Low pay/minimum wages, Quality employment, Europe

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

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 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 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

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

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

The European Confederation of Trade Unions (ETUC) is calling on employers to offer better-paid jobs to end damaging labour shortages across Europe. An analysis of job vacancy rates and wages in 22 EU countries by the European Trade Union Institute (ETUI) reveals that industries with the worst labour shortages pay 9% less on average than sectors where it’s easier to recruit. The ETUC argues that lack of skills is often seen as the main problem, but the new analysis suggests that low pay is one of the main drivers of labour shortages. The ETUI research found that across the EU, the industries

A new briefing on the Adequate Minimum Wage Directive (AMWD) argues that its timely implementation would be a key measure to address the cost-of-living crisis. The briefing by the European Trade Union Institute (ETUI) shows that, despite the dynamic developments of minimum wages between 1 January 2022 and 1 January 2023, the nominal increases have not been sufficient to safeguard the purchasing power of minimum wage earners in almost half the countries with a statutory minimum wage. More broadly the ETUI maintains that the directive has the potential to be a gamechanger, with its dual

An ETUC analysis reveals how families will be forced to cut back on Christmas dinner this year as a result of food prices rising up to seven times faster than wages. The ETUC found that food prices – the second highest contributor to inflation after energy – have increased by 18% across the European Union since last winter. In contract, the latest figures indicate that nominal wages are expected to have increased by 4.4% in the EU by the end of this year. The sharpest increases are happening in Slovenia, where food prices are rising 7.6 times quicker than wages, followed by Sweden (6.4), Spain

The ETUC coordinated a demonstration in Strasbourg on 5 October followed by a meeting with MEPs to highlight the catastrophic consequences of huge price increases on working people and their families. The confederation is calling for decisive action from the EU and national governments including increased wages and income support, a tax on profits and a cap on prices, all covered in a six-point plan. The ETUC wants to see support for collective bargaining, increases to minimum wages and targeted emergency payments for low-paid people struggling to afford their energy bills, along with a ban on

The ETUC welcomed the vote in the European Parliament on 14 September in favour of the Directive on adequate minimum wages with 505 MEPs in favour, 92 against and 44 abstentions. The directive includes important new provisions on the setting of statutory minimum wages, the role of trade unions, new requirements on governments to promote collective bargaining and the obligation to draw up action plans to support collective bargaining where coverage is below 80% of employees. The vote in the European Parliament came shortly after the ETUC published new research showing that Europe’s lowest paid

An ETUC analysis reveals that European companies have paid inflation-busting dividends to their shareholders while workers have been struggling to cope with the cost of living crisis. The value of payouts to shareholders increased by 28.6% in Europe during the second quarter of this year, according to the newly-published Janus Henderson Global Dividend Index. That’s more than seven times faster than the rate at which wages are rising across the European Union. Dividend increases were particularly high in Spain (97.7%), Italy (72.2%), Germany (36.3%) and France (32.7%). The ETUC argues that the

The beginning of the month was the deadline for the transposition of the Transparent and Predictable Working Conditions Directive (TPWCD) into national law. The directive is a significant update and revision of the Written Statement Directive and provides a range of new rights in relation to training, probationary periods, second jobs, advanced notice of work schedules, protection against abuse of zero-hours contracts and transfers to more secure employment. A major concern for EPSU has been the clause that allows Member States to deny key rights to public service workers. It is not yet known