Proposal for a directive on adequate minimum wages

Proposal for a directive on adequate minimum wages within the European Union Belgian system and European perspectives Ondertitel Seminar for Visegrád Trade Unions 25 November 2020

1) Focus on the Belgian system

Belgian collective bargaining system • 1) Cross-industry level • Cross-industry agreement reached within the Group of 10 for a two-year period • National Labour Council + Central Economic Council • 2) Sectoral level: joint committees • 3) Company level

Belgian collective bargaining system Source : Collective bargaining in Europe : towards an endgame, ETUI

How the minimum wage is determined in Belgium • Levels of setting the minimum wage: • Cross-industry (national minimum wage); • Sectoral (if more favourable than the national minimum wage) applies to the majority of workers; • Company (if more favourable than the national minimum wage and the sectoral minimum wage) • Limitation: • Wage norm

Belgian national minimum wage • Worker aged 18 and over: 1625. 72 EUR gross • Worker aged at least 19 having worked at least 6 months in the company: 1668. 86 EUR gross • Worker aged 20 and over with at least 1 year worked in the company: 1688. 03 EUR gross • Exclusions; • Revision: • Wage indexation mechanism

2) European perspectives

Proportion of low wage earners who experience difficulties at the end of the month, 2015 Source: European Commission

Minimum Wage as % of average and median wage, 2019 • Source: ETUC

Why do we support EU intervention in this area ? • Wage divergencies within the EU have a negative impact on internal demand serve to widen inequality and exacerbate unfair competition damages the potential of the internal market to achieve sustainable growth; • Upwards wage convergence is urgently needed ; the economies of Central and Eastern Europe need it; • Instrument to tackle social dumping;

Collective bargaining coverage within the EU, 2016 -2018 • Source: ETUC

Coverage and promotion of collective bargaining • The best instrument to improve wages as well as working conditions and tackle inequalities is collective bargaining; • The European directive must allow for a real increase in the level of coverage for workers in the Member States, which is particularly necessary within the Visegrád group; • Assurance that where the right to collective bargaining is violated increase of the minimum wage by legal means.

Some necessary developments for the proposed directive • Inclusion of the dual decency threshold within the directive; • Minimum coverage of 70% of workers through national action plans as well as real protection for the right to collective bargaining as well as other trade union rights; • Respect for applicable wages and the right to collective bargaining by economic operators as a condition for the granting of public procurement and European funds; • End to certain categories of workers being excluded from the legal minimum wage (+ ban on deductions, withholding…); • Full involvement of national and European social partners

Seminar for Visegrád Trade Unions Thank you for your attention mathieu. baudour@acv-csc. be