EU: MEPs support EU minimum wage directive with strong emphasis on collective bargaining

On 11 November, MEPs on the Employment and Social Affairs Committee voted in favour of a draft directive for ‘fair minimum wages’. While the Member States were unable to reach an agreement on the text presented by the European Commission at the end of 2020, particularly in view of the opposition of the six countries (out of 27) that do not yet have a minimum wage, the MEPs have adopted a version that is close to the initial text. With it EU Member States should impose a legal minimum or mechanisms to promote social dialogue between employers and employees when collective wage agreements cover less than 80% of employees. The Commission had set this threshold at only 70% (c.f. article No. 12199). On the other hand and in contrast with what trade union bodies are seeking, MEPs are not in favour of setting a minimum wage amount or percentage of an average or median wage (c.f. article No. 12425). In addition, the draft introduces a minimum wage requirement for ‘false self-employed workers’, i.e. platform workers, and would protect those using trade unions with regard to the minimum wage. The draft also intends that employees, in the event of a complaint, would have a right to compensation and could not be subject to retaliation by their employer. The text will be debated in plenary session between 22 and 25 November.