Transparency & Corruption, Low pay/minimum wages, Central government, Europe, Croatia, Armenia

The European Trade Union Confederation (ETUC) has highlighted that the combination of inflation and pay trends means that the living standards of European workers have still not recovered from the cost-of-living crisis. Data from the European Trade Union Institute’s Benchmarking Working Europe 2024 shows that pay, after inflation is taken into account, fell by 0.7% in 2023. Workers in Hungary (-3.8%), Czechia (-3.8%), and Italy (-2.6%) faced the biggest falls in purchasing power last year. Germany (-0.9%) and France (-0.6%) were also among the 10 member states where wages failed to catch up

New research from the European Trade Union Institute looks at the role that institutional and economic factors play in shaping wage floors and protecting workers at the low end of the wage distribution. Using data for the period 2007 to 2021, it shows that wage inequality has on average declined across the EU, primarily due to convergence between countries. In line with expectations, strong institutional support, such as statutory minimum wages with greater bite and a higher collective bargaining coverage rate, are associated with lower inequality and a better position for vulnerable workers

After lengthy negotiations a new public sector pay structure is in place that means significant increases to the coefficients used to calculate salaries for different occupations. Overall public sector workers are set to benefit on average by 13.5% in comparison to pay levels in 2023. Most unions are generally happy with the new system, including the HSSMS-MT nurses’ and health workers’ union which is one of 11 to sign the public sector collective agreement. However, other unions, including teaching unions, are unhappy with the outcome and argue that the new system fails to deliver appropriate

In its latest briefing on the Adequate Minimum Wage Directive, the European Trade Union Institute (ETUI) finds that the legislation is already having an impact even before it is fully transposed in all member states. According to the ETUI, the Directive’s double decency threshold for adequate minimum wages of 60% of the gross median wage and 50% of the gross average wage has already influenced developments at national level. The briefing cites examples from Bulgaria, Croatia, Germany, Hungary, Romania and the Netherlands where the double threshold or at least one element of it is being taken

A proposed new system of public sector pay has been criticised by unions for failing to provide salary coefficients for different occupations that would be a fair reflection their skills, workloads and responsibilities. The HSSMS-MT health workers’ union has called for proper recognition of nurses’ level of education and have made clear that it feels its members have been less fairly treated than doctors who are taken action against the proposals. The SDLSN union has also expressed concern, particularly on behalf of its members in the Ministry of Justice who took strike action last year over

The European Union’s industrial relations research body, Eurofound, has published a report analysing hundreds of collective agreements across 24 low-paying sectors to try to determine the role of collectively-bargained minimum wage rates in protecting the low paid. The 24 sectors include residential and non-residential social care. The analysis of all the sectors found that agreements in central and eastern European Member States refer relatively frequently and explicitly to statutory minimum wages as the minimum payable rates, rather than including higher collectively agreed rates. The report

A policy brief published by the European Trade Union Institute (ETUI) looks at the role of collective bargaining in providing protection for the low-paid and the important role of government in setting a framework that protects and promotes collective bargaining. The authors found that over time, statutory minimum wages have become increasingly important, while state support for collective bargaining has declined. This is despite the fact that the report finds that state support for collective bargaining appears most successful in containing low-wage employment. The policy brief highlights

The SDLSN is calling on the government to change the rules on representativeness for civil service pay negotiations. The union is involved in various working groups that are discussing the new pay structure for the public sector but it is concerned that the current rules on representativeness exclude it, and other trade unions, from the formal negotiations. It argues that only the police trade union meets the representativeness criterion for the main negotiations leaving many areas of the civil service without proper trade union representation as the SDLSN and other unions fall below the

The HSSMS-MT healthcare union reports that following the third round of public sector pay negotiations, unions have accepted a pay increase of 5%, an improvement on the 3% offer made in the second round of bargaining. The unions have also secured the €300 Christmas bonus that they were looking for and an Easter bonus of €100, less than they wanted but a €30 improvement on the previous offer. There is also a commitment that, should the new pay system not be in place by 1 March 2024, then negotiations would open for a general pay increase.

The Eurofound research agency has published a policy brief which underlines the need to tackle poor job quality among a range of essential occupations, including in the health and care, food systems, cleaning and refuse, transport and protective services sectors, along with manual workers in general. The report argues that these workers’ health and well-being were at risk during the COVID-19 pandemic and continue to be post-pandemic contributing to the labour shortages that persist in these sectors. The policy brief says that critical occupations facing staff shortages, such as jobs in health

The HSSMS-MT health workers’ union reports that in the second round of public sector pay negotiations the government has put forward an offer of a 3% increase along with a €67.73 increase to the Christmas bonus to take it to €300 and a proposed Easter bonus of €70. This contrasts to the initial claim from public sector unions for a 15% pay increase along with bonuses of €300 for both Christmas and Easter along with other bonuses. The government argues that the introduction of a new pay system in 2024 will mean salary increases of 14%. However, the unions argue that the higher increase is

Research by the European Trade Union Confederation has found that payouts to shareholders are rising up to 13 times faster than pay for working people. Taking two examples, dividend payments increased by 75% in Portugal and 66% in Denmark between April and June this year, while nominal compensation in those countries rose by only 6% and 5%. Across Europe, dividends increased by 10% – double the rate at which wages are rising. Meanwhile, the ETUC has also focused on the increase in educational costs for families as children return to school. The price of essential items like pens, pencils

The strike of members of the SDSLN trade union in the Ministry of Justice is over following a close vote to accept the government’s offer of a 12% pay increase. Although below the €400 increase aimed for, the union argues that this is a reasonable increase and goes some way to recognising that workers in the ministry had been undervalued. The SDLSN also notes that it was a significant achievement to maintain the strike and to affirm its legality in the face of legal challenges by the government. The agreement with the government also confirms that the union will be involved in the negotiations

A new analysis by the European Trade Union Confederation (ETUC) and European Trade Union Institute reveals that families face the highest increase in the cost of holidays on record. The price of package holidays at home or abroad has increased by 12.4% across the EU and that follows an 11.5% increase last year. That is the highest increase in the cost of package holidays since records began. The research found that people in Estonia, France, Bulgaria, Sweden, and Czechia have been hit by the highest increases in the cost of a package holiday, with rises between 18% and 31%. According to the

Members of the SDLSN are continuing their all-out action to demand a pay increase for all workers in the Ministry of Justice and they demonstrated their strength of feeling with a major demonstration in Zagreb on 30 June joined by members from across the country. The union continues to highlight the low pay of its members in contrast to their high levels of training, qualifications, responsibilities and heavy workloads. The SDLSN has been calling for improved pay and conditions for workers in the sector for many years.