Inflation

The macroeconomic consequences of skyrocketing inflation have been clearly visible. The sharply rising prices of raw materials and energy have directly affected Vebego, and Vebego employees have also felt the effects of inflation. The drastic increase in food and energy prices are a heavy burden for many of our employees. Pressure on the purchasing power of our employees can lead to increased stress and therefore a higher risk of absenteeism and long-term absence. For example, in the Netherlands the compensation of high energy costs which the government provided to households is now a thing of the past. This further increases the pressure on our employees' financial households, possibly leading to more absenteeism.

High inflation also played a role in the collective labour agreements. In the Netherlands, interim adjustments were made to the collective labour agreement in cleaning due to the aforementioned high inflation. This created a significant price increase in cleaning, which put a great deal of pressure on price negotiations with customers. In many cases, passing on the increased labour costs in full proves unfeasible, putting pressure on our profit margin. In order to maintain earning power, other solutions are needed, such as reducing working hours or making greater use of innovations. Another directly noticeable effect is the increase in the purchasing costs for cleaning agents and materials. This has a direct impact on the pricing development of our services.

In all of these areas, the companies' management teams are working hard to take mitigating measures. At the moment, Vebego can exert the most influence by supporting its own employees as much as possible and helping them wherever possible. Attention to the causes of absenteeism and guidance for employees is high on the agenda. Being and remaining in constant dialogue with customers has naturally always been part of Vebego's service provision.