[ParlTrack]

Proposal for a directive
Title 1

Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on recommended adequate minimum wages in the European Union

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Recital 1

(1) Pursuant to Article 3 of the Treaty on European Union, the aims of the Union are, inter alia, to promote the well- being of its peoples and to work for the sustainable development of Europe based on a highly competitive social market economy.deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Recital 1 a (new)

(1 a) Nothing in this directive should be interpreted in any way to be an obligation for Member States like Sweden that has a labour market model based primarily on collective bargaining to impose minimum wages or be subject to any new provisions.

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Recital 4

(4) Chapter II of the European Pillar of Social Rights, proclaimed at Gothenburg on 17 November 2017, establishes a set of principles to serve as a guide towards ensuring fair working conditions. Principle No 6 of the European Pillar of Social Rights reaffirms the workers’ right to fair wages that provide for a decent standard of living. It also provides that adequate minimum wages shall be ensured, in a way that provides for the satisfaction of the needs of the worker and his/her family in the light of national economic and social conditions, whilst safeguarding access to employment and incentives to seek work. Furthermore, it recalls that in- work poverty shall be prevented and that all wages shall be set in a transparent and predictable way and respecting the autonomy of the social partners.deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Recital 5

(5) Guideline 5 of Council Decision 2020/ 1512/EU on guidelines for the employment policies of the Member States37 calls on Member States to ensure an effective involvement of social partners in wage-setting, providing for fair wages that enable a decent standard of living and allowing for an adequate responsiveness of wages to productivity developments, with a view to upward convergence. The Guideline also calls on Member States to promote social dialogue and collective bargaining on wage setting. It also calls on Member States and the social partners to ensure that all workers have adequate and fair wages by benefitting from collective agreements or adequate statutory minimum wages, and taking into account their impact on competitiveness, job creation and in-work poverty. The Annual Sustainable Growth Strategy 202138 states that Member States should adopt measures to ensure fair working conditions. In addition, the Annual Sustainable Growth Strategy 202039 recalled that in the context of growing social divides, it is important to ensure that each worker earns an adequate wage. Several Country Specific Recommendations have also been issued to some Member States in the field of minimum wages. However, individual countries may be little inclined to improve their minimum wage settings because of the perception that this could negatively affect their external cost competitiveness. __________________ 37Council Decision 2020/1512/EU of 13 October 2020 on guidelines for the employment policies of the Member States (OJ L 344, 19.10.2020, p. 22–28). 38 Commission Communication COM(2020) 575 final. 39 Commission Communication COM(2019) 650 final.deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Recital 6

(6) Better working and living conditions, including through adequate minimum wages, benefit both workers and businesses in the Union and are a prerequisite for achieving inclusive and sustainable growth. Addressing large differences in the coverage and adequacy of minimum wage protection contribuare best achieved through every Member State’s to improving the fairness of the EU labour market and promote economic, social progress and upward convergence. Competition in the Single Market should be based on high social standards, innovation and productivity improvements ensuring a level playing fieldown labour market model and national competence.

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Recital 7

(7) When set at adequate levels whether by statutory minimum wages or collective bargaining, minimum wages protect the income of disadvantaged workers, help ensure a decent living, and limit the fall in income during bad times, as recognised in Convention 131 of the International Labour Organisation on the establishment of a system of minimum wage fixing. Minimum wages contribute to sustaining domestic demand, strengthen incentives to work, reduce wage inequalities and in- work poverty.

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Recital 11

(11) Minimum wage protection set out by collective agreements in low-paid occupations is adequate in most cases; statutory minimum wages are low compared to other wages in the economy in several Member States. In 2018, the statutory minimum wage did not provide sufficient income for a single minimum- wage earner to reach the at-risk-of-poverty threshold in nine Member States. In addition, the use of reduced minimum wage rates (variations) and deductions from statutory minimum wages negatively affect their adequacy. Legislation from the EU therefore risks lowering the wages in some occupations especially in those Member States with minimum wage protection set out by collective agreements.

