Low pay/minimum wages, Pay settlements, Privatisation

Members of the FNV trade union are currently voting on whether to accept a new collective agreement covering central government. The deal includes a €1200 one-off payment for full-time employees to compensate for inflation paid in May this year even before the current agreement expires. On 1 July there will be an 8.5% pay increase plus €50 and an increase in the individual choice budget by 0.13% to 16.50% of the salary. A one-off payment of €800 will follow in November 2024 and a further payment of €350 on 1 July 2025. The one-off payments add up to €2350 (pro rata for part timers). The

The Council of Ministers in Bulgaria has agreed to allocate BGN 180 million (€92 million) for a salary increase benefiting 53,000 state administration employees. This increase, averaging BGN 283 (€145) retroactively from 1 January, aims to address disparities in salaries within the public sector. A decree approved by the Council of Ministers outlines the allocation of a total of BGN 268 million (€137 million) in the budget for this purpose. The KNSB and Podkrepa federations actively participated in negotiations over the past three months to develop the methodology and distribution of these

The collective bargaining committee of the ver.di trade union in the TG GWE bargaining group has voted by nearly three to one to back a new 23-month agreement. The negotiations cover gas, water and energy workers who get a 6.5% pay increase this year (from 1 February) and 3.7% next year – from 1 January. Trainees will see their pay levels increase by 3% for each year of training. Meanwhile the union’s members at ONYX Power have made clear their priorities in the upcoming negotiations where ver.di will be demanding a 12-month agreement with a 14% pay increase for all employees, including

The SINTAP trade union has reached an agreement with Águas de Portugal water company that applies to the union’s members and delivers a 3% increase, with a minimum of €53, an increase in the food allowance to €7.60, as well as establishing an entry salary in the company of €905. Workers with more than 10 years’ service get further improvements. Meanwhile, the STAL trade union has been active in the waste sector where it has been involved in protest and industrial action to secure better pay and conditions for workers in the FCC and Resinorte companies. At FCC the demand is for a 15% pay

The Fagforbundet trade union reports that the outcome of negotiations in the industrial sector which delivered a central pay rise of 5.2% and extra benefits for the lower paid, provides a good basis for negotiations in the public sector. Fagforbundet is particularly focused on ensuring that all workers in the public sector get a good increase and that those with the least receive the most. The industry deal marks the end of a trend of several years of declining real wages in manufacturing. The 5.2% increase is ahead of the expected rise in prices of 4.1%. Industrial unions have also won an

Trade unions in the municipal sector have been negotiating with the SKR and Sobona employer organisations in local and regional government with differing outcomes so far. The Vision trade union, representing mainly white-collar workers has settled on the basis of a 3.3% general pay rise and commitments to a review of working hours and joint initiatives to deliver healthier workplaces. The Vårdförbundet health professionals’ union has gone to mediation mainly because it has major concerns over the employers’ proposals on working time and the work environment which it believes will mean worse

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

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

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