Towards a European Minimum Wage Policy? Fair Wages and Social Europe

Abstract

The notion of Social Europe is usually taken to entail the payment of fair wages, defined as at least a minimum sufficient for a decent standard of living. In all European countries there is some regulation of minimum wages, either by law or by collective agreements. However, the value of minimum wages in Europe differs significantly both in absolute level and relative to average or median national wages. Moreover, some national systems of wage regulation have proved ineffectual in preventing the growth of employment paying below the minimum. Against this background there is an ongoing debate on the possibility and desirability of a European minimum wage policy. This article gives an overview of national minimum wage regulation and discusses the opportunity for and resistance to the introduction of a coordinated minimum wage policy at European level.

What explains high unemployment among low-skilled workers? Evidence from 21 OECD countries

“…In the Scandinavian and German-speaking countries as well as Italy there is no legal minimum wage, but a close-knit web of collective agreements setting minimum wages for different occupations and sectors (Schulten, 2008). These wage floors should affect low-skilled unemployment in the same way as legal minimum wages: a high coverage rate of collective agreements moves wage formation away from a market solution and should -in a perfectly competitive labour market -threaten low-skilled workers' employment prospects (Siebert, 1997).…”

Does the Prosperity Level of States Affect Participation in Trade Unions? A Quantitative Research

“…One tool to achieve these objectives could be the introduction of a minimum wage through which would achieve growth and alleviate contrasts. However according to Gokhan-Kocer and Visser (2009) European Commission President Jacques Delors, to PoulNyrup Rasmussen and many others (Schulten, 2008). At least at EU level there is a lack of transnational cooperation for the implementation of a minimum level in European wages.…”

The issue of statutory minimum wages: Views among Nordic trade unions

“…If there are collectively agreed minimum pay levels it is of course difficult for employers to go below them, but without such arrangements legislation appears to fill an important function. The introduction of statutory limits to wage dumping can also be helpful in struggles against decreasing inequalities in society (Schulten, 2008;Schulten and Watt, 2007;Vande Keybus, 2012). From a Nordic perspective, wage dumping has very much to do with the rules in the Posting of Workers Directive, that is, with the relationship between posted workers' pay and the standards in the host country.…”

“…One reason for minimum wage regulations by the state is hence to fight such a development by ensuring that people get a 'living wage' (Schulten, 2008;Schulten et al, 2015: 339-341). This requires that the bottom level is set sufficiently high, but the statutory minimum wages in many European countries are so low that they do not prevent income poverty (Schulten, 2014: 13).…”

“…In other parts of Europe many unions do not at all look at legislation as an evil but as an indispensable arrangement. A principal argument is that state regulation is required to provide protection for all workers (Furåker and Lovén Seldén, 2013;Schulten, 2008;Schulten and Watt, 2007). Legislation might secure that all workers -and not only the organized -are covered.…”