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 show to be disappointing for trade unions.

The Commission notes that “collective bargaining is a vital part of the social market economy and a stronger foundation once and for all wage environment. ”

During the time that is same it acknowledges that statutory minimum wages do not allow for a significant living, with several employees on insufficient wages. They just do not reap the benefits of efficiency gains throughout the market nor share within the profits of the businesses. The paper additionally acknowledges that wage inequalities have become and that sets of workers have actually little if any bargaining power whilst not all EU governments respect collective bargaining.

EPSU shares most of this analysis and as a consequence finds it profoundly disappointing that the Commission’s paper is in short supply of proposals to cope with this dilemmas. It falls in short supply of exactly what employees anticipate through the Commission since it will not challenge the asymmetries in energy between employees and also the companies.

The newest Commission President Ursula Von der Leyen caused it to be a priority “to make certain that every worker within our Union has a good minimum wage. ” The assessment paper analyses why wages that are minimum, that the problem for low wage workers has worsened and that wage inequalities have actually increased. Employees on part-time work, on-call work along with other non-standard kinds of work are susceptible and subjected to the possibility of in-work poverty. With an increase of women than guys employed in sectors with wages round the minimum wage, action to improve pay shall 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 for the Treaty and partners that are social have actually six days to react. This enables the social lovers to suggest should they want to start a discussion and negotiations on problems covered into the assessment predicated on article 155 associated with the Treaty. The European Commission will not explain exactly exactly just how it’ll handle the outcome of these negotiations. It offers argued into the court instance of EPSU vs the European Commission whatever it wants with the results of these negotiations that it can do. The Commission further thinks that previous practice, as codified in its social discussion Communications since 1993, doesn’t have value. The Commission has hence 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 manager ( 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 in to the ETUC place.

For the assessment paper regarding the European Commission (EN – FR – DE )

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

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Commission disappoints using its reasonable wage assessment paper