Ref. Ares(2022)76652 - 05/01/2022
First phase consultation of Social Partners under Article 154 TFEU on a
possible action addressing the challenges related to fair minimum wages
Response Pearle*-Live Performance Europe
The European Commission invites social partners to a first stage consultation regarding a
possible EU action in order to achieve a political commitment made by the von der Leyen
Commission on social fairness. Reference is made to the European Pillar of Social Rights, where
the principle of right to fair wage is explicitly put forward, by underlining the fact that adequate
wages shall be ensured, referring to national practices and the role of social partners.
The consultation document describes four main challenges, including:
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Wage adequacy in relation to the wage distribution in a country and standard of living
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Wage coverage of statutory national minimum wage covered in the law
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Involvement of social partners in setting statutory minimum wages
-
National mechanisms guiding the adjustments of statutory minimum wages
The consultation document further describes existing EU laws and jurisprudence and presents
the EU added value of an EU action on minimum wage. An EU action is considered appropriate
with the aim to improve working conditions and creating a level playing field.
Social partners are invited to respond to three following questions:
I. Do you consider that the Commission has correctly and sufficiently identified the issues and
the possible areas for EU action?
II. Do you consider that EU action is needed to address the identified issues? If so, what should
be the scope of that action?
III. Would you consider initiating a dialogue under Article 155 TFEU on any of the issues
identified in this consultation?
Introduction
Pearle*-Live Performance Europe, which is the European employers federation representing
over 10 000 organisations in the public and private sector of the music, theatre, dance, circus,
and others in the live performance. The sector employs about 1,2 million workers.
Pearle* represents the employers in the European sectoral social dialogue committee ‘live
performance’.
1
Pearle*-Live Performance Europe (Performing Arts Employers Associations League Europe aisbl)
Square Sainctelette 19/6 – B-1000 Brussels
Phone +32-2-203.62.96 / e-mail xxxx@xxxxxx.xx / www.pearle.eu
Pearle* thanks the Commission for the invitation to respond to the social partner consultation
on this subject.
General approach of Pearle* to the subject of the consultation
1. Setting wages is initially and primarily the autonomy of social partners. Also, in the context
of a Europe-wide discussion on minimum wages, social partners have a key role in this
area. Collective bargaining on wages is essentially based on the principle of fair wages,
which includes minimum wages, and which takes into consideration the particularities of a
sector.
2. There is great variation and difference between sectors when setting wages. Those have
to do with the level of labour-intensity in a sector to make a product, the fact whether a
sector relies on labour that is almost exclusively is based in Europe itself, or whether a
sector relies on public support in order to undertake its business. This is the case for
instance for the live performance sector, where the labour supply is high, the activities are
‘made in Europe’ and where a large part of the sector relies directly or indirectly on
government support. Wage setting is also determined by various elements which form part
of collective agreements, including contributions to company/sectoral pension funds,
support for training, lunch vouchers, etcetera. Artists and performers also receive income
for authors’ and neighbouring rights.
3. Several countries provide for supporting mechanisms and specific provisions on lower taxes
or social contributions, so that in the event of low wage the less income is compensated
through other mechanisms. A higher wage might take away the access to reduced taxes
and other benefits and result on the contrary in a less beneficial situation. Therefore, a call
for a minimum wage cannot be isolated and should be considered in the full context of
support for low earners.
4. Sharing best practices and insights from academics with different backgrounds on how to
improve the situation for people who are poor is needed in order to better capture the
entire problem, and to evaluate if an action on wages is appropriate to tackle the problem.
5. The Live Performance sector is a sector where income levels can vary immensely: from
famous and top artists (usually working as self-employed) to a large proportion of people
who are engaged according to the payment levels agreed by social partners through
collective bargaining. As it concerns both a private and a public sector, in the last case
collective bargaining on wages is impacted by the level of budget foreseen for culture,
which in many countries across Europe is under pressure.
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Pearle*-Live Performance Europe (Performing Arts Employers Associations League Europe aisbl)
Square Sainctelette 19/6 – B-1000 Brussels
Phone +32-2-203.62.96 / e-mail xxxx@xxxxxx.xx / www.pearle.eu
Response to the questions
I.
Do you consider that the Commission has correctly and sufficiently
identified the issues and the possible areas for EU action?
The Commission seeks to guarantee the well-being of people and the social market
economy for which Europe stands. This overarching goal requires a holistic approach
encompassing all elements that can work towards achieving such goals, whilst at the same
time the answers are different from country to country and from sector to sector. Wages
are based on a good thriving economy and good thriving public finances. All conditions
and elements must be at place to generate well-being through income.
