On October 28th, the European Commission published its proposal for a directive on adequate minimum wages in the European Union. It’s a watershed in the history of European social and economic integration: for the first time, the commission is initiating legislative action not only to ensure fair minimum wages but also to strengthen collective bargaining in Europe. [...]
Without a clear and common definition of wage adequacy at EU level, there is a clear danger that some member states will apply a very restrictive definition, which will fail to foster real improvement of minimum-wage levels. In its impact-assessment report, the commission has calculated that an increase of national minimum wages according to the double decency threshold—60 per cent of the median and 50 per cent of the average wage—would improve the wages of around 25 million workers in Europe. This estimate should be the decisive benchmark to measure whether or not the directive is a success: either it will genuinely contribute to the improvement of wages or it will remain a political symbol with no discernible impact. The inclusion of a more precise definition of adequate minimum wages in the legal provisions of the directive will thus be a core issue in the debates on its adoption. [...]
The proposed directive certainly has the potential to improve the wages of millions of Europe’s low-wage workers and strengthen their collective-bargaining position. To ensure its effectiveness however requires recognising there is much room for improvement, especially on more precise and binding criteria for adequate minimum wages and more practical tools for the promotion of collective bargaining.
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