Wage decrease: public sector loses its profitability
According to the National Statistics Committee the average nominal wage actually two-folded in 2011 (January 2012 to January 2011) from Br 1.409 million to Br 2.880 million (204.1%). However, the inflation during the period reached 209.7%, respectively, wages, adjusted for inflation in January 2012 amounted to 97.3% of the January 2011 wages.
Wages grew faster than inflation in the chemical industry (by 157.8% up to Br 7.683 million), in petroleum production industry (by 109.6% up to Br 6.35), oil extraction (by 115.7% up to Br 5.298), textile industry (by 105.6% up to Br 2.207 million), financial sector (by 101.0% up to Br 5.158) and some other (the highest wage growth has been registered in the IT sector – by almost 200%). However, analysis of this data makes it clear that a significant increase in the wages in the textile industry did not result in a substantial wage increase due to the industry’s low base effect – wages in the textile industry, which is dominated by women, have traditionally been the lowest in the industrial sector.
In some industries wages remained high compared with other sectors, regardless of the fact that their growth lagged behind the inflation, for instance, fertilizers production, production of vehicles, machinery and equipment, insurance business. Relatively high level of income has been retained by the staff of higher education institutions (Br 4 million) and doctors (Br 4.2 million).
Disproportions in wages were accompanied by staff cuts in almost all sectors of the economy, except trade, finance, education and healthcare. Moreover, unlike workers of trade and finance industries who retained and increased their incomes, employees of educational and health care industries (except for the above-mentioned two categories: doctors and university professors) suffered severe losses. The largest saff cuts were in the construction, textile and wood processing industry.
As a result, the “average salary”, i.e. nominal wage ranging between Br 2.5 - 3 million has been paid to 12% of employees only, more than a half (55.7%) of employees received less than Br 2.5 million and one third (32.3%) – more than Br 3 million. The average salary of public sector employees constituted Br 2.5 million (including military personnel, law enforcement, customs, etc.).
It is worth to mention that the incomes of the staff in the public administration have been affected the most (in January 2012 they received 71% of their January 2011 wages), nevertheless incomes of this group of employees fit into the “average”, closer to the bottom of the range (about Br 2.5 million). The overall number of employees of this economic group is relatively small – 84,000 (all in all the economy employs 3.4 million people) however the loyalty of these workers is an important pillar of social stability.
Low wages in the public administration reduce the prestige the government as an employer, create additional incentives for corruption and threaten the loyalty of state officials in critical situations. Among the government institutions, the lowest wages are in the local administrations, National Statistics Committee, Ministry of Taxes, Ministry of Justice, Ministry of Information and State Customs Committee.
It should also be noted that according to unofficial data (the National Statistics Committee has no data in this regard) wages of employees of the Ministry of Internal Affairs and of the Ministry of Defense do not keep up with the inflation, and generally fit into the “average”, closer to the top of the range (Br 3 million and a bit more).
President Lukashenka continues to rotate staff and rejuvenate heads of departments and universities following new appointments in regional administrations. Apparently, new Information Minister Karliukevich could somewhat relax the state policy towards the independent media and introduce technological solutions for retaining control over Belarus’ information space. New rectors could strengthen the trend for soft Belarusization in the regions and tighten the disciplinary and ideological control over the student movement in the capital.
President Lukashenka has appointed new ministers of culture and information, the new rector of the Belarusian State University and heads of three universities, assistants in the Minsk and Vitebsk regions.
The new Information Minister Karliukevich is likely to avoid controversial initiatives similar to those former Minister Ananich was famous for, however, certainly within his capacities. Nevertheless, the appointment of Belarusian-speaking writer Karliukevich could be regarded as the state’s cautious attempt to relax environment in the media field and ensure the sovereignty of national media.
The Belarusian leadership has consolidated the trend for mild Belarusization by appointing a young historian and a ‘reasonable nationalist’, Duk as the rector at the Kuleshov State University in Mogilev. Meanwhile, while choosing the head of the Belarusian State University, the president apparently had in mind the strengthening of the ideological loyalty among the teaching staff and students at the main university in order to keep the youth movement at bay. Previously, Korol was the rector of the Kupala State University in Grodno, where he held purges among the disloyal teaching staff.
The trend for the renewal of mid-ranking executives and their rejuvenation has confirmed. The age of the Culture Minister and three new rectors varies from 39 to 44 years old.