EU: Danish Parliament rejects EU minimum wage directive

While MEPs are due to vote this week on a resolution that requires the EU Member States to promote social dialogue between employers and employees when collective wage agreements cover fewer than 80% of employees, the Nordic countries are united in opposing the EU Directive. On 18 November, the Danish Parliament voted to support the government in its rejection of the text. “I can understand that other countries are concerned about what is going on on their labour markets with low wages where people can’t live a dignified life. “But we have found a better model in Denmark and it is worth protecting and it must not be destroyed by a common European directive,” said Social Democrat Minister Mattias Tesfaye. Although the EU Directive does not create a clear requirement to introduce a statutory minimum wage (c.f. article No. 12425), the authorities fear that they may be forced to do so as a result of litigation in the EU Court of Justice. In Denmark and Sweden, the minimum wage is currently negotiated at branch level, in a social model that even local trade unions support. According to media network Euractiv, during the European Parliament’s plenary session, parliamentarians from Denmark and Sweden will try to open the report for amendments, which could delay the EU Directive’s adoption process by several months. If adopted, the Parliament will then enter negotiations with the Council of the European Union to reach a common position on the final form of the future legislation.