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

Wayland is About Less Choice, About Removing Choices, It's Not About Freedom
IBM insists that it cares about "diversity"
Keeping Things Accessible
Gemini Protocol seems to be growing
Not Much Better Than LLM Slop: Linux Foundation-Funded 'News' Site Writes Linux Foundation 'News', Composed by Linux Foundation Operative, Quoting Linux Foundation Staff
...they get paid (sponsored) to produce this spam. Then they call it "journalism".
Annual Southern California Linux Expo (SCALE 22x) 'Bought' by Microsoft and Microsoft Exceeded Sponsorship Limits by Giving Double the Maximum Permitted Amount
When people get bribed they tend to forget how to utter a simple word: "No."
 
Links 27/06/2025: International Tensions and Contentions Over Plagiarism Perfumed as "Hey Hi" and "Fair Use"
Links for the day
Gemini Links 27/06/2025: Poetry and Censorship by Social Control Media Centralisation
Links for the day
Links 27/06/2025: Journalists Under Fire and Microsoft Has Serious Slop Problems
Links for the day
X is Dying, But Not XServer/X11. Twitter X.com is Dying.
People or businesses or government officials (and departments) that still rely on Social Control Media are playing Russian Roulette with their future online
Escaping Colonialism (or 'Hegemony') Requires Abandoning GAFAM, Microsoft in Particular
Europe is already in the process of abandoning Microsoft
Microsoft Will Shut Down More Studios This Week, Its Media Operatives Will Tell Lies About the Magnitude of the Shutdowns and Layoffs (They Always Do)
Many people who get counted as "workforce" are "temps" or similar
What Linux Foundation 'Research' is: Paid Marketing
What is Linux Foundation 'Research'?
No, IBM Does Not Care About People With Disabilities
"Aktion T4" did not seem to bother Watson
Microsoft's Financial Problems Mean Shutdowns, Not Just Mass Layoffs
If the original rumour is true, then expect almost 30,000 Microsoft workers to be let go this year
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, June 26, 2025
IRC logs for Thursday, June 26, 2025
The Netherlands: GNU/Linux Measured at All-Time High
Are any Dutch cities going to announce dumping Microsoft?
Gemini Links 27/06/2025: "Interstitial Existence" and Autocorrect
Links for the day
EPO Examiners Point Out to the Heads of Delegations in the Administrative Council of the EPO That the "AI Policy" of the Office is Illegal
"the Central Staff Committee (CSC) asks the Administrative Council to exert its supervisory role and instruct EPO management to enter into genuine dialogue with the staff representation on the AI Policy, to revise the “Leverage AI” target of 90% AI-automated classification in the SP2028 and to put in place the measures supported by staff in the resolution."
Technical People Need Technical Lawyers
Technical Litigants in Person (LIPs) have many real and concrete advantages
10,000+ Articles in About 20 Months (and How We Got Here)
More bloat does not beget efficiency and "bells and whistles" tend to have a hidden cost
French Cities Dumping Microsoft Because They Recognise Software Freedom, Open Standards, GNU/Linux Autonomy
We hope that more French cities - maybe Paris - will follow Lyon.
Links 26/06/2025: Illegal Kangaroo Court (UPC) Failing Scandinavia, K-Pop Agencies Abuse People
Links for the day
Gemini Links 26/06/2025: AuraGem Twitch Proxy is Back and UI Sluggishness
Links for the day
LWN is a Voice of GAFAM (Through Linux Foundation, Their Front Group or Occupying Force Inside Linux)
remember who the chief editor works for and who sponsors many of the articles
Links 26/06/2025: Noise Pollution Considered High in Europe, Mass Layoffs Next Week in Microsoft Confirmed, Very Large in Scale and Scope
Links for the day
The 'Case' of the Serial Strangler From Microsoft is a Lot of Copypasta (Maybe Also LLM Slop) From the Matthew Garrett 'Case'
5RB deserves to know and the matter shall be properly reported in due course (when the time is right)
EPO Squeezing the Staff - Part II - Office Breaks Rules, Ignores Courts, Defies Justice
False promises everywhere
No, I Don't Want Your Latest XYZ, ThankYouVeryMuch...
Wayland is finally ready?
China Keeps Breaking Into Microsoft Systems, So for True Sovereignty, Nations Wary of China Need to Dump Microsoft
Looking at data from Taiwan (not China) and Maharlika (not Philippines, the king is dead and Spain is out), there are encouraging signs
Linux Journal Wants Ads on Its LLM Slop or Ads as 'Articles'
it's basically another BetaNews
How to Kill a Monopoly
in 10 simple steps
IBM - Like Microsoft - is a Dying Company and Perishing Brand ("AI" is a Lie and Decoy)
"Arvind is cutting costs (layoffs, PIPs, forced RTO, etc...) like crazy. IBM offices are closing all over the place in the US."
