National minimum wages could gain more ground in EU

Abstract

Subject The relationship between minimum wages and employment in the EU. Significance The introduction of a national statutory minimum wage in Germany this year took the number of EU states without one to just six out of 28. The German move raised opposition from business groups which warned that companies would shift production to countries with lower labour costs. The UK government's recent announcement of a statutory national 'living wage', higher than the minimum wage, has similarly triggered a debate about the implications for employment. Impacts In Austria and Nordic states without a statutory national minimum wage, collectively negotiated sector minimum wages fulfil the same role. The opening of such labour markets to foreign workers, not typically covered by collective agreements, is challenging the current system. Italy is considering the introduction of a national minimum wage but trade unions are opposed.