We all want people to have higher wages. Especially those with low incomes. But this is not done by setting an administrative salary from Bratislava for a waitress from Utekáč.
The briefing reviews the newly passed directive on adequate minimum wages in the EU and investigates its potential negative impacts on traditional collective bargaining agreements and low-income groups.
On 4 October 2022, the European Council adopted a directive to push EU member states to streamline the rules by which they set the national minimum wage.
The European Commission has published a study on working conditions of platform workers. The report identifies key challenges related to platform work, such as employment status, autonomy, and information available to the workers about their working conditions, non-discrimination and dispute resolution.
This position paper is a response to the European Commission’s second phase consultation with social partners. The EC’s initiative has a general objective of ensuring that “all workers in the EU are protected by fair minimum wages, allowing for a decent living wherever they work.”
Raising mandatory minimum wage might seem to be a simple policy that serves to increase wages for low-income earners. Politicians use this policy with good intentions to reduce poverty and inequality. Yet, it has serious drawbacks and creates unintended consequences.