[EMEA] Majority of EU minimum wage directive approved by European Court

On November 11, the Court of Justice of the European Union upheld the majority of the European legislation on minimum wages, The Brussels Times reports.

At the end of 2022, Denmark had taken the matter to court, seeking to have the entire directive annulled. However, the Court declared two provisions that were deemed to conflict with the powers of the Member States to be invalid.

Copenhagen reportedly believed the text undermined the division of powers between the EU and its member states by directly interfering in the setting of wages and the right of association.

Denmark was successful on two points, meaning the provision listing the criteria that Member States with statutory minimum wages must take into account when setting and adjusting these wages was annulled.

The rule preventing minimum wages from being reduced in the event of automatic indexation was also annulled.

The rest of Denmark's appeal was rejected. The European directive does not impose a European minimum wage. It does, however, oblige national governments to verify whether the minimum wage in their country also guarantees decent living conditions and to encourage collective wage bargaining.

The Court reportedly found that there was no direct interference with the right of association and that the directive did not oblige member states to impose trade union membership.

In January, the Advocate General recommended that the directive be declared null and void in its entirety. The judges did not follow that advice.

Vooruit MEP Kathleen Van Brempt expressed her satisfaction with the Court's ruling, saying she considered it "good news for millions of working people who today have to watch every penny."

Ms Van Brempt said, "Member States must now really work on adequate wages, decent work and strengthening social dialogue and collective bargaining."

Source: The Brussels Times

(Quotes via original reporting)

On November 11, the Court of Justice of the European Union upheld the majority of the European legislation on minimum wages, The Brussels Times reports.

At the end of 2022, Denmark had taken the matter to court, seeking to have the entire directive annulled. However, the Court declared two provisions that were deemed to conflict with the powers of the Member States to be invalid.

Copenhagen reportedly believed the text undermined the division of powers between the EU and its member states by directly interfering in the setting of wages and the right of association.

Denmark was successful on two points, meaning the provision listing the criteria that Member States with statutory minimum wages must take into account when setting and adjusting these wages was annulled.

The rule preventing minimum wages from being reduced in the event of automatic indexation was also annulled.

The rest of Denmark's appeal was rejected. The European directive does not impose a European minimum wage. It does, however, oblige national governments to verify whether the minimum wage in their country also guarantees decent living conditions and to encourage collective wage bargaining.

The Court reportedly found that there was no direct interference with the right of association and that the directive did not oblige member states to impose trade union membership.

In January, the Advocate General recommended that the directive be declared null and void in its entirety. The judges did not follow that advice.

Vooruit MEP Kathleen Van Brempt expressed her satisfaction with the Court's ruling, saying she considered it "good news for millions of working people who today have to watch every penny."

Ms Van Brempt said, "Member States must now really work on adequate wages, decent work and strengthening social dialogue and collective bargaining."

Source: The Brussels Times

(Quotes via original reporting)