Labour market researchers have criticised the European Commission's narrow focus on competitiveness when analysing wage developments. Guy van Gyes from Leuven University in Belgium and Thorsten Schulten from the WSI trade union research institute in Germany argue that the Commission tends to ignore the structure of the real economy, the non-price factors and the loose relationship between wages and exports. They say that wage developments have the potential to counter deflationary price trends, stabilise and increase private demand, counter income inequality and push for inclusive productivity growth. The debate between the researchers and the Commission was organised by the ETUI at the beginning of January.
Read more at > ETUI (EN)
European Commission view of wages challenged
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ETUC analysis challenges Commission view on wages
On 29 April the ETUC submitted a document to European employment ministers who gathered in Athens for the Employment and Social Policy Council (EPSCO). The report analysed trends in wages, challenging the arguments from the European Commission and European Central Bank that so-called excessive wage increases had contributed to imbalances in the European economy. The ETUC's figures indicate, on the contrary, that over significant periods wages have not kept up with productivity growth. A further briefing, published by EPSU, also shows how wage growth has been outpace by increasing profits - an
Local government challenges Mediation Office's narrow view on wages
The Kommunal municipal trade union has criticized the National Mediation Office for its narrow view of the scope for pay bargaining and failure to acknowledge the need for action to close the gender pay gap. The union agrees that wage developments should take into account the pressures facing the manufacturing and export industries but that there has to be scope for some flexibility otherwise the lower paying sectors that are dominated by women workers will never catch up with other sectors and the gender pay gap will never be closed. [Read more at > Kommunal (SV)->http://www.kommunal.se
Minimum wages - a Nordic view
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