2012 June epsucob@NEWS 12 - Minimum Wages
Minimum wages - a Nordic view
None of the five Nordic countries - Denmark, Finland, Iceland, Norway and Sweden - have a statutory minimum wage. High levels of collective bargaining coverage mean that workers are protected by the minimum wages set in collective agreements. In most cases minimum wages are between 50% and 70% of the average national wage and most workers on the lowest rates would benefit from additional payments. The report provides a very useful overview of minimum wage systems across Europe and summarises the main arguments of the Nordic unions against the introduction of legal minimum wages in their
Minimum wage increase disappoints unions
Trade unions were hoping that one of the first initiatives of the new socialist president François Hollande would be a significant increase to the national minimum wage. However, the 2% increase has been a disappointment with the CGT pointing out that, taking inflation into account, this is effectively an increase of 0.6% and worth roughly the equivalent of a loaf of bread a week The CFDT sees the increase as just one of a number of measures that are needed to improve pay and tackle precarious work while FO argues that it is an inadequate response to the sacrifices forced on low paid workers
Low pay and long hours
The spread of low pay across Germany has lead the trade unions to campaign for a national minimum wage. This is still an objective for the trade unions although in the meantime a number of industries have seen regulations introduced setting a minimum wage for the sector. In a recent report the services union ver.di has highlighted that low-paid workers also face long hours - an average of 45 hours a week with a quarter working 50 hours or more. [Read more on the sectoral minimum wages at > ver.di (DE)->http://www.verdi.de/themen/geld-tarif/++co++71b655f8-ac64-11e0-652e-00093d114afd] [Read more
Minimum wages in Europe - key data
The EU's statistics body, Eurostat, is an important source of information on minimum wages. It provides background to the data as well as statistics on minimum wages across the EU, assessed in terms of purchasing power parities and in relation to national average earnings. Read more at > Eurostat (EN)
Debating a European minimum wage policy
In recent years trade unions, researchers and campaigners have debated the question of minimum wages and the pros and cons of adopting a European policy on minimum wages. This is not about setting a minimum wage at European level but a common target for minimum wages at national level - such as 50% or 60% of national median or mean earnings. This was one part of a debate at an ETUI conference and has been taken up in exchanges between contributors to the website of the Social Europe Journal. [Read more at > ETUI (EN)->http://www.etui.org/Events/What-do-we-and-what-don-t-we-know-about-minimum
Review of minimum wages in 2010 - no or low increases
The EIRO industrial relations observatory produces an annual review of pay developments across Europe, including an assessment of changes to minimum wage rates for adults and young workers. The review of 2010 was published in November 2011 and found that the trend was towards low increases or a freezing of the rates. Read more at > EIRO (EN)
European Parliament resolutions on minimum income
The European Parliament has adopted two resolutions that call for action on minimum incomes as part of a strategy to tackle poverty. A minimum income is a broader concept that minimum wages and refers more to the anti-poverty measures provided by social security systems. However, the 2010 resolution includes a reference to minimum wages, noting that: "poverty affecting people in employment implies inequitable working conditions and calls for efforts to change this state of affairs, through pay levels in general and minimum wage levels in particular, whether regulated by legislation or by