In principle, general salary adjustments (=> everyone gets a little more) and performance- and development-related adjustments (=> you get more for your special contribution/your own development) are not mutually exclusive. In tariff-bound companies, there are also various possibilities for how something like this is usually represented. Sometimes there are tariff bands (-> within a classification there is still room for negotiation) or experience levels (-> the assumption that your accumulated experience + loyalty to the company is also worth something) or of course classic higher classification/change to a job with a higher classification. In addition, general adjustments for everyone are still occasionally made. This is then what on the one hand ensures that with new hires you keep up with the general wage level, but also ensures that someone who is doing their job but develops rather slowly does not leave because their salary is eaten up by inflation year after year and they would simply earn much more after a company change after a few years.
Whether there should be a mandatory inflation adjustment, I don’t find that so clear either. But if the company is doing well, I do think it is appropriate that at least part of that is passed on to everyone. Ultimately, every small cog is part of the company’s success. You could also say, if you see the company’s success being passed on to you as well, that might motivate you to contribute to it. I still find it fair that someone who contributes more also earns more, but as I said, one does not necessarily exclude the other.