Guaranteed minimum wage, proposal for an EU directive for the social sustainability of work

In Europe, according to Eurostat data, the percentage of people living in poverty, despite having a job, is equal to 9,4% of the total employed workforce. National minimum wages remain below 50% of the average wage and nearly 60% of workers earning a minimum wage are women.

Not very comforting data, which have worsened in the last year, following the contingent economic and social crisis resulting from the Covid-19 epidemic, which particularly affected those sectors characterized by a high percentage of low-wage workers, such as cleaning, retail, healthcare and agricultural workers.

This scenario includes the proposal for a European directive on adequate minimum wages, approved by the European Parliament, which proposes an adequate minimum wage, fair conditions for digital platform workers and the achievement of a balance between work and private life, for a effective and complete job sustainability. (1)

The common reference "plan", minimum uniform safeguards

The proposal the European Union does not establish a European minimum wage, nor does it oblige Member States to establish it by law. It limits itself to establishing uniform minimum protections in all Member States, which nevertheless have a significant impact on important aspects of bargaining.

The new directive European Union creates a common reference plan, to which Member States will have to comply, in order to improve the adequacy of minimum wages and guarantee access to the protection of the minimum wage for all workers and this, through specific actions, such as:
1. promotion of collective bargaining in all Member States,
2. definition of clear and stable criteria for determining and updating minimum wage levels. This will have to be done on the basis of four criteria: general level of gross wages and their distribution, developments in labor productivity, growth rate of gross wages and purchasing power,
3. Greater involvement of the social partners in determining the minimum wage,
4. Establishment of a monitoring mechanism for all Member States, annual reports from Member States to the Commission, structured dialogue between all parties.

The it must also apply to any worker with an employment contract or relationship based on national law, on collective agreements in force or on the jurisprudence of the Court of Justice of the European Union and this, in order to avoid "atypical" workers, such as workers on digital platforms can be excluded.

According to the Commission European Union, the adoption of the proposal will lead to higher minimum wages in around half of the Member States and the increase in statutory minimum wages could be more than 20%, resulting in a 10% reduction in wage inequality and in-work poverty and a around 5% average reduction in the gender pay gap.

The the minimum wage will protect the categories most exposed to working poverty, therefore the low-wage sectors and precarious and atypical workers, in particular those of gig economy, that is i . and workers with short-term contracts.

Workers digital platforms will also be able to set up trade union representatives to conclude collective agreements and access social security protections.
Last but not least, Member States will have to ensure a constant balance between professional activity and private life, as well as tackle the gender pay gap, also guaranteeing access to quality and above all affordable childcare. (2)

The proposal European directive on the adequate minimum wage therefore bodes well.

the work remains the best way to combat poverty and it will be the responsibility of each Member State of the European Union to implement the plan proposed with the new directive in order to overcome inequalities and promote a more equitable, inclusive and equal labor market.

Elena Bosani

Note

(1) See https://www.europarl.europa.eu/italy/it/succede-al-pe/salario-minimo-come-rimedio-alla-disuguaglianza-e-alla-povert%C3%A0-lavorativa
(2) See Angela Lamboglia. What does the EU Parliament think of the proposed directive on the minimum wage. 11.2.21 - PHASES (https://www.fasi.biz/it/notizie/approfondimenti/22706-direttivo-salario-minimo-europeo.html

Elena Bosani

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Attorney at law in Milan and Frankfurt am Main. An expert in family, juvenile and criminal law, she is now enrolled in a university master's degree in food law

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