"Code of Conduct" Invoked When Fedora and Red Hat Users (Since the 1990s) Don't Want to Use Wayland
That is IBM "DEI"
Mozambique: GNU/Linux Rose From 0.5% Last Year to 3% This Year
what (or how) statCounter is measuring
Microsoft Layoffs Next Week: About 10% to be Laid Off in Microsoft Gaming (2 Days Before Independence Day), About 20%+ of XBox Staff
Microsoft is rapidly collapsing
Next Month Marks 11 Years Since Our In-Depth EPO Coverage
The same is happening to Microsoft right now
Free Software Foundation (FSF) Campaigns Against Vista 11, Adds 4 New Associate Members Per Day
If more people understood the underlying principles, more of them would flock to Free software overnight
Canonical Seems to Have Culled Some Sources of LLM Slop From Planet Ubuntu
It's like "junk food", it's not information
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, June 25, 2025
IRC logs for Wednesday, June 25, 2025
On "Weak Claims"
For the record, they sent me unjustified threats, repeatedly tried injunctions (censorship)
EPO Squeezing the Staff - Part I - Burnout and Family Health
more exceptional circumstances
This Month's Mail (MX) Server Survey Shows Microsoft at 0.20% "Market Share"
We need to remind people that desktops and laptops decline (in proportion to other client devices) and at the "back end" GNU/Linux is already dominant and has long been dominant
Links 26/06/2025: Filespooler Guide and Learning to Code
Links for the day
Why Techrights Cannot be Vilified (and Instead It Gets SLAPPed Repeatedly by Microsoft People)
Attack dogs are all "bark"; because they have no actual "bite"
Austrian GNU/Linux Usage Up to About 5% as More of Europe Abandons Microsoft
Since inauguration day the Austrian people have adopted more and more of GNU/Linux
Why the "Wayland People" and "Rust People" Will Lose Hearts and Minds (Same Reasons)
Wayland pushers are fast becoming like "Rust People"
5,600 Pages/Articles Per Year
So far this year we've kept all the promises
BetaNews Beginning to Show What Its True Goals Are
The 'new' BetaNews won't be about journalism. It's trying to sell things.
Microsoft Has Lost "The War"
We'll soon see the 9th or 10th wave of Microsoft layoffs in 2025 alone
Slopwatch: A Wreck and a Dreck, "Flooding the Zone With Dreck" or Flooding the Web With Junk
"Slopwatch" continues today because we have many new examples
Links 25/06/2025: Thwarting More Software Patents, Overlap Grows Between EPO Corruption and Illegal Kangaroo Patent Courts in EU
Links for the day
Links 25/06/2025: Elon Musk’s Lawyers Caught Lying, WhatsApp Faces More Bans
Links for the day
Wayland Pushers Lose the Argument, Use LLM Slop and Chatbots to Make Up Arguments for IBM
Another new low and low blow
Brian Fagioli Created Another Slopfarm Targeting "Linux" After BetaNews Became a Slopfarm of Phantom Accounts and Pseudonyms
Mr. Fagioli even had slop about a dead Torvalds (hypothetical) as clickbait
Wayland is Perfect, Nobody Can Escape Its Perfection! (Or Not)
Do not form on opinion on Wayland based on politics
What is "MATA"?
Think of it as GAFAM or "Meta"
Moral Duty for "Linux Sites" to Speak Out Against LLM Slop
My wife has long complained about "Linux bloggers" keeping quiet and thus passive about a growing problem: slop
In Recent Hours Google News Promoted at Least 3 Slopfarms That Relayed Linux Foundation Propaganda Made by Bots or LLM "Bullshit Generators" (as Dr. Stallman Dubbed Them)
Google is circling down the drain and Google News too is hopeless
Linux Journal is a Slopfarm, It's Experimenting With LLM 'Authors'
Is Slashdot next?
WebProNews is a Slopfarm
Please avoid linking to WebProNews
Microsoft LinkedIn is Dying and Many More Layoffs Are on the Way
LinkedIn is just a failed acquisition of Microsoft. It causes losses and debt.
Gemini Links 25/06/2025: Combinatorial Music and Self Hosting
Links for the day
Richard Stallman Coming Back to Europe This Autumn to Give More Talks
His last talk in Europe attracted about 400-450 people
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, June 24, 2025
IRC logs for Tuesday, June 24, 2025
Social Control Media, Technology & Catholicism: Synod on Synodality review and feedback
Reprinted with permission from Daniel Pocock
How Many More Women Will Managers at Microsoft Strangle and Tell to Kill Themselves (or Try to Kill)?
The world needs to know what happened
The New BetaNews: 7 New 'Articles', All of Them LLM Slop
BetaNews is basically defunct. Nobody writes there anymore.
Another "Told You So!": XBox Mass Layoffs at Microsoft (Many Recent Reports Were Chaff and Spin), Many Other Divisions Affected
With mass layoffs at Microsoft the world would be much better