Friday

1st Mar 2024

Danes still sceptical on EU minimum wage

  • Danes say their successful model would be endangered by new minimum wage proposals (Photo: florriebassingbourn)

Danes remain sceptical despite a European Commission statement the EU will not introduce statutory minimum wage in countries with a high extent of collective bargaining.

"There is nothing in this material that calms us down. We notice that there are no legal guarantees. And even if we got a legal guarantee, we would still recommend [the EU] to forget all about this initiative" - so says Johan Moesgaard Andersen, EU-director for the Danish Metalworkers' Union, who remains worried about the commission's new proposal on a European minimum wage.

Read and decide

Join EUobserver today

Get the EU news that really matters

Instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

And he is not alone in his concerns.

The proposal was published last Tuesday (14 January).

It calls for a debate with labour market stakeholders on reasonable minimum pay for employees in the European Union.

It is merely the first step on a long and winding road before any final legislation.

But it has already created a big stir among politicians and trade unions in Denmark.

Danish model still at risk

During the initial European Parliament hearing of Nicolas Schmit, the EU commissioner for jobs and social rights, left-wing Danish MEP Nikolaj Villumsen asked for a guarantee that the Nordic labour market model would not be compromised by new laws overruling member state traditions.

But last week's proposal from the commission did not give him such a guarantee.

"It is clear, they want to legislate on minimum wage. A move that would expand the EU's competency to decide over our salary. Despite reassurances that it will not affect the Nordic work model, we have formerly seen the EU court limiting trade unions' abilities to create collective agreements," he told EUobserver.

Bente Sorgenfrey, the chairwoman of the Danish Trade Union Confederation, was also unhappy with the proposal.

"It is not reassuring enough. I had expected more based on our talks on how to deal with the Nordic issue," she noted.

During last year, she and the Danish Employers' Association met with the EU's Schmit several times to discuss the topic.

The commissioner has publicly pronounced that the Nordic system of collective bargaining would under no circumstances be compromised by new legislation.

But last Tuesday's proposal lacked compelling evidence to that effect, the Danish trade unions said.

Fear of juridical overruling

The biggest concern was that the European Court of Justice could potentially overrule the law of any individual member state.

Both the Danish Metalworkers' Union and the Danish Trade Union Confederation want to see a juridical framework for a successful model of co-existence between Nordic collective bargaining traditions and a set minimum wage.

"We need to know that the European Court of Justice cannot pursue us and dictate that we have to implement a statutory wage in Denmark," Sorgenfrey said.

She explained that in the past, there had been disagreements between the European Court of Justice and Nordic member states.

One famous example was the Laval case in 2007, when Swedish construction workers clashed with Latvian company Laval u Partneri regarding equal pay for both Latvian and Swedish workers.

Trade unions in Denmark, Finland, and Sweden said the EU court should not interfere in these kinds of conflicts and industrial action.

But despite all that, the Swedes lost the case, as their demand was deemed a hindrance to the free movement of services, a pillar of the EU single market.

And ever since, jurists have argued that the European Court of Justice could impose verdicts in matters on minimum wage in Denmark, despite special exemptions from a given directive.

For his part, Bengt Furåker a professor of sociology and work science at Sweden's Gothenburg university, agreed that Nordic unions were somewhat afraid of juridical interference in the future.

"Nordic unions tend to believe in their model of collective bargaining. If there is an intervention through European legislation, then you never know what can happen in court after some years," he noted.

If minimum becomes maximum

Nordic countries remain hesitant when it comes to the benefits of legislation on wages.

Furåker recently conducted comprehensive research on the issue.

He asked trade union officials about the advantages and disadvantages of imposing a minimum wage and their replies were unambiguous.

Scandinavian trade unions tended to disagree with the proposed advantages, such as avoiding poverty and preventing wage dumping.

Instead, they expressed great concern over a potential deterioration in worker's wages.

If the European minimum wage was lower than the rate Nordic workers' unions managed to negotiate with employers, it could hamper the possibility of achieving a rise in those native rates.

"What we see in countries that have a minimum wage in Europe, is that it becomes a maximum and not a minimum in the wage development," said Sorgenfrey.

Denmark has a very high trade union density rate, which means that most workers have their rights collectively protected.

But unorganised workers may have something to gain from a set minimum wage, admitted Furåker.

And over the past few years, income inequality has been on the rise, also in Nordic states.

Opinion

Why EU minimum wage is actually bad idea for workers

As president of one of the largest trade union confederations in the EU, I see the need for good working conditions and decent pay in all member states - but an EU-wide minimum wage could be used to lower wages.

Opinion

EU minimum wage - a view from Poland

An EU minimum wage would vary between member states, at 60 percent of their respective average or median national wages. Six countries would be obliged to introduce a minimum wage. Is this a whim or a necessity?

Feature

Paradox: Nordics' privileged youth feel miserable

Young people in the Nordic countries are among the most privileged in the world - yet many of them feel miserable. The Nordic Council is concerned and aims to find out why.

Opinion

EU minimum wage directive undercuts Scandinavian model

Imposing minimum wages and interfering in collective bargaining through binding legislation, not only means breaching EU treaties - there is also a serious risk that this will undermine successful labour market models that have delivered real wage increases for decades.

EU Commission clears Poland's access to up to €137bn EU funds

The European Commission has legally paved the way for Poland to access up to €137bn EU funds, following Donald Tusk's government's efforts to strengthen the independence of their judiciary and restore the rule of law in the country.

Latest News

  1. Why are the banking lobby afraid of a digital euro?
  2. Deepfake dystopia — Russia's disinformation in Spain and Italy
  3. Putin's nuclear riposte to Macron fails to impress EU diplomats
  4. EU won't yet commit funding UN agency in Gaza amid hunger
  5. EU Commission clears Poland's access to up to €137bn EU funds
  6. Right of Reply: The EU-ACP Samoa agreement
  7. The macabre saga of Navalny's corpse
  8. Belgium braces for Flemish far-right gains, deadlock looms

Stakeholders' Highlights

  1. Nordic Council of MinistersJoin the Nordic Food Systems Takeover at COP28
  2. Nordic Council of MinistersHow women and men are affected differently by climate policy
  3. Nordic Council of MinistersArtist Jessie Kleemann at Nordic pavilion during UN climate summit COP28
  4. Nordic Council of MinistersCOP28: Gathering Nordic and global experts to put food and health on the agenda
  5. Friedrich Naumann FoundationPoems of Liberty – Call for Submission “Human Rights in Inhume War”: 250€ honorary fee for selected poems
  6. World BankWorld Bank report: How to create a future where the rewards of technology benefit all levels of society?

Stakeholders' Highlights

  1. Georgia Ministry of Foreign AffairsThis autumn Europalia arts festival is all about GEORGIA!
  2. UNOPSFostering health system resilience in fragile and conflict-affected countries
  3. European Citizen's InitiativeThe European Commission launches the ‘ImagineEU’ competition for secondary school students in the EU.
  4. Nordic Council of MinistersThe Nordic Region is stepping up its efforts to reduce food waste
  5. UNOPSUNOPS begins works under EU-funded project to repair schools in Ukraine
  6. Georgia Ministry of Foreign AffairsGeorgia effectively prevents sanctions evasion against Russia – confirm EU, UK, USA

Join EUobserver

EU news that matters

Join us