Wage developments, collective bargaining and minimum wages in Europe
Authors: GALGOCZI Bela
Context of wage developments in Europe
At the time of increased capital mobility and globalisation, when cca. 1 billion workers got integrated in the world economy (China, India, eastern Europe) – the previous balance between labour and capital has shifted
Wage moderation is characteristic for most EU15 countries for the last 10 years
Wage shares in GDP are falling
Wage differentials are growing
The danger of a downward spiral is real
Crucial role of the MW in crisis – in safeguarding purchasing power and to avoid social exclusion
Conclusion
The importance of the minimum wage is clearly increasing across Europe, even in countries, where it was not a priority before
Experiences in the UK, Ireland and Portugal are positive, not negative effect on employment had been observed
Germany has a crucial debate on the issue and a certain kind of a national MW will most probably be introduced soon
Minimum wage targets – as measures in % of average wage or GNP/capita – are also discussed
It is a difficult debate even trade unions have diverse views (Denmark, Italy have serious reservations) – fears that TU influence would be undermined or that a low European target level could be used to get national standards under pressure