The EU27 are now ready to negotiate with the European Parliament on the draft directive on pay transparency (see EUROPE 12664/1): EU Ministers for Employment and Social Affairs on Monday 6 December backed the final compromise proposal (‘general approach’) drawn up by the Slovenian Presidency on this dossier (see EUROPE 12842/1).
After nine months of negotiations, reaching an approach on a draft directive to fight gender pay inequalities is “a strong political signal”, noted the Portuguese Secretary of State for Citizenship and Equality, Rosa Monteiro.
Several delegations shared Ms Monteiro’s enthusiasm. A total of 22 supported the text.
Lowering the 250 employee threshold
However, some of these delegations expressed reservations. Some of them would have liked a “more ambitious” text, particularly on the flagship measure of the future directive, i.e. the collection of information on the pay gap between male and female workers.
As suggested by the Commission, the EU27 agreed that this measure should apply on an annual basis to all companies with 250 or more employees. But this threshold is not satisfactory for all delegations.
Italy, for example, would have liked to see it lowered to 50 employees and Spain to 25. “It would have been desirable for the EU Council to be more ambitious on this point, for this measure to apply to more companies” was also the reaction of the Luxembourg minister, Taina Bofferdin, calling on the future French Presidency to “raise the ambition” of the text.
Her Finnish counterpart, Tuula Haatainen, also expressed concern that with a 250-employee threshold, the forthcoming transparency measures would not in fact apply to “many European companies”.
This position is also the one defended, at this stage, by the European Parliament (see EUROPE 12802/18). Asked after the meeting whether the inter-institutional negotiations might lead to a lowering of the threshold - at the instigation of MEPs - Slovenian Minister Janez Cigler Kralj suggested that it would in any case be difficult for the EU Council to be flexible.
Five Member States abstain
In fact, for other delegations, such as the Netherlands, the threshold of 250 employees is already a “red line”: the minimum acceptable to avoid the new regulation putting an excessive administrative burden on small and medium-sized enterprises (SMEs).
The prospect of an excessive “administrative burden” is also a concern for Malta, Lithuania and Denmark. The latter countries have, however, given their support to the text so that the legislative process can move forward.
Slovakia, Hungary, Austria and Sweden were not so accommodating. The four delegations abstained, fearing, among other things, an “excessive burden” on SMEs.
Slovakia also expressed concern about the provisions on comparators to be used to prove alleged wage discrimination (Article 16a).
Hungary, on the other hand, indicated that issues such as the respect of the principle of proportionality and the competence of Member States should have been further developed.
On the Austrian side, concerns have been expressed about compliance with the Data Protection Regulation. Finally, Sweden would have “liked to explore certain parts further”, before obtaining more guarantees regarding the respect of “the autonomy of each market”.
Finally, it should be noted that Germany was forced to abstain due to the lack of a government in place.
To see the approach taken: bit.ly/3lwNmJD (Original version in French by Agathe Cherki)