Collective Bargaining, Demographic change, Low pay/minimum wages

The ZSSS trade union confederation reports that some public service trade unions have expressed dissatisfaction with the government's handling of negotiations on wage disparities and the renewal of the wage system. The unions say that the government's lack of commitment to fair negotiations has resulted in a stalemate and the government's failure to provide a counter-proposal for eliminating wage disparities, despite assurances, has led to frustration among union representatives. They argue that the government's approach undermines the importance of public sector workers in maintaining the

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

Labour movement lobbying helped secure a platform work directive that should provide new rights for millions of workers across Europe. The ETUC and EPSU welcomed the outcome of lengthy negotiations and in particular the inclusion of the presumption of employment in the legislation. This means that Instead of individuals going through lengthy court action to prove they are workers, it will be up to the platforms to prove they are not employees. The directive also recognises the role of trade unions in all aspects of the platform economy, including on issues such as algorithm management. Workers

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

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