The promotion frenzy fueled by high inflation swept over the employees after the retirees. Due to the inflation approaching 80 percent, the retirees started to either change banks or update their existing banks, as the banks increased the promotion up to 7 thousand 500 liras. As such, employees in public or private companies also began to pressure the management to get higher promotions.
The new promotion exceeds 20 thousand liras
Thereupon, some public institutions began to cancel their existing contracts on the grounds that the payments were below the increase in inflation. One of them is Bingöl Special Provincial Administration. The administration unilaterally terminated the ongoing promotion tender and entered the new tender. With the new tender, the amount to be received by the employees was 23 thousand 800 TL.
Contract cancellations began to occur in private companies as well. For example, Yazaki company operating in the field of cable manufacturing in the automotive sector in Bursa announced that they made an agreement on 19.08.2022 to receive a net salary promotion of 22 thousand lira per employee in return for receiving their salaries from Akbank.
Banks are frightened
Economist and banking specialist Erol Tasdelen, said that, upon the developments in the retirement promotion, the companies’ cancellation of old contracts and asking for additional payments started to scare the banks. Taşdelen pointed out that salary payments for banks are more important than pensions. “Banks take a significant portion of the company’s cash flow and earn more than retirees. For example, Vakıfbank gives promotions to courthouse employees because all the payments of the Ministry of Justice go through them.” said. Reminding that companies have two options for salary payments, Taşdelen said, “There are 2 options in companies: If you say ‘I will distribute it to the employee’, you distribute them all without interruption. If you say ‘I will not distribute’, you pay the additional tax as it is reflected as income to the company, so the money stays with the company. For this reason, most companies distribute the promotion to employees.” he said.