Commission disappoints using its reasonable wage assessment paper

(14 January 2020) The European Commission today published its much expected assessment paper on “possible action handling the difficulties linked to reasonable minimum wages” but its key proposals turn out to be disappointing for trade unions.

The Commission notes that “collective bargaining is a vital component of the market that is social and a powerful foundation once and for all wage setting. ”

During the same time, it acknowledges that statutory minimum wages don’t allow for a great living, with several employees on insufficient wages. They cannot reap the benefits of efficiency gains throughout the market nor share within the earnings of these businesses. The paper additionally understands that wage inequalities have become and that sets of workers have little if any bargaining power whilst not all EU governments respect collective bargaining.

EPSU stocks most of this analysis and as a consequence discovers it profoundly disappointing that the Commission’s paper is in short supply of proposals to manage this issues. It falls in short supply of exactly just just what employees anticipate through the Commission since it doesn’t challenge the asymmetries in energy between employees plus the companies.

This new Commission President Ursula Von der Leyen caused it to be a priority “to make certain that every worker inside our Union has a reasonable minimum wage. ” The assessment paper analyses why minimal wages matter, that the problem for low wage workers has worsened and therefore wage inequalities have actually increased. Workers on part-time work, on-call work along with other non-standard types of work are susceptible and confronted with the possibility of in-work poverty. With an increase of women than guys involved in sectors with wages round the minimum wage, action to boost pay will donate to deal with inequalities. A current OECD paper underlined the significance of collective bargaining to deal with such wage and sex pay inequalities.

The paper is a session under article 154 associated with Treaty and social partners now have actually six days to respond. This enables the social lovers to suggest when they wish to start a dialogue and negotiations on dilemmas covered when you look at the assessment predicated on article 155 regarding the Treaty. The European Commission will not make clear exactly how it’s going to cope with the outcomes of these negotiations. This has argued within the court instance of EPSU vs the European Commission that it could do whatever it wants utilizing the outcomes of these negotiations. The Commission further thinks that previous practice, as codified in its social dialogue Communications since 1993, does not have any value. The Commission has therefore undermined the Treaty in addition to autonomy associated with social lovers.

This year after the first phase consultation there will be a second phase consultation foreseen for March or April. EPSU will argue that all employees independent of their company ( general general public, non-profit, private) require a wage that is fair. EPSU’s bargaining that is collective will satisfy on 30 January and subscribe to the formula of an EPSU place and input to the ETUC place.

When it comes to assessment paper for the Commission that is european – FR – DE )

For the EPSU Collective Bargaining Newsletter. It reports regulary on minimum wage developments.

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