Decent minimum wages across Europe - Press release

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The European Union is facing the worst recession in its history due to the COVID-19 outbreak, and we must ensure that it does not turn into a social emergency and that workers do not pay the price. The EESC opinion Decent minimum wages across Europe, requested by the European Parliament, evaluates the wage landscape and possible ways to guarantee that every worker in Europe benefits from a fair minimum wage. Action at EU level could bring added value by ensuring that Member States cannot set their statutory minimum wages below a decency threshold set well above the poverty threshold, thus ensuring that it is not only a minimum wage, but also a living one. Safeguarding quality jobs, guaranteeing decent living wages - including minimum wages - and strengthening collective bargaining coverage must be part of the EU's recovery strategy

Many of the essential workers who kept our communities and economies going at the height of the COVID-19 pandemic are minimum wage earners and are often undervalued and under paid. Decent minimum wages are a key instrument in tackling issues such as in-work poverty and social exclusion. The Workers' Group firmly believes that the EU has a role to play, while fully respecting the autonomy and role of the social partners in wage setting and, safeguarding the systems in Member States where wages floors are set by collective bargaining. It, therefore, welcomes the European Commission's commitment to presenting a legal initiative on fair minimum wages. Such action would be a key aspect of the implementation of the European Pillar of Social Rights and would contribute to upward wage convergence in the EU, as well as halting a race to the bottom in wage competition among the Member States.

The COVID 19 situation has again highlighted many of the weaknesses in the European labour markets, particularly the insecurity faced by many workers. Rising unemployment, loss of union density and collective bargaining coverage, massive salary divergences within and among countries, as well as an increase in so-called new forms of work without adequate protections, are key aspects of this disturbing landscape. Too many workers, particularly the most vulnerable, do not have access to traditional social protection mechanisms, are forced into bogus self-employment and are not covered by collective bargaining. This opinion assesses the need for and the ways in which EU action on fair minimum wages and to support collective bargaining, would ensure improved living and working conditions for workers in Europe.

The Workers' Group believes that the European Pillar of Social Rights and Articles 153 and 155 of the EU Treaty (TFEU) provide a background and legal basis for action at EU level. Surveys conducted by the EESC in the preparation of this opinion showed strong support from trade union and civil society organisations for such an initiative. In addition to minimum wages, the opinion also highlights the importance of a European framework for minimum income and for common minimum standards for unemployment insurance schemes – which are existing EESC recommendations - thus ensuring that the elimination of poverty in the European Union is pushed from all possible angles.

Welcoming the adoption of the opinion, the Workers' Group President Oliver Röpke said ‘If Europe still wants to strive for a fairer future for all, the proposal for an initiative on minimum wages must be made a reality as a matter of urgency. This would also be an important signal regarding the future direction of Europe. We therefore expect that the European Commission's proposal, to be presented in October, will be a definitive step towards ensuring that all workers in the EU are protected by fair minimum wages allowing for a decent standard of living wherever they work. As the Commission President Ursula von der Leyen stated in her State of the European Union address "dignity of work must be sacred". Quality jobs, with fair wages – including decent minimum wages across Europe –along with strong and effective social dialogue and collective bargaining are essential for dealing with social, economic and labour market challenges, securing the recovery and a sustainable future for the EU".

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