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Energy Crisis and Inflation: Impacts on Workers and Citizens/ Consequences for Unions
April 8 2022 | 09:30 – 11.00 AM | Online via Zoom

As war in Ukraine takes a terrible humanitarian toll, the world is facing far-reaching and unpredictable political, economic, social and geopolitical consequences.

For European citizens and workers, inflation is becoming an increasing threat. Already before war broke out in Ukraine, prices were getting higher in the EU across many commodities and outpaced wage increases in many places. Since then, the Russian invasion of the country has caused further soaring prices especially for energy. This concerns above all gas and oil for heating, fuel for transportation, and electricity.

Amid the difficult Covid recovery, citizens, workers, and consumers face increasing challenges to their wealth and social standards and see their financial security and purchasing power at stake. Especially the low and even the middle-income households are exposed to imminent poverty risks if wages or other support mechanisms cannot compensate price increases.

Against this background, CESI wants to shed light on questions such as:

• What are the concrete current impacts of inflation on workers, and what future developments can be expected?
• Inflation for which commodities other than in the energy sector makes it hard for them to make financial ends meet?
• What can the EU and the Member States do to shield middle- and lower income households from rising prices?
• What are the demands and responses of trade unions and social partners? What is the role of a trade union confederation like CESI?
• In particular, how can wages be adjusted to inflation and losses in purchasing powers be avoided while at the same time pre-empting a vicious cycle of wage-price spirals?

The event aims to give to CESI’s members the opportunity to exchange among themselves and with EU policymakers about appropriate responses.

Further background information:

• In October 2021, before the war in Ukraine had started, the European Commission had already responded to rising energy prices via a Communication which contained a (non-binding) toolbox with recommendations for Member States on how to lower the burden of high energy prices for citizens and consumers – for instance through income support to households, state aid for companies, and tax reductions for consumers.
• The war accelerated the need for more radical interventions, as the exploding energy prices have been leading to even higher inflation. To reduce Europe’s dependency from Russian fossil fuels and to ensure energy supply at reasonable prices, the Commission has recently proposed a plan which outlines, among others, a series of measures to respond to rising energy prices, followed by a legislative proposal for a regulation on gas storage and a communication on security of supply and affordable energy prices.
• Next to energy prices, the war in Ukraine has also increased prices for food and other commodities around the globe, as a rapid assessment of the UN’s Conference on Trade and Development (UNCTAD) shows.

*The event will be conducted in English.