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The European Commission has put forward an EU proposal for a European minimum wage to guarantee a decent life for EU workers, European Commission President Ursula von der Leyen said on Wednesday. He said that a decent life in the European Union was essential for the recovery from the coronavirus epidemic and for the creation of a fair and strong economy, and that minimum wages played a key role in this.
The proposal will also help protect employers who at the same time pay fair wages to workers by ensuring fair competition.
– added the President of the European Commission.
Member States are expected to be asked to lay down rules stating that all European workers have the right to a living wage.
A minimum wage set at the appropriate level not only has a positive social impact, it also has broader economic benefits, reducing wage inequalities, helping to maintain domestic demand and further promoting employment. It also contributes to reducing the gender pay gap.
The proposal concerns the framework of the minimum wage, respecting national traditions, national competences and the freedom of contract of the social partners. It also helps protect employers who pay fair wages to employees at the same time by ensuring fair competition, he said.
Still, there will be differences between the richest and the poorest states.
At the same time, it does not oblige member states to introduce legal minimum wages or set a common minimum wage level, emphasized Ursula von der Leyen.
On the issue of a common minimum wage, EU Commissioner for Employment and Social Rights Nicolas Schmit said that introducing such a requirement would be “completely impossible” and would ruin the economy. Since there are differences in the economic performance of the different Member States, a full identity with respect to the minimum wage is not possible, but efforts should be made to catch up and reduce the differences. He noted that the European Commission does not promise the same minimum wage to all Europeans. That would not be realistic, logical and responsible, he emphasized. The EU commission is working to foster a positive trend in minimum wage setting, he added.
According to the communication from the European Commission, although there is a minimum wage in all EU Member States, the protection of the provision of a minimum wage is insufficient or deficient in most of them. Therefore, the proposed directive establishes a framework to improve protection and guarantee access to minimum wages throughout the European Union. It identifies actions and how to ensure an adequate level of minimum wage, proposes to eliminate or limit fluctuations and exemptions from the minimum wage, and the effective application of national minimum wage frameworks and the introduction of control mechanisms.
It also aims to facilitate collective bargaining in all Member States.
Countries that regulate the level of the minimum wage by law must create the conditions to determine the appropriate level of the minimum wage. The conditions must include, among other things, clear and stable criteria for setting the minimum wage and the periodic and timely updating of the minimum wage system. The proposal provides for better implementation and monitoring of the protection of the minimum wage established in each country. The proposed directive requires member states to draw up an annual report on their minimum wage protection measures, which they must submit to the European Commission.
One of the most vocal and electoral promises of the Democratic Coalition in the EP campaign was the introduction of a European minimum wage. Klára Dobrev wrote on her community page:
That is what we have promised and we will keep our promises. We have accomplished what no one has done before. There will be a rule in the European Union that will have a direct effect on improving people’s standard of living. Social Europe is no longer a dream, because it has really begun to be built. No Member State can circumvent European minimum wage rules. They will be binding on the governments of all EU countries.
The President of the European Commission delivered an annual evaluation speech. A coronavirus vaccine promised to all in need.
(Cover image: Ursula von der Leyen speaks at today’s video conference in the Brussels press room. Photo: Virginia Mayo / AFP)
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