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Minimum wage: the EU in favor of a common framework for all countries

2021-12-06T14:10:36.561Z

EU member countries have adopted a legislative proposal from the European Commission which plans to improve low wages. She D



A common framework, but quite broad.

The 27 member countries of the EU adopted, on Monday, a common position on new European rules aimed at improving low wages.

“Work has to pay.

We cannot accept that people who invest fully in their work still live in poverty, ”said Janez Cigler Kralj, Slovenian Minister of Social Affairs, quoted in a statement.

#EPSCo #Social |

Minimal wages 🙌



Read more👇: https: //t.co/xZqu0pURSd pic.twitter.com/XbEBZBPwLl

- EU2021SI (@ EU2021SI) December 6, 2021

The legislative proposal of the European Commission, presented in October 2020, provides binding rules for the 21 EU countries already with a minimum wage in order to promote their increase, but does not set a uniform European minimum threshold.

The text does not oblige either to introduce a minimum wage in the six countries which do not have one (Austria, Cyprus, Denmark, Finland, Italy, Sweden).

On the other hand, it encourages collective bargaining on wages and calls for an action plan from member states where less than 70% of employees are covered by a collective agreement.

The proposal also obliges the 27 to report annually on their wage setting mechanisms.

Read also Increase in minimum wage: nearly 35 euros gross per month which will not end the debate on low wages

For countries with a minimum wage, the text will impose greater transparency and better governance in their setting, with “clear and stable criteria” depending in particular on the level of wealth and productivity.

It will require the “regular reassessment” of minimum wages with the involvement of the social partners.

The French called "not to deviate from the text"

The common position of the member states, which validates most of this text, will allow negotiations to be initiated with the European Parliament, which adopted its position at the end of November.

Once an agreement is reached, member states will have two years to transpose the legislation into their national law.

The Twenty-Seven are historically very divided on the subject, due to the diversity of national systems for setting remuneration.

Meanwhile, minimum wages vary widely within the EU, ranging from 312 euros in Bulgaria to 2,142 euros in Luxembourg, according to figures released last year.

Read also French Presidency of the EU: Emmanuel Macron refines his program

If countries, like France, push to "converge" low wages as quickly as possible, others are slowing down.

Eastern Europe fears in particular a rapid catch-up which would reduce its competitiveness.

The Scandinavian countries, for their part, are opposed to any state intervention and to a questioning of their social model based on collective agreements which has proved its worth.

The compromise reached on Monday finally received "broad support" among member countries "but a strong message not to deviate from the text has been sent to the French" who will hold the rotating presidency of the EU for six months. from January, said a European diplomat who foresees "difficult negotiations" with the Parliament.

Source: leparis

All business articles on 2021-12-06

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