Tuesday, 24 January 2017

EU for a minimum wage for all (but they can't promise)

Amongst the first centre-right men, European Commission president became the last of leftists by proposing the idea of basic salary for every job category

by Emanuele Bonini

It's time for Europe to introduce basic salary standards, said the president of the European Commission yesterday. According to Jean-Claude Juncker, «we need a minimum wage for every job, in every Member State», and that's what the executive body of the EU has the intention to do in March, when the college of commissioners will have to approve the new social package. Juncker didn't entered into details, but speaking during a conference in Bruxelles, he underlined the importance to have a measure like the one he mentioned. «If everybody had a minimum wage, we could fight the phenomenon of social dumping, which is eroding our societies», stressed Juncker. Despite the best intentions, it is unclear how the European Commission could be able to introduce a minimum wage (that - it has to be specified - should be fixed at different levels taking into account the different realities of the Member States). The European Commission has in fact limited power on this, since by treaties the competence on social policies is shared with the Member States.

 The European Commission has the duty of promoting social policies. It has foreseen that «in defining and implementing its policies and activities, the Union shall take into account requirements linked to the promotion of a high level of employment, the guarantee of adequate social protection, the fight against social exclusion, and a high level of education, training and protection of human health» (article 9 of the treaty of the EU). Nevertheless, when it comes to employment and social inclusion, most of the actions are left in the hands of governments. It's up to the national authorities to define and set out reforms in labour market. The EU Commission can just «encourage cooperation between the Member States and facilitate the coordination of their action in all social policy fields under this Chapter, particularly in matters relating to employment, labour law and working conditions, social security». (art. 156 of the Treaty on the functioning of the EU).

Juncker was promising something he probably could never get, going beyond the tasks of the EU body of which he's responsible. It is possible that in March some communication will call the Twenty-eight countries (or twenty-seven plus one, as a lot of people have been saying after Brexit vote) to introduce a minimum wage, but he such a measure can't be imposed. It is hard to imagine that all the administrations in Europe will immediately change their national legislation on the labour market. So the risk is to have a fragmentation of rules, and a European Union split between those countries with minimum standard and those without. Of course, if there will any of such standards. Any way, Juncker opened the debate: it's time for minimum wage for all. Now the Member States have to give an answer. 

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