Sweden and Denmark say no to EU minimum wage
The case is being updated.
Negotiators from the EU Council and the EU Parliament were sent on Tuesday night only about a proposal for a new minimum wage directive.
– The EU has delivered on its promise. The new rules on the minimum wage will protect the dignity of work and ensure that it pays to work. This will be done in accordance with national traditions and the autonomy of the social partners, says EU Commission President Ursula von der Leyen, who himself promoted the proposal on the minimum wage in the autumn of 2020.
Meets resistance
However, the proposal meets with strong opposition in the Nordic region.
The trade union movement and the governments of both Sweden and Denmark have opposed such a legalization of the minimum wage. The fear is that it will undermine the Nordic models where the wage level is determined in negotiations between the parties in working life.
– We will propose to the Riksdag that Sweden does not vote in favor of the directive, said the Swedish Minister of Labor Eva Nordmark at a press conference on Tuesday.
– The EU will neither now nor in the future decide on how we determine wages in Sweden. Wage development is an issue that should be decided nationally, she said.
Exception
Nevertheless, Nordmark expects the directive to be adopted when it goes to a formal vote on 16 June.
However, Sweden has negotiated certain exceptions for countries with collective agreement models, the Minister of Labor informs. Thus, the directive will not be incorporated into Swedish law, according to Nordmark.
The European Commission itself clarifies that the directive does not require Member States to introduce statutory minimum wages, nor does it set a common minimum wage level across the EU.
– A threat
The Swedish LO leader Susanna Gideonsson was also present at the press conference on Tuesday morning.
She calls the EU directive a serious threat to collective agreements and their drafting.
– I welcome the Minister of Labor’s clear message that the government will not propose changes to Swedish law based on the EU Minimum Wage Directive.
“Wage developments in Sweden should not be decided in Brussels or by Swedish politicians,” said Gideonsson.
Denmark says no
Denmark will also vote against the final agreement on the minimum wage, the Danish Ministry of Labor informs NTB.
Overall, it is our opinion that the agreement will not mean that Denmark – or other countries with similar systems – will be forced to introduce a statutory minimum wage. This is due, among other things, to a joint fight against the directive from Denmark and other countries, the ministry writes in an email.
The social partners will continue to be responsible for wage formation in Denmark, the ministry states.
Deputy leader Bente Sorgenfrey in the Trade Union Movement’s Main Organization, corresponding to the Danish Trade Union Confederation, tells NTB that the Danish trade union movement has opposed the minimum wage directive for slightly different reasons than in Sweden.
– We are in principle against this treaty because we believe the EU is interfering in wage relations. We fear what they will decide next time, she says.
Three requirements
The new EU directive contains three general minimum wage requirements:
* Member States with a statutory minimum wage may introduce a framework for setting and updating the minimum wage.
* All member states must promote and facilitate collective bargaining on wages.
* Member States must collect data on minimum wages and ensure that workers have access to dispute resolution mechanisms and redress.
May have consequences in Norway
The Norwegian Government considers that the Directive should not be introduced in Norway as it is not covered by the EEA Agreement. According to Free Trade Union Movement it can still have consequences for Norway if there are court decisions linked to the directive in the EU or EFTA Court.
LO secretary Are Tomasgard says LO supports the government’s assessment.
– The directive, in the opinion of all the EU institutions involved, has a specific social policy purpose and is thus not aimed at the functions of the internal market.
Such an objective also has no corresponding legal basis in the EEA Agreement. Thus, it will be irrelevant to include the directive in the EEA agreement, says Tomasgard, who believes it is too early to say whether the directive has consequences for Norwegian law.
(© NTB)