Low pay/minimum wages, Privatisation
Fighting privatisation and defending public services
Across Europe the quantity and quality of our public services and the pay and conditions of our members are under threat from privatisation. EPSU is committed to fighting privatisation in any of its forms whether contracting-out and sub-contracting, public-private partnerships or various processes of commercialisation or marketisation. This briefing on privatisation was produced for the EPSU Congress in 2019 and covers the main work done over the last Congress period and the priorities for the current period.
Public and private sector efficiency is an important report that provides a comprehensive overview of academic research that challenges the idea that the private sector is more efficient than the public sector. The future is public is the latest update on insourcing highlighting the trends to bring privatised services back under public ownership and control.
Industrial action secures lump sum payments
Health workers around the country, many of them employed by private contractors and among the lowest paid, have had to resort to strike action to ensure they get a £1600+ (€1870) lump sum payment that was paid to most directly employed staff last year. Action has just paid off for members of UNISON and Unite in Dudley in the West Midlands where until recently their employer, Mitie, had refused the payment. UNISON members were also successful following their action in the South West against the contractor Sodexo and Wiltshire Health and Care, a company jointly owned by three NHS trusts. UNISON
ETUC says cost-of-living crisis is not over for millions of workers
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
ILO adopts agreement on living wages
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
Study investigates factors influencing low pay
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
Switzerland: union warns against impact of new health financing system
The vpod/ssp public services has launched a campaign and petition – “Nein zu EFAs” – to try to block changes to the healthcare financing system in Switzerland that will have seriously negative consequences for staff and patients.
Briefing finds minimum wage directive already having an impact
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
Unions agree deals in municipal and regional government
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
Unions mobilise to secure COVID payments and pay rise
The UNISON, Unite and GMB trade unions have been mobilising their members in the NHS and private contractors to secure unpaid COVID bonuses and pay rises. UNISON and Unite members are taking on Mitie, the large private contractor, which has refused to pay a COVID bonus despite the company being signed up to the national Agenda for Change agreement which requires the payment. Meanwhile, Unite members formerly employed by the contractor Serco but now directly employed by the NHS at Bart’s Hospital in London are also claiming their COVID payment which the hospital management have so far refused
Collective agreements and minimum wages in low-paying sectors
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
Report highlights importance of government role in supporting collective bargaining
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