Governments back directive on minimum wages and collective bargaining

Europe

The European Trade Union Confederation has welcomed the decision by member states to support the Adequate Minimum Wages Directive that it says will help ensure that millions of workers across Europe get fairer wages and improved rights to collective bargaining. The directive is now set for a final sign-off by MEPs and ministers in September. The proposal includes a framework for setting adequate statutory minimum wages and a duty on member states to promote collective bargaining and combat union busting and to produce an action plan to support collective bargaining in states where coverage is below 80%. It also strengthens the involvement of trade unions in the setting and updating of statutory minimum wages and requires companies receiving public procurement contracts to respect the right to organise and collective bargaining in line with ILO Conventions 87 and 98. A new report from the Eurofound research agency provides an overview of recent developments in statutory minimum wages and found that while they increased substantially between 1 January 2021 and 1 January 2022 in nominal terms, minimum wage workers in 15 out of the 21 Member States with a statutory minimum wage saw a decline in their wages in real terms.

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