Low pay/minimum wages, EPSU Collective Bargaining News

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

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

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 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

The ZSSS trade union confederation reports that, following unsuccessful negotiations at the Ministry of Public Administration on 14 November, the SDOS public administration trade union organised one-day strike action the day after in seven administrative units across the country. The union demands include an increase in wages for seven pay brackets, improvements to allowances, and a decent level of remuneration for new recruits as part of measures to tackle the current staffing shortage. The SDOS has been pushing for some time for action on a range of issues and the government has failed to

A number of public service trade unions are involved in negotiations with employers and the government to address pay inequality and staff shortages. In September the government set out proposals to provide DKK 3 billion (€400 million) to cover higher pay for social workers, nurses and workers in early years education and care. The government wants part of the deal to provide additional hours for part-time workers. Prison staff are also set to benefit and there is additional funding for them. These negotiations come shortly before and are separate from the normal three-yearly bargaining on the

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

Negotiations over pay and other conditions between the Kommunal trade union and the Visita company that provides catering services for several hospitals have broken down. The union has announced that action by workers at many facilities will go ahead from 14:00 on 15 September unless the company returns to the negotiating table with a commitment to negotiate and particularly to address Kommunal’s proposals to support the lower paid. The union will also block any new hiring as well as implement an overtime ban. Kommunal argues that higher inflation means that it is crucial to deliver pay rises

The ver.di trade union has welcomed the recommendation of the Care Commission to increase minimum wages for long-term care workers but the union also calls for more measures to ensure decent pay in the sector, particularly the negotiation of comprehensive collective agreements, as essential for trying to address the major staff shortages. The three hourly wage rates (skilled, one-year trained and semi/unskilled) will increase by between 6.8% and 9.5% in May 2024 and then by 3.9% to 5.1% in May 2025. So from May 2025 skilled workers will earn at least €20.50 per hour, one-year trained employees

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