Bonum Certa Men Certa

Inside the EPO During Corona: The EPO's Fat Cash Cow is Decreasing Salaries of Staff During a Public Crisis

No dialogues needed, apparently. Just make ordinary staff pay, as usual.

Cow dialogues



Summary: "We demand that the salaries of the EPO should respect the principle of parallelism based on the cost of living in each of the Places of Employment," the staff union of the EPO (SUEPO) writes, "which is a real salary adjustment method – as used throughout international organisations - and not a Salary Erosion Procedure which we will be getting soon."

THE working conditions of EPO staff, not to mention their salaries, have been under constant attacks by the Benoît Battistelli regime; this isn't what examiners signed up for and typically relocated the whole family to another country for. António Campinos is just more of the same; Mr. Fanta. Different branding, same abuses. Even worse abuses.



"Did the EPO give/extend any courtesy/respect to actual facts over the past decade?"SUEPO, the staff union of the Office, published the following back in April, noting that "presenting our previous Salary Adjustment Procedure as an automatic increase is an extremely single-minded view, devoid of any facts."

Did the EPO give/extend any courtesy/respect to actual facts over the past decade? Or just lies and buzzwords like "Hey Hi" (AI), along with euphemisms such as "social dialogue"?

Here's the publication from SUEPO:

24 April 2020 su20020cp

Salary adjustment method: which inflation is relevant?



From the emails we receive, we conclude that there are several open questions relating to the inflation in the EU, Eurozone or national level with respect to the cost of living in our Places of Employment. This publication tries to answer these questions.

It must be added that, whether or not you will like the result, the President is fully aware of the consequences and it was his deliberate choice.

Introduction

In a nutshell, following from the Mercer Financial Study, the President neglected some € 9 billion (sic.) of EPO assets in a financial study to find a “funding gap” of € 3.8 billion – on top of which another € 2 Billion ‘buffer’ were magically added, which should now be filled with a cut of about € 2.7 billion from our salaries over the next 20 years1. This is equivalent to several hundred thousand Euros in loss of purchasing power for each of us. The tool for implementing this cut is the new salary erosion method as proposed by management. In this new salary erosion method, a number of safeguards that existed in the previous salary adjustment method are deleted, e.g. to account for unexpected inflation or double counting. It also removes the retroactive correction from July to December. Finally, the President’s method will apply an overall cap based on the inflation of the Eurozone. This last step is the core element that will gradually erode our purchasing power by hundreds of thousands of Euros for each of us. Everyone can verify to themselves using the salary simulator2 created for that.

The inflation: an important element for the cap



The President claims that the impact of the cap in the salary erosion procedure is about € 2 billion – but this is actually misleading. Indeed the € 2 billion he is mentioning3 is based on the EU inflation4 (as used in the financial study), but the method as now proposed actually uses the Eurozone inflation. This little detail is worth billions of Euros: the annual EU-HICP (EU-inflation) is currently at 1.6% while the Eurozone inflation is at 1.2%5. The cap according to the salary adjustment method, which is Eurozone inflation +0.2% (plus 0.2%), corresponds to an EU-inflation – 0.2% (minus 0.2%). When looking at past data, the EU-inflation is consistently above the Eurozone inflation, which only reflects the fact that the Eurozone contains mainly stable, old economies while

______ 1 “What does Campinos’ SAP do?” 2 https://suepo.org/salarysimulator 3 “Salary Adjustment Method” intranet publication dated 9.4.2020 4 Financial Study Phase II, CA/83/19, page 123 5 https://ec.europa.eu/eurostat/web/hicp/data/database




the EU contains also countries which are attributed to the European Emerging Markets which have a higher economic growth which comes along with higher inflation. Changing the inflation basis from EU-HICP to Eurozone HICP has as a consequence that the impact of the cap will be much closer to € 3 billion than to € 2 billion6. Still, the President continues to communicate € 2 billion on the basis of an EU inflation +0.2%, thus entirely misleading staff.

By applying the salary erosion method proposed by the President to the last six years (2014-2019 – which were prosperous years), the erosion of the salary scales would be around 7% or the equivalent of some 3 steps, lagging the evolution of the cost of living in our Places of Employment by around 4 %. Having said that, neither the EU-HICP nor Eurozone-HICP are in any way representative for the evolution of the cost of living in any of the Places of Employments. Over the last 6 years the cost of living in Munich and The Hague as calculated by Eurostat increased around 5% faster than EU-HICP, and almost 6% faster than Eurozone-HICP.

