Brussels agrees on a common criterion to set an “adequate” minimum wage in the EU

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The agreement, which comes after two years of negotiations, does not entail setting a common minimum threshold for the twenty-seven. The text thus recognizes the “diversity” of state models and promotes collective bargaining.

This Tuesday the Parliament and the European Council have a interim agreement to establish a common framework to ensure that “adequate” minimum wages within the European Union, but which, however does not imply setting a common minimum threshold for twenty-seven.

The agreement reached at the level of the negotiating teams of both institutions creates a legal framework to guarantee access to minimum conditions for all EU workers.

The pact, which comes after almost two years of negotiation, recognizes the “diversity” of state models and promotes collective bargaining. The agreement has yet to be approved by the European Parliament and the twenty-seven to be final. After its entry into force, Member States have two years to transpose the Directive into constitutional law.

In some European countries, such as the Scandinavian countries, the minimum wage is determined by collective bargainingwhile in others, such as the Spanish state, is determined by law

Collective bargaining is promoted

The text asks Member States with a statutory minimum wage to procedural framework to identify and update them according to a set of clear criteria.

For example, the Council and the European Parliament have agreed that the updates will at least take place every two years or at most every four years for those countries using an automatic indexation mechanism. also the labor unions must participate in these procedures.

In fact, the agreement sees collective bargaining as “an important tool” to ensure that workers can benefit from “adequate” minimum wages, and therefore calls for the promotion of the participation of social actors. For example, when the coverage of collective bargaining falls below the 80% threshold, the Member States should draw up an action plan to promote this.

“With the agreement on minimum wages, we are writing socio-political history in Europe. For the first time, EU legislation will directly contribute to fairer and better wages for workers,” said the rapporteur of the European People’s Party Group of the European Parliament, Dennis Radtke. , in a statement.

For its part, the socialist rapporteur and MEP Agnes Jongerious has indicated that with this European law “we are reducing wage inequality and pushing for higher wages for the lowest paid workers in Europe”.

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Source: EITB

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