The MEPs, as well as experts and social partners, discussed the use of an “adequate” level to determine a minimum wage during an exchange on the directive in the presence of the Commissioner for Jobs and Social Rights, Nicolas Schmit, on Thursday 4 March.
Esther Lynch from the European Trade Union Confederation, Véronique Willems from SMEunited, and many MEPs called for clarification of the European Commission’s proposal (see EUROPE 12591/8). Several people and organisations have taken a stand against the criterion of productivity developments as a basis for defining the appropriate level of wages.
According to Ms Lynch, a minimum threshold should be set, to ensure visibility, regardless of the calculation method chosen. For Thorsten Schulte, a researcher at the Wirtschafts-und Sozialwissenschaftliches Institut (WSI) of the Hans Böckler Foundation, a legal minimum wage of 60% of the median wage or 50% of the average wage is necessary. Such a measure would benefit 25 million workers, he estimated.
But, according to Ms Willems, things are much more complex: a higher minimum wage can certainly stimulate demand, but it can also have an impact on the “cost of labour” and with it the competitiveness of SMEs.
In connection with this debate, many have questioned the possibility of applying variations in statutory minimum wage rates or deductions from pay. Ms Lynch believes that the minimum wage should be applied without any salary adjustments. Agnes Jongerius (S&D, the Netherlands), co-rapporteur of the text, said she was against, citing the case of young people who experience variations due to their age.
Legal basis
While the Council of the European Union is still awaiting a legal opinion from its services on the question of the legal basis of the directive (see EUROPE 12600/28), the opinions of MEPs and experts diverge on the subject, with some preferring a recommendation (SMEunited and right-wing MEPs).
Sacha Garben, from the College of Europe, explained that one way to get around the limits set by Article 153 of the TFEU (which excludes any direct action on remuneration) would be to resort to Article 175 of the TFEU, which aims at strengthening the economic, social and territorial cohesion of the EU. She also mentioned Article 352 of the TFEU, which gives the possibility to act in areas not provided for in the Treaties, but which require unanimity in the Council of the EU.
Not convinced by the latter’s proposal, the competent European Commissioner, Mr Schmit, insisted on the importance of respecting the principle of subsidiarity. But, in his view, without a recommendation, it will be difficult to achieve the desired objectives.
With regard to the setting of the minimum wage threshold, the Commissioner indicated that it is stated in the body of the legislation (Article 5) that Member States must use indicative reference values at international level. The recitals refer, as a reminder, to the Kaitz index, which compares the minimum wage to the median or average wage. (Original version in French by Pascal Hansens)