Why do we need the correct cost of living (inflation) in the Places of Employment?

One of the important elements of remuneration of international civil servants is the so-called parallelism. The parallelism stipulates that the salary evolution of international civil servants should develop in parallel with the national civil servants. Since the member states have vastly different inflation, simply taking the average of the nominal salaries will lead to arbitrary results. Therefore, the average of the real salary development (thus the nominal reduced by the inflation) of the national civil servants is calculated. This average is the so-called specific indicator (SI). The SI is frequently negative in economic crisis, meaning that the national civil servants receive a salary adjustment below inflation. We expect it to be negative this year, too. Since the SI is net of inflation, the inflation or cost of living must be added again. It is evident that the inflation is thus only a base line from where the SI is added to reflect an adjustment of our salaries in parallel with the salaries of the national civil servants. It is, however, also evident, that for the method to yield correct results, an inflation must be used, which is relevant for the real life of the employee in a particular duty station. For our salary adjustment, the SI must be added to the evolution of the cost of living in the respective place of employment.

What is the cost of living in the Places of Employment?

Everybody who lives in one of our Places of Employment (PoEs), some of the most expensive cities in Europe, can confirm that the cost of living there has nothing to do with the average cost of living (inflation) in that country. This is the very nature of an average. Unfortunately, the inflation in the PoEs, for example, Munich is not available directly. However, there is solid data prepared by Eurostat to calculate it indirectly7. What we do have is the evolution of the purchasing power of Munich and Brussels. This is calculated by Eurostat for these cities. It yields the purchasing power parity between these places (PPMM/B), which is equivalent to the inflation in Munich divided by the inflation in Brussels8.

______ 6 Financial Study Phase II, CA/83/19, page 9 7 To show the mechanism, we use Munich as an example. The same is done with The Hague and Vienna. 8 https://en.wikipedia.org/wiki/Purchasing_power_parity




Thus, when multiplying this PPPM/B with the inflation in Brussels one obtains the inflation in Munich9. Therefore, the best available proxy for the cost of living in Munich is10:

cost of living in Munich = HICPBE * PPPM/B


When adding the Specific Indicator (SI) the adjustment in Munich is:

adjustment in Munich = HICPBE * PPPM/B * SI


The Munich local inflation (HICPBE * PPPM/B) increased over the last 6 years close to 6% faster than the EU-inflation (EU-HICP). With respect to the German or Eurozone inflation, the difference is even higher.

What does the use of another inflation do?

From the above it is apparent that we can calculate the best available figure for the cost of living in Munich, The Hague and Vienna. Globally capping the adjustment as proposed by the President based on an inflation almost entirely unrelated with the reality of the evolution of the cost of living at the PoEs will almost always lead to a loss of purchasing power for the people living there. Only in and after severe crisis it will have no impact because in such situations the member states normally reduce the salaries of their national civil servants. In line with the principle of parallelism we will follow these cuts, too.

Conclusion

The President and his management state that we were used to an automatic salary increase, however, the salary adjustment method is there to adjust the salaries in line with the salary development of national civil servants. It may be an increase (i.e. above inflation) if the national civil servants receive an increase (above inflation), or conversely a decrease (i.e. below inflation) if the national civil servants receive a decrease. The latter happened particularly in and after economic crisis11. Presenting this as an automatic increase is an extremely single-minded view, devoid of any facts.

We demand that the salaries of the EPO should respect the principle of parallelism based on the cost of living in each of the Places of Employment, which is a real salary adjustment method – as used throughout international organisations.

The ability of the EPO to recruit among the most skilled candidates is at stake: on top of the 5-year contracts, the worst career system in International Organisations, we now get the worst salary adjustment system. Recruitment was already challenging – soon the EPO will be entirely unable to hire the best engineers of Europe.

