the location where the employees work.

The system will last until 2023. Negotiations on possible changes should start later this year, according to Lagarde.

Any changes would have to be approved by the Governing Council, which is made up of the heads of the national central banks.

It could be an incentive for them to match the conditions with those of their own institutions hiring in the same labor market.

"A stable, reliable methodology should not be abandoned, but appropriate adjustments can and should be discussed," said Lagarde.