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Recital 12

(12) Not all workers in the Union are protected by minimum wages. In some Member States some workers, even though they are covered, receive in practice a remuneration below the statutory minimum wage due to the non-respect of existing rules which drives down wages for all. In particular, such non-compliance has been found to affect notably women, young workers, people with disabilities and agricultural workers. ~~In Member States where minimum wage protection is provided only through collective agreements, the share of workers not covered is estimated to vary from 2% to 55% of all workers.~~

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Recital 13

(13) ~~While s~~Strong collective bargaining at sector or cross-industry level contributes to ensuring adequate minimum wage protection, traditional collective bargaining structures have been eproding during the last decades, in part due to structural shifts in the economy towards less unionised sectors and to the decline in trade union membership related to the increase of atypical and new forms of workven to be successful in some Member States.

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Recital 16

(16) In full respect of Article 153(5) of the Treaty on the Functioning of the European Union, this Directive neither aims to harmonise the level of minimum wages across the Union nor to establish an uniform mechanism for setting minimum wages. It does not interfere with the freedom of Member States to set statutory minimum wages or promote access to minimum wage protection provided by collective agreements, according to the traditions and specificities of each country and in full respect of national competences and social partners’ contractual freedom. This Directive does not impose an obligation on the Member States where minimum wage protection is ensured either exclusively or in any way via collective agreements to introduce a statutory minimum wage nor to make the collective agreements universally applicable. Also, this Directive does not establish the level of pay, which falls within the contractual freedom of the social partners at national level and within the relevant competence of Member States.

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Recital 16 a (new)

(16 a) This Directive should not apply to the Kingdom of Sweden in any of its provisions.

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Recital 19

(19) In a context of declining collective bargaining coverage, it is essential that the Member States promote collective bargaining to enhance workers’ access to minimum wage protection provided by collective agreements. Member States with a high collective bargaining coverage tend to have a low share of low-wage workers and high minimum wages. Member States with a small share of low wage earners have a collective bargaining coverage rate above 70%. Similarly, the majority of the Member States with high levels of minimum wages relative to the median wage have a collective bargaining coverage above 70%. While all Member States should be encouraged to promote collective bargaining, those who do not reach this level of coverage should, in consultation and/or agreement with the social partners, provide for or, where it already exists, strengthen a framework of facilitative procedures and institutional arrangements enabling the conditions for collective bargaining. Such framework should be established by law or by tripartite agreement..

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Recital 21

(21) Minimum wages are considered adequate if they are fair in relation to the wage distribution in the country and if they provide a decent standard of living. The adequacy of statutory minimum wages is determined in view of the national socio-economic conditions, including employment growth, competitiveness as well as regional and sectoral developments. Their adequacy should be assessed at least in relation to their purchasing power, to the productivity developments and to their relation to the gross wage levels, distribution and growth. The use of indicators commonly used at international level, such as 60% of the gross median wage and 50% of the gross average wage, can help guide the assessment of minimum wage adequacy in relation to the gross level of wages.deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Recital 28

(28) The reforms and measures adopted by the Member States to promote adequate minimum wage protection of workers, while being steps in the right direction, have not been comprehensive and systematic. Moreover, individual countries may be little inclined to improve the adequacy and coverage of minimum wages because of the perception that this could negatively affect their external cost competitiveness. Since the objectives of this Directive cannot be sufficiently achieved by the Member States, but can rather, by reason of their scale and effects, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on the European Union. In accordance with the principle of proportionality, as set out in that Article, this Directive does not go beyond what is necessary in order to achieve those objectives.deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 1 – paragraph 3

3. Nothing in this Directive shall be construed as imposing an obligation on the Member States where wage setting is ensured either exclusively or in any way via collective agreements to introduce a statutory minimum wage nor to make the collective agreements universally applicable.

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 4 – paragraph 1 – introductory part

1. With the aim to increase the collective bargaining coverage Member States ~~shall~~can take, in consultation with the social partners, at least the following measures:

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 4 – paragraph 2

2. Member States where collective bargaining coverage is less than 70% of the workers defined within the meaning of Article 2 shall in addition provide for a framework of enabling conditions for collective bargaining, either by law after consultation of the social partners or by agreement with them, and shall establish an action plan to promote collective bargaining. The action plan shall be made public and shall be notified to the European Commission.deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 5

