The EU reaches an agreement to set an “adequate” minimum wage

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It does not mean that Brussels is going to force European countries to introduce it by law, nor that they are going to introduce a common minimum income on the continent

The European Parliament and member states reached a political agreement on Tuesday to ensure “an adequate minimum wage” in the European Union. The original proposal dates from a proposal from Brussels in 2020 and will create a framework for minimum income adequacy, promote collective bargaining and improve European protection.

In practice, this agreement does not mean that Brussels will force European countries to introduce a legal minimum wage, nor that they will introduce a common minimum income on the continent.

According to European Commission Economic Vice-President Valdis Dombrovskis, this framework is “a fundamental step forward in protecting workers in the Union. With the impact of the Russian invasion of Ukraine, it is critical that we protect the poorest incomes. Minimum incomes should ensure a decent standard of living while promoting innovation and productivity.”

The Directive contains a basis for setting and updating minimum wages. In this way, there must be a “clear criterion” to determine the basic income, including purchasing power, the cost of living and the increase in wages. The European Commission will also provide a calendar for updating minimum wages and promote collective bargaining.

Member States must collect data on minimum wage coverage and its adequacy and “ensure that workers have access to conflict resolution and a right of redress”. Brussels defends that compliance and effective implementation are “essential” for workers to really benefit from access to minimum wage protection and to foster a competitive environment based on innovation, productivity and respect for social standards.

Source: La Verdad

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