In October 2020, the European Commission proposed a framework directive on minimum wages. The proposition may be divisive but according to Social Europe, the EU is competent to do so.
From the beginning of her mandate, the president of the European Commission - Ursula von der Leyen - promised to ‘put forward a framework to ensure that every worker in our Union has a fair minimum wage’. Speaking in October 2020, she proposed a directive ‘on adequate minimum wages in the European Union’ and the commission kept this promise. (Links via original reporting)
The commission does not by any means, envisage a uniform statutory minimum wage for the EU. The directive would instead establish prerequisites for national minimum wages. To avoid any conflict with collective bargaining and wage-setting by social partners, the directive would also protect and promote collectively agreed minimum wages. This is reportedly crucial as the share of workers covered by collective agreements in Europe has been declining for many years.
However, the intense debate has little to do with the protection of collective agreements. The proposed minimum thresholds for statutory minimum wages in the member states led to the controversy. Critics argue that the EU is just not competent to legislate on a binding framework for national minimum wages. Social Europe explores the story in greater detail.In October 2020, the European Commission proposed a framework directive on minimum wages. The proposition may be divisive but according to Social Europe, the EU is competent to do so.
From the beginning of her mandate, the president of the European Commission - Ursula von der Leyen - promised to ‘put forward a framework to ensure that every worker in our Union has a fair minimum wage’. Speaking in October 2020, she proposed a directive ‘on adequate minimum wages in the European Union’ and the commission kept this promise. (Links via original reporting)
The commission does not by any means, envisage a uniform statutory minimum wage for the EU. The directive would instead establish prerequisites for national minimum wages. To avoid any conflict with collective bargaining and wage-setting by social partners, the directive would also protect and promote collectively agreed minimum wages. This is reportedly crucial as the share of workers covered by collective agreements in Europe has been declining for many years.
However, the intense debate has little to do with the protection of collective agreements. The proposed minimum thresholds for statutory minimum wages in the member states led to the controversy. Critics argue that the EU is just not competent to legislate on a binding framework for national minimum wages. Social Europe explores the story in greater detail.