1. minimum wages shall take the necessary measures to ensure that the setting and updating of statutory minimum wages are guided by criteria set to promote adequacy with the aim to achieve decent working and living conditions, social cohesion and upward convergence. Member States shall define those criteria in accordance with their national practices, either in relevant national legislation, in decisions of the competent bodies or in tripartite agreements. The criteria shall be defined in a stable and clear way. 2. The national criteria referred to in paragraph 1 shall include at least the following elements: (a) minimum wages, taking into account the cost of living and the contribution of taxes and social benefits; (b) the general level of gross wages and their distribution; (c) the growth rate of gross wages; (d) labour productivity developments. 3. reference values to guide their assessment of adequacy of statutory minimum wages in relation to the general level of gross wages, such as those commonly used at international level. 4. Member States shall take the necessary measures to ensure the regular and timely updates of statutory minimum wages in order to preserve their adequacy. 5. consultative bodies to advise the competent authorities on issues related to statutory minimum wages.Article 5 deleted Adequacy Member States with statutory the purchasing power of statutory Member States shall use indicative Member States shall establish

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 5 – paragraph 2

2. The national criteria referred to in paragraph 1 shall include at least the following elements: (a) minimum wages, taking into account the cost of living and the contribution of taxes and social benefits; (b) the general level of gross wages and their distribution; (c) (d)deleted the purchasing power of statutory the growth rate of gross wages; labour productivity developments.

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 5 – paragraph 2 – point a

~~(a) the purchasing power of statutory minimum wages, taking into account the cost of living and the contribution of taxes and social benefits;~~deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 5 – paragraph 2 – point b

~~(b) the general level of gross wages and their distribution;~~deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 5 – paragraph 2 – point c

~~(c) the growth rate of gross wages;~~deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 5 – paragraph 2 – point d

~~(d) labour productivity developments.~~deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 5 – paragraph 3

3. Member States shall use indicative reference values to guide their assessment of adequacy of statutory minimum wages in relation to the general level of gross wages, such as those commonly used at international level.deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 5 – paragraph 4

~~4. Member States shall take the necessary measures to ensure the regular and timely updates of statutory minimum wages in order to preserve their adequacy.~~deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 5 – paragraph 5

~~5. Member States shall establish consultative bodies to advise the competent authorities on issues related to statutory minimum wages.~~deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 7 – paragraph 1 – introductory part

Member States shall take the necessary measures to ensure that the social partners are involved in a timely and effective manner in statutory minimum wage setting and updating, ~~including through participation in consultative bodies referred to in Article 5(5) and notably as concerns:~~

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 7 – paragraph 1 – point a

~~(a) the selection and application of criteria and indicative reference values referred to in Article 5 (1) (2) and (3) for the determination of statutory minimum wage levels;~~deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 7 – paragraph 1 – point b

~~(b) the updates of statutory minimum wage levels referred to in Article 5 (4);~~deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 7 – paragraph 1 – point c

~~(c) the establishment of variations and deductions in statutory minimum wages referred to in Article 6;~~deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 7 – paragraph 1 – point d

~~(d) the collection of data and the carrying out of studies for the information of statutory minimum wage setting authorities;~~deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 10

1. competent authorities with developing effective data collection tools to monitor the coverage and adequacy of minimum wages. 2. following data to the Commission on an annual basis, before 1 October of each year: (a) (i) wage and the share of workers covered by it; (ii) share of workers covered by them; (iii) (iv) coverage. (b) for minimum wage protection provided only by collective agreements: (i) the distribution in deciles of such wages weighted by the share of covered workers; (ii) the rate of collective bargaining coverage; (iii) having minimum wage protection provided by collective agreements and its relation to the level of wages of workers having such minimum protection. Member States shall provide the statistics and information referred to in this paragraph disaggregated by gender, age, disability, company size and sector. The first report shall cover years [X, Y, Z: the three years preceding the transposition year] and shall be delivered by [1st of October YY: year after transposition]. The Member States may omit statistics and information which are not available before [date of transposition]. The Commission may request Member States to provide further information on a case by case basis where it considers such information necessary for monitoring the effective implementation of this Directive. 3. information regarding minimum wage protection, including collective agreements and wage provisions therein, is transparent and publicly accessible. 4. data transmitted by the Member States in the reports referred to in paragraph 2, and shall report annually to the European Parliament and to the Council. 5. the Commission, the Employment Committee set up in accordance with Article 150 TFEU shall carry out every year an examination of the promotion of collective bargaining on wage setting and of the adequacy of minimum wages in the Member States.Article 10 deleted Monitoring and data collection Member States shall task their Member States shall report the for statutory minimum wages: the level of the statutory minimum the existing variations and the the existing deductions; the rate of collective bargaining the level of wages for workers not Member States shall ensure that The Commission shall assess the On the basis of the report issued by

