MEMBERS of the European Parliament today voted in favor of the Directive on adequate minimum wages, which should enable workers in EU member states to meet basic living needs.

Under the adopted directive, agreed with the Council of the EU in June, setting minimum wages remains a national competence, but member states will have to guarantee that they allow workers a decent living, taking into account the cost of living and wage levels.

The Council is expected to formally approve the agreement in September, after which member states will have two years to implement the Directive.

It applies to all workers who have a contract

To assess the adequacy of statutory minimum wages, member states may compile a basket of goods and services at real prices or use values of 60 percent of the gross median wage and 50 percent of the gross average wage, the European Parliament states.

The new directive will apply to all workers in the EU who have an employment contract or employment relationship. Member states where the minimum wage is already protected exclusively by collective agreements will not be obliged to introduce new rules.

Member states in which less than 80 percent of workers are covered by collective agreements will have to draw up, in cooperation with the social partners, an action plan to increase their coverage. In the event of a breach of the rules, legal protection is ensured for workers, their representatives, and trade union members.

“One in five workers has a minimum wage”

The Directive on adequate minimum wages was adopted in the European Parliament with 505 votes in favor, 92 against, and 44 abstentions.

“This is a new chapter in the history of European social policy. (…) I think that with this we will create an instrument that will be helpful and that will strengthen the spirit of social partnership, which is the guiding idea running through the report,” said rapporteur Dennis Radtke (EPP) from the ranks of the People’s Party during the debate at the plenary session in Strasbourg held on Tuesday.

“For more and more people, work does not necessarily mean that they will not live in poverty. When the energy bill takes away most of the wage, when it is increasingly difficult to pay the rent and at the end of the month you do not have money for food, this has gone much too far. This is arriving at the right time,” said co-rapporteur Agnes Jongerius from the ranks of the Social Democrats (S&D).

Jongerius said that the rights of vulnerable social groups should be fought for. “Almost one in five workers has a minimum wage, often women, migrants, young people. We must advocate for them to get more,” she said.

“We must fight against the poverty of all those who work”

The Directive emphasizes that adequate wages must be ensured for fair and resilient economies and societies, but many workers in the EU are currently not protected by adequate minimum wages.

Commissioner for Jobs and Social Rights Nicolas Schmit assessed that the adoption of the Directive is “a key step toward implementing the European Pillar of Social Rights”.

“Essential workers are on low wages that are sometimes not even minimum. That is why this achievement is timely. We must fight against the poverty of all those who work. We must create decent living conditions and fair economies and societies in accordance with principle 6 of the European Pillar of Social Rights,” he said.

The European Parliament, the Council, and the Commission proclaimed the European Pillar of Social Rights in November 2017, whose principle 6 calls for ensuring adequate minimum wages and transparent and predictable wage-setting. Protection in the form of a minimum wage also contributes to gender equality because more women than men earn wages that are minimum or close to it.

“60% of women in the EU receive a minimum wage”

Lina Galvez Munoz from the Social Democrats group said that “this is about social justice, especially for women”. “60 percent of women in the European Union receive a minimum wage even though they make up 46 percent of the workforce. We must reduce pay gaps and fight inequality. This directive is especially important in the care sector, where 61 percent of women work. It is a step toward social justice and greater dignity,” she said.

“We managed to find a solution in order to lay the foundation for minimum wages in the European Union. 25 million Europeans will see their wages increase by 20 percent. These are concrete advances,” said Mounir Satouri from the ranks of the Greens. “Citizens who go to work every day and make their contribution to the European Union must be able to live with dignity,” said Monica Semedo from Renew.

Pedro Marques (S&D) warned that “many member states have minimum wages, but measures still need to be taken to ensure a decent life for workers”.

Elzbieta Rafalska (ECR) agrees with him, saying that Poland took care of its own citizens itself. “Member states must themselves take care of their own socio-economic situation. In Poland, we increased the minimum wage and within 5 years there was a one hundred percent increase in the net amount. This is the result of socially sensitive policies. Without obligations at the EU level, we moved to protect workers. Worker poverty is unacceptable,” says Rafalska.

Source: Index.hr