15.09.2022
EP: THE MINIMUM WAGE SHOULD BE 50% OF THE NATIONAL AVERAGE
The European Parliament adopted the law on the EU minimum wage, which should oblige member states to "ensure decent living and working standards and promote collective bargaining on pay," said a press release from the parliament.
The new legislation was approved with 505 votes in favour, 92 against and 44 abstentions.
The law was agreed by the EU Council in June and aims to improve the working and living conditions of all workers in the EU, as well as to promote economic and social progress.
For this purpose, it defines minimum requirements for the adequacy of statutory minimum wages provided for in national law and/or collective labor agreements. It also strengthens workers' effective access to these wage protections.
The new directive will apply to all workers in the EU who have an employment contract or employment relationship. Member States where the minimum wage is already protected exclusively by collective agreements will not be required to introduce these rules, nor to make them universally applicable.
This is a key decision in the fight against the crisis with the high cost of living, commented the European Confederation of Trade Unions. A day ago, they released an analysis showing that Europe's lowest-paid workers are suffering greatly from high inflation and a drastic reduction in purchasing power, which has reduced the real value of statutory minimum wages.
The directive provides:
– The minimum wage must be at least 50% of the average in the respective country. Member States to check the adequacy of statutory minimum wages, taking into account purchasing power and the cost of living;
- Every country in the EU should be required to promote collective bargaining and combat the obstruction of trade union activity, and the scope of collective bargaining should be 80%. All countries below this percentage, including Bulgaria, will have to prepare an action plan to support collective bargaining and achieve this scope;
– Strengthening the participation of trade unions in determining and updating the statutory minimum wages;
– Requiring companies awarded public procurement contracts to respect the right to organize workers and collective bargaining in accordance with Conventions 87 and 98 of the International Labor Organization.
The final step in the two-year process of adopting the directive is its approval by the European Council, which is expected to take place in the coming weeks.
"Member states must get serious about raising wages, they shouldn't wait two years before implementing the directive. They must act now to increase statutory minimum wages and encourage collective bargaining. Wages should not leave workers and their families living in poverty, and this has been a reality across Europe for a long time.
Not only by ensuring adequate minimum wages, but also by strengthening collective bargaining as the best solution to achieving truly fair pay for all. We are now urging ministers to sign off on this directive so that working people can start to feel its benefits as soon as possible. The directive fulfills the European Pillar of Social Rights and shows that it is more than a political slogan", commented Esther Lynch, Deputy General Secretary of the European Trade Union Confederation.
Minimum wages in the EU vary widely. They are the highest in Luxembourg, Ireland and Germany, and the lowest in Bulgaria, Latvia and Estonia.
21 member states have a statutory minimum wage, and in the remaining six - Austria, Cyprus, Denmark, Finland, Italy and Sweden - wages are determined through collective bargaining.
