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How much does a family of four need for one month? According to the Ministry of Economy and Labour - 58,475 denars for August. According to the Federation of Trade Unions of Macedonia - 68,675 denars for August. The difference is exactly 10,200 denars, and the government's figure was announced by minister Besar Durmishi, who also presented the new methodology.
The biggest gap is in food. The ministry calculated 21,132 denars for food and drink, the unions 25,032 - 3,900 denars more. For health services the government basket allows 1,429 denars. The unions' basket for September is already at 69,432 denars, and for a family that rents, the unions calculate 84,807 denars.
Spending is not need
Durmishi says the ministry's calculation tracks actual spending: data from the State Statistical Office, prices from eight towns, 23 fruit and vegetable markets, and the best-selling products in the five biggest and three regional retail chains. It also factors in the census finding that 95 percent of the population lives in a home they own - which matters when housing costs are calculated. "We don't want to get into a contest over whose basket is higher or lower," the minister said.
The problem with "actual spending" is obvious, though: a family without money does not spend less because it needs less, but because it does not have it. When shoes, a doctor's visit or a repair at home get put off, the basket looks lighter, but life does not.
Two minimum wages don't cover even the smaller basket
This is the unions' strongest argument, and it does not depend on whose methodology is more accurate. According to the unions, even with the government's lower basket, a family on two minimum wages is 6,383 denars a month short. "Instead of cutting the value of the Union minimum basket by 19.5 percent down to the government's average basket, wages need to go up by 19.5 percent," said union federation president Slobodan Trendafilov. The unions are also surprised that the government basket was published without the agreement of the Economic and Social Council.
The methodology will be discussed at the Economic and Social Council's session on 19 October, where the minimum wage is also expected to be on the table. That is where we will see whether the new basket becomes a tool for higher wages - or an argument against them.
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