Ref. Ares(2022)76652 - 05/01/2022
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Sent: Tuesday, June 30, 2020 9:32 AM
To: KAUFFMANN Barbara (EMPL)
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Subject: Flash report, EESC hearing and study group discussion on MW initiative, 25 June
Flash report EESC hearing on “Decent minimum wages across Europe”, 25 June 2020
Participants: Nicolas Schmit,
(ETUC),
(Business Europe),
(Social Platform), Özlem Demirel (MEP, DE), Dennis Radtke (MEP DE), Agnes Jongerius (MEP, NL),
(Rapporteur, Employers group),
(Co-rapporteur, Workers group),
(Study group president)
Main conclusion of discussions
The
majority view of the participants was that there is
need for EU action on the issue of fair
minimum wages, and the current crisis highlighted even more this need. The
opposing view on this
comes from employers’ representatives who believe that the
timing is not right, as this action may
have negative repercussions at the economic level.
There is
general consensus on the need to
preserve the
systems that currently work, and
participants acknowledged the Commissioner’s reassurances. All participants mentioned the
imperative role that
social partners play in the wage setting process and the
importance of
collective bargaining. Its
promotion has been highlighted as one of the
main aspects that the
initiative should encompass. On the
legal instrument chosen,
workers representatives may be in
favour of a
directive, while
employers groups are
clearly against, supporting a softer approach, i.e.
recommendation monitored under the European Semester.
Main interventions points
Nicolas Schmit made a presentation whereby he highlighted the
timeliness of this initiative
especially as part of the
recovery plan, but also acknowledging its
sensitiveness. He went through
the content of the
second stage consultation documents, insisting on the
safeguarding of the
systems that
work.
(ETUC) explained that one of the main things ETUC will propose is a
framework
directive that will not set pay, but that will propose a
dual threshold below which pay cannot go
(60% of the median wage and 50% of the average wage). It will not say how much a MW should be or
what is an adequate MW.
(Business Europe) highlighted that the social dialogue culture should be further
promoted. When discussing the instrument chosen for the initiative, Business Europe is
clearly
against a directive stating that it goes against the Treaty. What they will be open to is a
Council
Recommendation that would be monitored under the
European Semester. He also mentioned the
importance of EU funds to strengthen the
capacity of
social partners and that this should become a
specific objective of the ESF+.
(Social Platform) stated that a
minimum threshold needs to be defined to at least 60%
of the national median wage, in a non-discriminatory way. Reference of basket of goods is also
important and the MW needs to guarantee that work pays. Social partners are and should remain
very important, civil society should also be consulted, especially because of special target groups.
The
Members of Parliament all
agreed on the
timeliness of this initiative, especially in the current
crisis situation where workers who kept our societies afloat, are usually the ones that would be at
the centre of this initiative.
Özlem Demirel (MEP for European United Left, DE and Rapporteur on
reducing inequalities with a special focus on in-work poverty) stated that the 60% poverty line should
be taken as a
threshold and that MW should not be lower than that, as this is the minimum to be
done for in-work poverty. Collective bargaining should be promoted as it is not working everywhere
as it should, as shown by coverage differences across the EU.
Dennis Radtke (MEP for European
People's Party, DE) argued that the solution is not a formula of the poverty line, but rather
coverage
of collective agreements, as fair minimum wages and wages more generally can only be reached
through collective bargaining.
Agnes Jongerius (MEP for Progressive Alliance of Socialists and
Democrats, NL) underlined the need to talk about the MW proposal but also about
wage growth and
precarious working conditions and
collective bargaining.
The
co-rapporteurs, as representatives of the workers and employers group, had mostly
diverging views. Both
agreed on the
importance of collective bargaining in wage setting. While the
representative of the workers groups supports a proper intervention instrument, the representative
of the employers group is proposing a much softer approach, i.e. exchange of best practices and
capacity building of social partners.
Study group on the EESC Opinion on Decent minimum wages across Europe
The study group discussed the EESC Opinion point by point, and the main issues of disagreement
remained the use of criteria for defining MW thresholds, or just proposing indicators and the legal
instrument to be proposed.