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 10 – paragraph 2 – point a

(a) for statutory minimum wages: (i) the level of the statutory minimum wage and the share of workers covered by it; (ii) the existing variations and the share of workers covered by them; (iii) (iv) the rate of collective bargaining coverage.deleted the existing deductions;

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 10 – paragraph 2 – point a – point i

~~(i) the level of the statutory minimum wage and the share of workers covered by it;~~deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 10 – paragraph 2 – point a – point ii

~~(ii) the existing variations and the share of workers covered by them;~~deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 10 – paragraph 2 – point a – point iii

~~(iii) the existing deductions;~~deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 10 – paragraph 2 – point a – point iv

~~(iv) the rate of collective bargaining coverage.~~deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 10 – paragraph 2 – point b

(b) for minimum wage protection provided only by collective agreements: (i) the distribution in deciles of such wages weighted by the share of covered workers; (ii) the rate of collective bargaining coverage; (iii) having minimum wage protection provided by collective agreements and its relation todeleted the level of wages ofor workers ~~having such minimum protection.~~not

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 10 – paragraph 2 – point b – point i

~~(i) the distribution in deciles of such wages weighted by the share of covered workers;~~deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 10 – paragraph 2 – point b – point ii

~~(ii) the rate of collective bargaining coverage;~~deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 10 – paragraph 2 – point b – point iii

~~(iii) the level of wages for workers not having minimum wage protection provided by collective agreements and its relation to the level of wages of workers having such minimum protection.~~deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 10 – paragraph 2 – subparagraph 1

~~Member States shall provide the statistics and information referred to in this paragraph disaggregated by gender, age, disability, company size and sector.~~deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 10 – paragraph 2 – subparagraph 2

The first report shall cover years [X, Y, Z: the three years preceding the transposition year] and shall be delivered by [1st of October YY: year after transposition]. The Member States may omit statistics and information which are not available before [date of transposition].deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 10 – paragraph 2 – subparagraph 3

The Commission may request Member States to provide further information on a case by case basis where it considers such information necessary for monitoring the effective implementation of this Directive.deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 10 – paragraph 3

~~3. Member States shall ensure that information regarding minimum wage protection, including collective agreements and wage provisions therein, is transparent and publicly accessible.~~deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 10 – paragraph 4

~~4. The Commission shall assess the data transmitted by the Member States in the reports referred to in paragraph 2, and shall report annually to the European Parliament and to the Council.~~deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 10 – paragraph 5

5. On the basis of the report issued by the Commission, the Employment Committee set up in accordance with Article 150 TFEU shall carry out every year an examination of the promotion of collective bargaining on wage setting and of the adequacy of minimum wages in the Member States.deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 11 – paragraph 1

1. Member States shall ensure that, without prejudice to specific forms of redress and dispute resolution provided for, where applicable, in collective agreements, workers, including those whose employment relationship has ended, have access to effective and impartial dispute resolution and a right to redress, including adequate compensation, in the case of infringements of their rights relating to statutory minimum wages or minimum wage protection provided by collective agreements.deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 11 – paragraph 2

2. Member States shall take the measures necessary to protect workers, including those who are workers’ representatives, from any adverse treatment by the employer and from any adverse consequences resulting from a complaint lodged with the employer or resulting from any proceedings initiated with the aim of enforcing compliance with the rights relating to statutory minimum wages or minimum wage protection provided by collective agreements.deleted

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 16 a (new)

Article 16 a This Directive shall not apply to the Kingdom of Sweden in any of its provisions.

2021/05/18
Committee: EMPL

Peter LUNDGREN

Proposal for a directive
Article 17 – paragraph 1 – introductory part

1. Member States shall adopt the measures necessary to comply with this Directive by [~~two~~four years from the date of entry into force]. They shall immediately inform the Commission thereof.

2021/05/18
Committee: EMPL

52 Amendments of Peter LUNDGREN related to 2020/0310(COD)

ParlTrack - 2011-2024