Trade, Low pay/minimum wages, Outsourcing, Tax justice

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

On 13 March, the International Labour Organization’s (ILO) governing body endorsed an agreement on living wages. This acknowledges that decent wages are central to economic and social development and to advance social justice. The document also says that living wages play an essential role in reducing poverty and inequality and ensuring a decent and dignified life. For the ILO, a living wage is the wage level necessary to afford a decent standard of living for workers and their families, taking into account the country circumstances and calculated for the work performed during the normal hours

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

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

The 480,000 workers in municipalities and 140,000 workers in regional government are set to get pay increases of 4% from 1 April as a first instalment of the 6.51% (municipal) and 6.53% (regional) increases over the next two years. An additional 2% fund is available for unions to negotiate separately for different groups of workers and so the overall pay rise will be closer to 8.8% and with an expectation that the real increase overall will be 2.17%. There are also additional amounts for the lower paid. At the end of 2025 there will be further negotiations that will focus on the comparative

EPSU and PSI have sent solidarity greetings to the three union federations – Filctem-Cgil, Flaei- Cisl and Uiltec – in their dispute with the ENEL energy company. The three unions are planning national strike action on 8 March and began a month-long period of industrial action affecting overtime, travel and changes to working hours on 24 February. The unions are angry about the company’s unilateral plans to change working hours arrangements, to outsource operations on the electricity grid, and its refusal to renew the remote work agreement. The three federations argue that the measures will

The UNISON, Unite and GMB trade unions have been mobilising their members in the NHS and private contractors to secure unpaid COVID bonuses and pay rises. UNISON and Unite members are taking on Mitie, the large private contractor, which has refused to pay a COVID bonus despite the company being signed up to the national Agenda for Change agreement which requires the payment. Meanwhile, Unite members formerly employed by the contractor Serco but now directly employed by the NHS at Bart’s Hospital in London are also claiming their COVID payment which the hospital management have so far refused

Fórsa, SIPTU, INMO, AHCPS and other public service unions are consulting their members over the latest pay offer from the government which would provide for a series of pay increases over a 30-month period from 1 January 2024 to 30 June 2026. The unions have until 25 March to complete the ballots. If an aggregate of the members of all the unions vote in favour then the agreement would provide the following pay increases: in 2024 – 2.25% or €1,125, whichever is greater, from 1 January; 1% on 1 June; 1% or €500, whichever is greater, on 1 October; in 2025 – 2% or €1,000, whichever is greater, on

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