Low pay/minimum wages, Precarious employment, Corporate Social Responsibility
ETUC says cost-of-living crisis is not over for millions of workers
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
ILO adopts agreement on living wages
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
Study investigates factors influencing low pay
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
Briefing finds minimum wage directive already having an impact
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
EPSU joins 140 organisations condemning blockage of Corporate Due Diligence Directive
The agreement reached between the European Parliament and Council on the Corporate Social Due Diligence Directive has been blocked by an alliance of governments led by France under Macron and with tacit support of Germany and Italy.
Unions agree deals in municipal and regional government
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
Collective agreements and minimum wages in low-paying sectors
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
Report highlights importance of government role in supporting collective bargaining
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
Minimum wage directive - how to deliver on collective bargaining rights
With just under a year to go before all member states of the European Union have to transpose the Adequate Minimum Wage Directive (AMWD), EPSU organised an online briefing for affiliates with a particular focus on the new rights in relation to collective bargaining.
ETUC urges member states to back platform work law
Millions of workers across Europe could benefit from new rights, says the ETUC, if the latest version of the platform directive is backed by member state governments. The text is still being negotiated by the European Parliament, Council and Commission but could deliver important improvements, including a reversal of the burden of proof so that platforms would have to prove that there is no employment relationship. It also will require inspections in the workplace following any reclassification of a worker to assess the situation of their co-workers; transparency over the algorithms that set
Union wins another case against bogus self-employment
The Fagforbundet trade union has secured another legal victory against a care company cutting employment costs by misclassifying workers as self-employed. Three of the union's members in the private care company Recoveryakademiet have been awarded NOK 7 million (€600,000) in back pay (salary, overtime and holiday pay). The three, classified as “consultants” by the company, worked for several weeks without a legal working hours scheme being established, and were therefore paid much less than they were entitled to. They were also denied their right to holiday pay and sick pay. This follows a
Union secures another pay boost for low-paid health workers
The UNISON trade union has secured upgrading and back pay for 60 healthcare assistants employed in accident and emergency services at the Calderdale and Huddersfield NHS Foundation Trust in North East England. This is part of the union’s national campaign to secure the appropriate grading for workers on band two of the national pay scale, but who have been undertaking clinical duties falling under band three. In this case the workers are set to receive around £3,000 (€3.500 in back pay). Managers at the Trust have also agreed to enter negotiations with UNISON in the new year aimed at re