Wage developments, collective bargaining and minimum wages in Europe - 中欧社会论坛 - China Europa Forum

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

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