Adequate minimum wages in the European Union – proposal for a directive of the European Parliament and of the Council

Abstract

The European Union has no competencies in the field of directly setting wages, but it can propose  common criteria to be taken into consideration when wages are set on a Member State level.  The European Commission is therefore proposing a directive on adequate minimum wages in the European Union. Its twin objectives would be to establish a framework at Union level to ensure fair minimum wages, their adequacy and an increase in their accessibility by workers, and to strengthen collective bargaining in Europe, as high collective bargaining coverage tends to lead to lower share of low-wage workers. The minimum wage will not be uniform across the EU, nor there are any plans to harmonise the systems of setting it. In addition, any possible measures would be applied in a differentiated manner, depending on the systems applicable in particular Member States as well as traditions followed therein, in full respect of the competencies of the Member States, in order to achieve minimum standards through gradual implementation. Nevertheless the proposal is already facing criticism of certain Member States for intrusion into their competencies, as well as of some members of the European Parliament for not being ‘ambitious’ enough.