Social Services, PPPs, Low pay/minimum wages

Members of public sector unions have voted by a large majority to accept the pay agreement negotiated earlier this year. The agreement runs from 1 January 2024 to 30 June 2026 and provides for pay improvements worth 9.25% but because of flat-rate elements this rises to 17.3% for lower paid workers. This agreement also provides specific provisions for local bargaining, which will give trade unions the scope to negotiate up to an additional 3% of pay costs, inclusive of allowances, for particular grades, groups or categories of employee. The agreement also sees the full and final unwinding of

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

The ver.di trade union has reached a collective bargaining agreement with the EKBO evangelical church which employs approximately 8,000 employees. The wage increases that were agreed in regional government earlier this year will be taken over in full by the EKBO collective agreement, albeit with a slight time delay. There will be a tax-free one-off payment of €3000 to mitigate inflation followed by salary increases of €200 in January and a further 5.5% in March 2025 by which time full-time pay will be €340 higher per month. In addition, there are improvements to social and educational services

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

Employees of HC-One – the UK’s biggest private care provider – have accepted a pay deal negotiated by the GMB trade union that gives them the contractual right to at least statutory sick pay from day one of any absence. Previously, sick pay only kicked in after three days of sickness. The union points out that this created a perverse incentive for workers to spread germs among the elderly people they care for. The deal comes after a GMB survey of HC-One care workers revealed one in four were considering quitting over ‘poverty pay’. The GMB says that this is a landmark shift in culture for the

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

Trade unions, including Sanitas and Columna, have managed to secure pay increases for workers in health and social services. According to Sanitas, increases in the health sector vary according to occupation but range up to 26.8% with 20% in social assistance. The union has also been able to resolve discrepancies in salaries affecting a number of specific occupations. Meanwhile Columna has also been active in local government where it organised strike action on 19 March involving nearly 19000 workers as it tries to ensure that the pay increases that apply to health, education and social care