SUEPO CENTRAL

______ 9 For example: If the inflation in Munich and Brussels were the same, the PPPM/B would not change and it would remain at 100%. If on the other hand, the Inflation in Munich is lower than in Brussels, this would mean that 1 Euro could buy more in Munich than in Brussels. The PPPM/B would immediately compensate for this “imbalance”. It would decrease below 100% to compensate the diverging evolution. 10 The current SAP, uses the HICP of Belgium as the inflation in Brussels. Some years ago, it was still the Brussels International Index. The latter would probably better reflect the cost of living of international civil servants in Brussels. But since Brussels is the heavy weight in the Belgian economy, using the HICP of Belgium is not too bad. Contrary to that, if we took the German HICP as the local inflation for Munich, the deviation would be significant. 11“What does Campinos’ SAP do?”


Discussion about salary increases and decreases may seem boring on the surface, but it's important to remember that the EPO sits on a big pile of cash it's not even supposed to have; it could easily (fiscally) afford to just let the staff rest at home (like a paid leave) until the worst of the COVID-19 crisis is over. At the moment the EPO loses skilled staff as the quality of the work nosedives, reducing if not outright discrediting/nullifying the justification for this whole system. Examiners who cannot properly decide on patents can do more harm than good, no matter if it's due to lack of time or lack of relevant skills.

Recent Techrights' Posts

While GAFAM/Microsoft Disguise Financial Crisis as "Investment in AI" the Slop Giants Make Up a Narrative of Wilful Slowdown
A BS artist is good at the art of BS when the artist's failures or weaknesses get twisted as moral or professional leadership
It Has Cost $215,000 in Legal Costs to Sue IBM for Wrongful Termination
IBM typically settles out of court and demands secrecy (to avoid anyone else benefiting from the very expensive outcome)
 
