Most countries could miss minimum wage directive deadline

The majority of EU member states have still not started the process of putting the minimum wage directive into national law – just weeks before the deadline for implementation.

Around 20 million workers should benefit from the directive which requires member states with statutory minimum wages to ensure they are adequate, and for all member states to promote collective bargaining.

The deadline to complete the process of putting the directive into national law, known as ‘transposition’, is November 15. However, just six member states have so far brought forward legislation putting the directive into national law.

Discussions are still ongoing in nine member states, while the process has not even begun in seven member states. In three member states, governments have concluded no legislative action is required to fulfil the requirements of the directive.

The analysis is part of the ‘Wage Up’ campaign by the European Trade Union Confederation (ETUC) to ensure member states fully deliver on their obligations under the directive.

 

Published draft legislation Belgium, Hungary, Latvia, Luxembourg, Poland, Romania
Preparations are ongoing Austria, Bulgaria, Croatia, Czechia, Finland, Greece, Netherlands, Slovakia, Spain 
Process not started Cyprus, Estonia, France, Italy, Lithuania, Malta, Portugal
Say no action is required Germany, Ireland, Slovenia

Source: Information from ETUC affiliates

The new online tool launched by the ETUC to monitor the implementation of the minimum wages directive also found:

- Only two countries achieved the adequacy of minimum wages in line with proposed double decency threshold: 60% of the gross median wage and 50% of the gross average wage.

- Only eight countries meet the target of having collective bargaining coverage of at least 80%. 

- In-work poverty is still above 10% in seven EU member states.

- Eight EU member states currently allow sub-minimum rates of pay for young people, allowing employers to pay young people up to 70% less than the statutory minimum wage. 

- Women workers in the EU, who are more likely to earn the minimum wage due to the undervaluing of jobs predominantly done by women, still earn up to 21% less than men.

Commenting on the findings, ETUC Confederal Secretary Tea Jarc said:

“At a time when millions of people are stuck in poverty despite working hard every day, putting the minimum wage directive into action should be a priority for all national governments.

“The cost-of-living crisis has made it even more difficult for workers paid the minimum wage to make ends meet despite the fact that corporate profits have been increasing.

“The directive requires member states to take action to ensure statutory minimum wages are adequate and to promote collective bargaining as the best way to ensure genuinely fair pay.

“Working people have already waited two years for this directive to be implemented and should not be made to wait any longer.

“Some member states have made good progress or already have the required standards in place. But most national governments should stop dragging their heels and finally turn these promises into a reality.”