The European Trade-Union Institute (ETUI) publishes a file on inequality in Europe: The Benchmarking Working Europe 2021 examination shows that inequality in Europe keeps rising. The EU Commission proposes a directive on ok minimal wages and collective bargaining. This is meant to counteract inequality. 25 million humans might gain directly.
25 million European paintings completed time and nevertheless stay beneath the poverty line. After deducting hire and stuck costs, there’s typically now no longer sufficient left over from the salary to stay decently. An accident, contamination, or a sudden invoice quickly comes to be an existential threat. The Corona pandemic in addition exacerbates this inequality. Half of the 25 million falls to Germany (6.8), Spain (4.1), and Poland (4.0). A boom withinside the minimal salary might carry 25 million humans out of poverty in Europe.
-Minimum salary too low in nearly all EU nations:
In 21 out of 27 EU nations there’s a minimal salary: “In the majority, however, it’s miles too low in contrast with the respective common salaries and the fee of living”, in line with the EU Commission. Too low to stay adequately—despite operating. In Luxembourg, its miles the highest (12.73), and in Bulgaria the lowest (2.00). In nearly 1/2 of all EU states, it’s miles beneath 5.00.
However, absolutely the degree of the respective minimal salary says fairly little approximately the monetary state of affairs of the recipients. Therefore, the EU Commission requires an obligatory salary distribution method that determines the extent of the respective minimal salary.
The “double decency threshold”: minimal salary has to be 50% of common profits and 60% of median profits
The so-called “double decency threshold” is the world over and appeared as a guiding principle about placing the perfect minimal salary. According to this, a minimal salary has to be 50% of the common profits and 60% of the median profits. The median profits divide the salaries of a society withinside the middle. It is the boundary between the pinnacle 50% and the lowest 50%.
Not an unmarried EU kingdom met this “double decency threshold” in 2020. “On the contrary, contemporary minimal wages are a long way beneath the double decency threshold withinside the sizeable majority of EU nations,” says Torsten Müller, one of the visitor authors of the ETUI’s Benchmarking Working Europe 2021 examination.
Higher minimal salary reduces salary inequality among men and women and contributes to equality for all
An ok minimal salary improves the general salary shape as it impacts the improvement of the opposite salary groups. Moreover, because there are nevertheless extra ladies than men, extra migrants than natives, and extra younger than antique operating withinside the low-salary sector, it contributes to universal equality and social fairness. A minimal salary same to the “double decency threshold” might unexpectedly enhance the lives of 25 million humans. In Greece alone, the salary hole among males and females might be decreased with the aid of using 19%, in Romania with the aid of using 25%, and in Poland with the aid of using 12%.
-EU wishes for extra collective agreements: A minimal salary with a “double decency threshold” isn’t always sufficient:
In nations like Portugal, Bulgaria, and Romania, common earnings and median earnings are typically too low. Adjusting the minimal salary to those isn’t always sufficient there. Therefore, it’s miles critical to elevate the overall salary shape in Europe. Collective agreements or collective salary agreements are wanted for this. These toughen the location of employees, lessen salary inequality and counteract low-salary sectors.
“COUNTRIES WITH HIGH COLLECTIVE BARGAINING COVERAGE TEND TO HAVE MUCH LOWER WAGE INEQUALITY AND FEWER LOW-WAGE SECTORS.” SAY TORSTEN MÜLLER, KURT VANDAELE, AND WOUTER ZWYSEN IN A GUEST CONTRIBUTION TO THE BENCHMARKING WORKING EUROPE 2021 STUDY.
In sixteen of the 27 EU nations, collective bargaining insurance is below the 70% required with the aid of using the EU Commission. Countries which include Austria and Italy, on the opposite hand, are exemplary. In Austria, for example, all collective agreements signed with the aid of using the Chamber of Commerce follow the applicable sectors.
-Corona pandemic in addition exacerbates inequality in Europe, says ETUI:
“IT HAS ALMOST BECOME A CLICHÉ TO SAY THAT THE COVID-19 PANDEMIC HAS EXACERBATED ALREADY EXISTING INEQUALITIES WHILE CREATING NEW ONES.” SO PHILIPPE POCHET, LUCA VISENTINI, AND NICOLA COUNTOURIS, AUTHORS OF THE BENCHMARK WORKING EUROPE STUDY BY THE EUROPEAN TRADE-UNION INSTITUTE (ETUI).
Women, younger humans, and migrants are maximumly tormented by the pandemic. They are more and more paintings in sectors with precarious operating situations and terrible occupational fitness and safety. In maximum cases, those are the primary humans to lose their jobs. They pick out among activity loss or fitness risks. They cannot – like many higher-certified humans – paint from home.
-Inequality is the result of a neoliberal monetary version:
The Corona pandemic reinforces already current social inequalities, however, it isn’t always their sole cause. “The inequality is the result of a monetary version that has allotted much less and much less wealth to the decrease strata of society over the past 3 decades, whilst collecting an increasing number of on the pinnacle,” the ETUI examine says. The unequal distribution of wealth, power, and participation is a structural problem.