"Wail" by Alexandre Oliva
This work is licensed under the Creative Commons License BY-SA (Attribution ShareAlike) 4.0 International
This Morning The Register MS Published a Page With "AI" 83 Times in it. The Register MS Got Paid to Do This.
The Register MS is not a serious publisher and a lot of the stuff about "AI" on the Web isn't journalism but paid-for SPAM
SLAPP Censorship - Part 184 Out of 200: A Tiny Law Firm That Knows Nothing But Microsoft (But Merely Pretends to Understand "IT")
They've managed to trick some mainstream media into thinking they're "Tech" experts or "Social [Control] Media" gurus; nothing could be further from the truth
Links 15/09/2026: Sweden’s Far Right Perishing and "Iceland Just Got Played"
Links for the day
It's Not About How Developers Vote
This isn't about politics, it's about users being in control of their own computers and computing
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, September 14, 2026
IRC logs for Monday, September 14, 2026
Gemini Links 15/09/2026: Poetry, Enshittification of Ebay, and Mecha System
Links for the day
LG Lies to Cover Up Lies About Its Spying TVs (It Records and Transmits Conversations in Rooms)
This is what a lot of "modern" technology is like
Oracle's Debt Continues to Soar (Increase of 60 Billion Dollars in 15 Months, Not Counting the Secret Debt, With Off-balance-sheet Debt Having "Grown Roughly Thirtyfold in Four Years")
Oracle debt continues to grow
Apple's iOS and macOS Measured as Bigger Than Windows in the US, Linux-Based OSes at Almost 30%
Expect the silent layoffs at Microsoft to continue at a rapid pace
Oracle, Like Microsoft, Drowns in Debt and Discards Tens of Thousands of Staff (Microsoft Does the Same More Discreetly)
The main difference between Microsoft and Oracle is that the latter is honest about what's going on
Gemini Links 14/09/2026: First Android Phone, Leaving Sony, and Rant About Gemini-to-HTTP Proxy Providers
Links for the day
Links 14/09/2026: "Scam Altman Now Trying to Gain Control of Electric Grid" and Sweden Moving to the Right
Links for the day
Vista 11 Flunked
Microsoft cannot start a "Vista 12" campaign as it would only make matters worse
Microsoft Urgently Needs Distraction: There's No "Next XBox", But There's a New Boot Screen (Like 'Dark Mode', a Feature That Can be Implemented in Mere Minutes/Hours)
Anything to distract from XBox fiasco
The PIPs or 'Voluntary Termination Offers' Help IBM Fake Its Situation
"IBM is not a tech company"
IBM Flying Away to Sweatshops (So Will Red Hat)
Even on Sunday people post about 'leaving' IBM
RFID Ambitions Already Established by Widespread Skinnerbox Adoption
A society that cannot maintain privacy for those who deserve it will not manage to assure dignity of citizens
SLAPP Censorship - Part 183 Out of 200: What Actually Happened Two Months Ago (Based on People Who Attended)
It's dangerous to assert what happened in a hearing you did not attend (there was no video stream or recording, either)
Phil Harvey, an Editor-in-Chief in a B2B Site, Explains Why ChannelFutures (Connected to TechTarget) and Other Sites That Used to Cover Linux Deleted Many Articles
Every old article in channelfutures is gone!
Software Freedom Day 2026 is 5 Days From Now, Fresh Reminder to Boycott Proprietary Software
Let this be a timely reminder of why people should avoid proprietary software
Links 14/09/2026: Slop Hardly Used for Actual Work (Chatbots Are for Lonely People), Slop Bots (Scrapers, Plagiarism) "Are Thirsty for Power"
Links for the day
Gemini Links 14/09/2026: Trip, Hiding, and OCR
Links for the day
IBM PIPs Are Layoffs (RAs Come Later Even If You Satisfy the "Performance" and "Plan")
Notice how "the media" almost never mentions silent layoffs, as if just because they're silent, there's nothing to investigate, nothing to see there
Slop Companies Engage in Plagiarising the Web, Now They Pay People to Contaminate the Web With Their Lies
Remember that the lawfare against us is funded by slop salaries!
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, September 13, 2026
IRC logs for Sunday, September 13, 2026
Microsoft is Laying Off All Year Long (It's Just Keeping Quiet About It)
The issue here is also the media. It's complicit.
MElon's Twitter Takeover Was Meant to Amplify People Like Himself or David Heinemeier Hansson (Slop Pyramid Schemes and Bigotry)
Social control media is not neutral
Microsoft Lunduke of 'Linux Sucks' (and Microsoft Corp.) Tries to Replace GNU/Linux With Toxic Discussions About Toxic Politics
Poisoning the well people drink from
General Assembly Covers EPO Strikes on Thursday, September 17th (2026)
The EPO's staff representation at The Hague has asked people to join an upcoming online session about industrial actions
Links 13/09/2026: Republican Campaign Aide Uses Nazi Photo and Convicted Felon is Wielding Power to Stifle Speech
Links for the day
Gemini Links 13/09/2026: Never Settling, Plain Text Digital Life, and Newsgroups
Links for the day
SLAPP Censorship - Part 182 Out of 200: UK Dockets With Machine-Generated Applications to the Court (From American Slop Companies)
Earlier this year Garrett was using machine-generated output as legal papers and submissions
Efforts to Cancel Matt Mullenweg Have Made Us More Sympathetic Towards Mullenweg and More Sceptical of the People Who Run Automattic (Named After Mullenweg)
Mullenweg, unlike Automattic, is not "in it for the money"
Boosters of Omarchy Are No 'Underdogs'
There are many Arch derivatives that do not rely on "viral" marketing in MElon's child porn-pushing social control media and are instead relying on real development, not slop
PIPs Are a Setup: They Set Workers Up to Fail While Working Their Arse Off Before Getting Kicked (Out) in the Arse
Malicious and exploitative
SLAPP Censorship - Part 181 Out of 200: This is Really More Like Brett Wilson LLP v Schestowitz (Using Money From American Slop Companies, Plagiarism Pushers)
We approach the parts where we explain that the Application to the Court with Garrett's name on it was instead complaining about fair criticism of the combative law firm (irrelevant to any injunctions) as if it was impermissible to explain what it had done - and still does - to my wife and I
It Sometimes Feels Like Slop Companies Are Committing Online/Digital Crimes
"GPT" out of control
Gemini Links 13/09/2026: Why Omarchy is "Plain Disgusting" and "AI Slop" and Why "Plain Text To Do List" Rocks
Links for the day
Links 13/09/2026: Scam Altman Admits Issues (Financial), Rival Says Stop Slop (Plagiarism)
Links for the day
Windows Down to New Lows as Switzerland's Federal Government Abandons Microsoft (Where Feasible for Now)
That's how it starts...
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, September 12, 2026
IRC logs for Saturday, September 12, 2026