EU: the CJEC to rule on the possibility to subordinate the performance of a public works contract to the respect of the minimum wage remuneration prescribed by the workplace collective agreement

In its conclusions rendered on September 20, the Advocate General Bot offered the Court to retain that a national legislation which subordinates the award and the performance of a public works contract to the respect of the minimum wage set by a local collective agrement which has not been declared universally applicable is not contrary to European law. (Ref. 070784)
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The German law on procurement imposes on tenderers to pay the posted workers – when performing a public works contract – at least the remuneration planned in the collective agreement applicable where the contract is being executed. Their subcontractors must also respect those conditions, under penalty of sanctions which can go as far as the avoidance of the contract. In the case brought before the Court, a German company commissioned to a Polish subcontractor who posted workers to Germany, who

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