The Polish parliament has just agreed a new formula for increases in the national minimum wage. The EIRO industrial relations observatory reports that it will rise in line with prices plus half the growth in GDP until it reaches 50% of the national average wage. The rate is currently around 210 euros and is the equivalent of 35% of the average wage.
Read more at > EIRO
Minimum wage formula and target
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€1700 is next minimum wage target
With very high levels of collective bargaining coverage, trade unions in Austria have been able to negotiate improved minimum wages without needing any legal minimum wage. In recent years unions have been campaigning to increase minimum wages with a target of €1500 a month. This was achieved in the retail sector earlier this year and now unions like the GPA-djp services union are looking at the next step in the campaign - a target of at least €1700 for minimum wages in all collective agreements. [Read more at > GPA-djp (DE)->http://www.gpa-djp.at/cms/A03/A03_0.a/1342558466181/home/katzian
Unions target €1000 minimum wage
The UGT confederation has launched a campaign for a minimum wage of €1000 a month. This target was discussed earlier this year with the CCOO confederation and the PSOE socialist party. The UGT has set the target for negotiations in collective agreements and also to achieve for the national minimum wage by 2020. The confederation argues that the figure is entirely justified with 3.5% economic growth and businesses now seeing profits and dividends at pre-crisis levels. At the same time average salaries are more than 5% below their 2009 level in real terms.
Confederations reject restrictions of pay formula
The three main trade union confederations have jointly refused to continue negotiations over the next two-year pay deal for the private sector. They argue that the pay formula that guides the negotiations leaves only 0.4% as a basis for salary increases. The unions point out that this would mean only a EUR 6.00 gross increase on the minimum wage and just EUR 9.00 for many jobs deemed to be essential during the pandemic. The unions say that the formula, set in 1996 and revised in 2017, is inappropriate for the current situation and fails to take account of the economic impact of the virus.