Edition: International | Greek
MENU

Home » EU Actually

Commission proposal on minimum wages is ‘a recipe for disaster’

The European Commission has proposed an EU directive on minimum wages and collective bargaining

By: N. Peter Kramer - Posted: Thursday, October 29, 2020

"The European Trade Union Confederation is in favour of the proposal, although the Nordic countries are against legal interference in autonomous collective bargaining on wages amongst social partners."
"The European Trade Union Confederation is in favour of the proposal, although the Nordic countries are against legal interference in autonomous collective bargaining on wages amongst social partners."

by N. Peter Kramer

The European Commission has proposed an EU directive on minimum wages and collective bargaining. The Commission opts for a directive with common compulsory principles for all member states for the reason that President Ursula von der Leyen, when she took office, has given a ‘string political commitment with fair wages’, explained Nicolas Schmit, Commissioner for Jobs and Social Rights.

It is clear that the proposal goes against the majority view of the member states. Many of them are in favour of a non-binding instrument, but the Commission opts for a directive with common compulsory principles for all member states. According to BusinessEurope Director General Markus J. Beyrer the Commission ignores the strong objections of the European business community. ‘What the Commission is proposing is a legal monster. It can only lead to problematic jurisprudence because the proposed derogations cannot alleviate the problems created by the obligations foreseen’. ‘It is a recipe for disaster’, writes Business Europe.

The European Trade Union Confederation is in favour of the proposal, although the Nordic countries are against legal interference in autonomous collective bargaining on wages amongst social partners. A question is also, isn’t the proposal against the word and spirit of the EU Treaty which protects national competences on pay and collective bargaining.

Markus Beyrer said also, ‘Companies are fighting for their survival and to save jobs threatened by the COVID-crisis. They have no margins to absorb the costs of dangerous experiments on minimum wages at EU level’.

We can at least say, the presentation of the Commission proposal wasn’t on the right sensible moment…

READ ALSO

EU Actually

EU prophets of doom were wrong

N. Peter KramerBy: N. Peter Kramer

Following the 2016 referendum in the UK there were predictions by EU prophets of doom, like chief-negotiator Barnier, that banks, hedge funds and other financial firms would leave London’s City en-mass

View 04/2020 2020 Digital edition

Magazine

Current Issue

04/2020 2020

View past issues
Subscribe
Advertise
Digital edition

Europe

European industry more competitive if digital transition investment made now: Vestager

European industry more competitive if digital transition investment made now: Vestager

European Commission executive vice-president Margrethe Vestager said on Thursday (25 February) that European industry would be “even more competitive in a digital future” if it starts investing “now” in people, technology and the right regulatory frameworks

Business

The Fourth Globalisation and EU business families

The Fourth Globalisation and EU business families

The often-unsaid truth of European business is that it is shockingly concentrated in a relatively small number of families. Part of that is by design

MARKET INDICES

Powered by Investing.com
All contents © Copyright EMG Strategic Consulting Ltd. 1997-2021. All Rights Reserved   |   Home Page  |   Disclaimer  |   Website by Theratron