Tackling low pay - EPSU Policy Document
Collective Bargaining and Social Dialogue in the Public Services
Tackling low pay
EPSU Policy Document
Introduction
Despite steady long-term economic growth and increases in living standards, low pay poses a challenge for trade unions. Figures from the European Commission’s statistical agency Eurostat indicates as many as 20 million workers are low paid. Poverty also remains a major problem across Europe. The most recent analysis by Eurostat indicates that around 72 million EU citizens were at risk of poverty in 2003 . The public services can claim to have a reasonable record on low pay with a tendency to apply more equal pay structures than those in the private sector. However, these pay structures often come under pressure from outsourcing and human resource management policies that emphasise more market-related and individualised pay rates.
EPSU believes that low pay is a central priority both for the federation as a whole and all its affiliates. Low pay is bad enough in itself but it usually has a negative impact on other elements of an individual’s own or family life. At work the low paid are less likely to be able to take advantage of training and other benefits such as sick pay and pensions. Outside of the workplace they are also more likely to suffer poorer health than those on higher incomes. As a major campaigning organisation and the biggest of the industry federations within the ETUC, EPSU believes that if affiliates mobilise both at a political level and in terms of their collective bargaining policy then EPSU has the potential to make a real difference to the thousands of low-paid workers across Europe.
Bearing in mind that women make up the vast majority of low-paid workers, a successful campaign, linking up with other union organisations and campaigners, would also be a major step towards closing the gender pay gap.
Table of contents:
Introduction
The debate in EPSU
Low pay as a European and global issue
“Decent” pay - the view from the United Nations and ILO
European Commission and European Parliament
Council of Europe
Solidarity bargaining
Definitions of low pay
Council of Europe and OECD thresholds
Eurostat measures
Definitions of low pay and living wages
Extent of low pay
Pay inequality linked with low pay
Public services
Factors which keep pay low
Privatisation/outsourcing and market testing
The “reform” or “modernization” agenda
Erosion of collective bargaining coverage
Increase in “precarious” employment
Minimum wages
How minimum wages relate to Eurostat benchmark
Debates about statutory minimum wages
Low pay and collective bargaining
Recent bargaining developments on low pay
Collective bargaining targets
EPSU policy
Make low pay a priority issue
Minimum wage rates as a percentage of average earnings
References
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