The President of the European Commission, Ursula von der Leyen, in her first State of the Union address to the European Parliament on Wednesday 16 September, once again emphasised that an initiative being prepared to guarantee a decent minimum wage at a national level would be implemented in accordance with national norms and the prerogatives of the social partners.
The President, a former German Federal Minister for Social Affairs, did not hesitate to denounce the “wage dumping” that is prevalent in the European Union and which “penalises entrepreneurs who pay a decent wage, distorting fair competition in the single market”. In this context, Mrs von der Leyen reminded MEPs of the initiative to introduce a decent minimum wage throughout the EU.
Knowing how politically sensitive the subject is and how narrow the legal path for the EU to act is, the Commissioner gave assurances that she is “a strong supporter” of collective bargaining and, in this context, said that the European Commission's proposal “will fully respect national competences and traditions”. She also said that “the minimum wage works – and it's time for work to be paid”.
Observers, including social partners, are waiting for the European Commission to reach a turning point. The trade unions hope for a directive, where the employers prefer EU Council recommendations (see EUROPE 12555/28), which BusinessEurope did not hesitate to include in a press release reacting to the announcements of the European Commission.
For its part, the European Trade Union Confederation (ETUC) welcomed the President's words, but is now waiting for a “concrete” plan. “The President of the Commission has declared that she is a ‘fervent defender’ of collective bargaining”, said ETUC General Secretary Luca Visentini. “But we have to wait for concrete action plans, which will help the 76 million workers currently excluded from collective bargaining to also obtain truly fair wages”.
Mr Visentini said he hoped that the European Commission would come back with proposals that would guarantee social security for everyone and would implement the European pillar of social rights (an implementation action plan is expected in 2021 — see EUROPE 12403/6).
The European Commission is due to present its initiative on a European minimum wage on 28 October (see EUROPE 12556/31), although it seems as if this date could still change between now and then.
Read the State of the Union speech: https://bit.ly/3iBviKK (Original version in French by Pascal Hansens)