a european minimum wage policy - back on the agenda · european minimum wage policy torsten müller...
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A European
minimum wage policy -
back on the agenda
EPSU
Collective Bargaining Conference 2015
Brussels, 13-14 January 2015
Torsten Müller (ETUI) & Thorsten Schulten (WSI)
European minimum wage policy
Back on the agenda
14 01 2015 Torsten Müller & Thorsten Schulten
„As a son of a steelworker as
well as later on the Prime minister
of Luxembourg I have always
supported an equitable minimum
wage. (…). That every work should
be adequately remunerated is for me part of my
fundamental Christian-social conviction. I see with
satisfaction that today the majority of the 28 EU
member states has national minimum wages. As
president of the European Commission I will
advocate that all member states introduce a
minimum wage adjusted to national collective
bargaining traditions and economic conditions.”
Key messages for EP election 2014
14 01 2015 Torsten Müller & Thorsten Schulten 3
2008: „Calls on the Council to agree an EU target for
minimum wages (statutory, collective agreements at
national, regional or sectoral level) to provide for
remuneration of at least 60% of the relevant (national,
sectoral, etc.) average wage and, further, to agree a
timetable for achieving that target in all Member States.“
European Parliament on
European Minimum Wage Policy
.“
2007: „Firmly believes that a decent living
minimum wage should be established at
Member State level in cooperation with the
social partners … but recognises that in
many Member States the minimum wage is
set very low or at below subsistence level.”
Minimum Wage Regimes
in Europe
Torsten Müller & Thorsten Schulten
14 01 2015
Law Collective
Agreement
Universal Regimes:
Common national
minimum wage
as an universalistic
wage floor
Western Europe:
FR, LU, NL,
IE, UK, DE
Southern Europe:
GR, MT, ES, PT
Eastern Europe:
BG, CR, CZ, HU,
LV, RO, SI, TR,
Western Europe
BE
Eastern Europe:
EE, LT,
(PL, SK)
Sectoral Regimes:
Minimum wages
only for certain
sectors or occupations
CY
Northern Europe:
DK, FI, NO, SE
Western Europa:
AT, CH, IT
Collective Bargaining Coverage
and National Minimum Wages (2009-2012)*
97 96
92 92 91 90 85 85 84
74 73
65
58 58 55
52 52
42 41
35 34 32 31 29 25
20 20 18 13 12
0
20
40
60
80
100
AT BE SI FR SE FI DK IT NL NO ES EL DE LU MT CH CY IE CZ SK HU PT UK PL EE LV RO BG US LT
Source: ICTWSS Database (Version 4.0), national Sources * most current data
Universal Minimum Wage Regimes (National Minimum Wage) Sectoral Minimum Wage Regimes (No National Minimum Wage)
Torsten Müller & Thorsten Schulten 14 01 2015
National Minimum Wages in Europe (per hour, in Euro, January 2015)
14 01 2015 Torsten Müller & Thorsten Schulten
National Minimum Wages in Europe (per hour, in PPS, January 2015)
14 01 2015 Torsten Müller & Thorsten Schulten
Relative Level of Minimum Wages Minimum wage in % of median wage, 2013
Torsten Müller & Thorsten Schulten 8 14 01 2015
61
61
56
54
52
50
50
50
50
48
48
47
46
45
41
41
38
36
0 10 20 30 40 50 60 70
FR
SI
PT
HU
LT
BE
DE*
PL
RO
LV
IE
NL
SK
EL
ES
LU
EE
CZ
* On the basis of a fictive minimum wage of
8.50 Euro per hour;
Source: OECD, Bundesagentur für Arbeit
Nordic Countries:
60%-70%
Minimum Wages
in Europe
Torsten Müller & Thorsten Schulten 14 01 2015
All minimum wages are below
the official low-wage threshold
(66% of median wage)
Many minimum wages are even
below the poverty threshold
(50% of median wage)
Most minimum wages in Europe
are set at a rather low level
Relative Level of Minimum Wages Minimum wage in % of median wage, 2013
Torsten Müller & Thorsten Schulten 10 14 01 2015
61
61
56
54
52
50
50
50
50
48
48
47
46
45
41
41
38
36
0 10 20 30 40 50 60 70
FR
SI
PT
HU
LT
BE
DE*
PL
RO
LV
IE
NL
SK
EL
ES
LU
EE
CZ
Poverty
threshold
50%
Low-pay
threshold
66.67%
Reference points for a
European minimum wage policy
Torsten Müller & Thorsten Schulten 14 01 2015
Fair or decent wage
European Social Charter Council of Europe
At least 60% of the average net wage
UK Living wage concept based on
costs of a basket of goods and services needed
to maintain a safe and decent standard of living
enabling the individual to participate in social
and cultural life
Consideration of income distribution
60 per cent of the median wage
14 01 2015 Torsten Müller & Thorsten Schulten 12 12
Council of Europe:
European Social Charter 1961
“The right to a fair remuneration … the right of
workers to a remuneration such as will give
them and their families a decent standard of
living.“ (Part I, Article 4)
Normative Foundations for the
Determination of Minimum Wages
Torsten Müller & Thorsten Schulten
UK Living Wage Approach
14 01 2015
London Living Wage: £ 9.15
NMW = £ 6.50; 41% higher
Living Wages UK: £ 7.85
21% higher than NMW
approx. 60% of
national Median
14 01 2015 Torsten Müller & Thorsten Schulten 14 14
Minimum wage as percentage of a low median
wage is still a low wage
What happens when the wage floor collapses?
Can employers use a European minimum wage
standard to bring down collectively agreed
wages?
Do European politicians get competences in
the setting of minimum wages?
Limits and pitfalls of a
European minimum wage approach
14 01 2015 Torsten Müller & Thorsten Schulten 15 15
EPSU Policy Document
Tackling low pay (2006):
“Where statutory minimum wage rates are already in
place the aim would be to consider a campaign for
increases to bring the rate up to 60% of national
median earnings in each country. In terms of
collectively agreed minimum rates in the public
services, the target set would be higher. The
campaign should also focus on extending the
coverage of collective agreements.”
.
Implementation of a
European minimum wage policy
Workers with a wage below
60% of national median wage (2010)
Torsten Müller & Thorsten Schulten
About 28 Mio. Workers
might profit from a
European Minimum Wage Policy !!!
14 01 2015
Source: Eurofound 2014
24 24
22
19 19 18
17 16 16 16 16
15
13 13 13 13 12 12
11 11 10 10 10
8 8 8 7 7
0
5
10
15
20
25
DE LT LV EE UK IE LU CY PL RO EU AT ES MT NL SI BG HU CZ GR BE DK IT FR PT SK FI SE
20.04.2012
Minimum wage is a
political wage !!!
Dr. Thorsten Schulten
WSI Minimum Wage Database
Torsten Müller & Thorsten Schulten
Current Minimum
Wage Data
from 31
Countries!
http://www.boeckler.de/wsi-tarifarchiv_44064.htm
14 01 2015
Available in
English!
14 01 2015 Torsten Müller & Thorsten Schulten
Thank you very much for your attention!!!
Dr. Torsten Müller Dr. Thorsten Schulten
ETUI WSI
Bld. du Roi Albert II, 5 Hans-Böckler-Straße 39
1210 Brussels 40476 Düsseldorf
Belgium Germany