In a sector as the live performance, the motivation to work is extremely high and even
with no job offers available creative people will seek to process the artistic need for
expression by taking own initiatives regardless of the prospect of employment. This is a
quite different context compared to sectors where there is a high labour shortage and
where is there is pressure on the demand-side to be able to recruit people. Apart from
certain occupations or shortages of one or the other occupation in a particular country, in
general one may say that the sector has an oversupply on the labour market, not in the
least because of the high amount and in some countries an increase of students graduating
from music and arts schools or cultural management. The interplay between offer and
demand is a factor not to be ignored in this regard.
Since the financial crisis of 2008 which impacted several sectors as well as public finances
of Member States across Europe, including some countries which were put under financial
supervision and that were imposed strict rules as regards wage increase, also the live
performance sector underwent difficult years which has still not come to an end. Therefore,
it is essential to consider the state of economy, and in particular the state of public
finances, the measures and incentives related to taxes, public support and level of social
contributions, when discussing the aspect of wages.
In the view of Pearle*, it concerns a highly complex matter, which requires careful thought
when evaluating an initiative at a European level.
The Commission document also considers the involvement of social partners to be
insufficient where social partners are part of the process to adjust minimum wages. It also
mentions that a few Member States do not have criteria on guiding changes to minimum
wages. Earlier on in the paper, only once the negative effect of increased labour costs is
mentioned. However there can be other negative effects as well, such as the pressure on
public funds for unemployment schemes and other support schemes which exist for people
with low income.
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Pearle*-Live Performance Europe (Performing Arts Employers Associations League Europe aisbl)
Square Sainctelette 19/6 – B-1000 Brussels
Phone +32-2-203.62.96 / e-mail xxxx@xxxxxx.xx / www.pearle.eu
In chapter 4 reference is made to current EU acquis and instruments. It is argued that
wages are embedded in several EU directives, when addressing discrimination. The recent
European Pillar of Social Rights considers minimum wages as part of several instruments
to provide decent standard of living, whereas the Pillar of social rights also clearly identifies
the autonomy of social partners and national practices.
As mentioned above, well-being and combatting poverty must be part of an overall
strategy which requires a set of instruments ranging from tax incentives to social security,
public funding and public support. The essence of social partner negotiations relates to
wages and as a principle must respect each sector to manage those industrial relations as
they are always connected to the economic situation of a sector and its potential.
II.
Do you consider that EU action is needed to address the identified issues?
If so, what should be the scope of that action?
The level of income is only one aspect of an individual’s well-being. Within the framework
of income, wage is again one specific aspect, next to others such as social benefits,
reduced tax levels or social contributions, additional support, etcetera. In sectors where
fixed-term work is common, where people may have interrupted periods of employment,
changes to minimum wage are not the sole answer to combatting poverty. Given the fact
that minimum wages are already existing across Europe, we would consider for the EU’s
role to be of a technical dimension, providing economic analysis and technical
recommendations to Member States, such as in the context of the European Semester.
The EU can develop policy to encourage well-being by sharing best practices between
Member States, by conducting studies and encourage Member States to develop smart
policies to tackle poverty and hold a general debate. The EU can provide through the
European social fund targeted support for specific groups in society.
To conclude, in Pearle’s view it is unclear in which way an EU action on minimum wage
could support Member States to combat poverty and ensure well-being when aiming for a
social market economy, unless it concerns non-legislative action.
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Pearle*-Live Performance Europe (Performing Arts Employers Associations League Europe aisbl)
Square Sainctelette 19/6 – B-1000 Brussels
Phone +32-2-203.62.96 / e-mail xxxx@xxxxxx.xx / www.pearle.eu
III. Would you consider initiating a dialogue under Article 155 TFEU on any
of the issues identified in this consultation?
Pearle* would not consider initiating a social partner dialogue under Article 155 TFEU.
Final comment
It is been understood that the second stage consultation will be launched shortly after the
first stage consultation. Taken into consideration President von der Leyen’s promise to
come up with a legislative proposal on a fair minimum wage, given the complexity of the
matter thorough analysis is needed and the responses of social partners need to be
carefully taken into consideration before launching a second consultation.
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Pearle*-Live Performance Europe (Performing Arts Employers Associations League Europe aisbl)
Square Sainctelette 19/6 – B-1000 Brussels
Phone +32-2-203.62.96 / e-mail xxxx@xxxxxx.xx / www.pearle.eu