Center for American Progress

Historic New EU Law Part of Growing Push for Sectoral Bargaining
In the News

Historic New EU Law Part of Growing Push for Sectoral Bargaining

David Madland explains how the European Union's new law aims to improve working conditions by increasing minimum wages and dramatically increasing collective bargaining.

his past fall, the European Union passed a “watershed initiative” to raise minimum wages and strengthen collective bargaining. There are numerous complexities to the new EU directive, but for pro-worker Americans the key point to understand is that the “historic” new law aims to improve working conditions by increasing minimum wages and dramatically increasing collective bargaining coverage. Critically, the policy aims to cover almost all workers with collective bargaining agreements — making it part of a growing trend of countries around the world seeking to promote sectoral bargaining.

The new directive requires EU member countries to have a process for setting their minimum wage at a sufficiently high level to provide a “decent standard of living” — which the EU suggests is at least 60 percent of the median wage and 50 percent of the average wage. The new EU law also encourages collective bargaining by requiring countries to create action plans if bargaining coverage is below 80 percent.

The above excerpt was originally published in OnLabor. Click here to view the full article.

The positions of American Progress, and our policy experts, are independent, and the findings and conclusions presented are those of American Progress alone. A full list of supporters is available here. American Progress would like to acknowledge the many generous supporters who make our work possible.

Author

David Madland

Senior Fellow; Senior Adviser, American Worker Project

You Might Also Like

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.