The adequateness of minimum wages across regions, the role of cities and regions in monitoring minimum wages in their territories and competence of the European Union in the field were the main points raised by EPP-CoR members during a debate on 'Adequate minimum wages in the European Union'.
Csaba Borboly, President of Harghita County Council and EPP-CoR SEDEC Coordinator said "Poverty and social exclusion still affects millions of Europeans, but it remains the in-work poverty, that makes fair wages an important tool to prevent exclusion and dissonant inequalities in our societies. Adequate minimum wages are a compensation for the work performed and according to hours worked." Borboly added "We need to take this into account in order to safeguard the rights of both employees and employers, and in the interest of a swift economic recovery."
Ricardo Rio, Mayor of Braga said that regions and cities can use their creativity and proactivity to promote and monitor the situation in their territories. "We cannot ignore that different wages can be envisaged at the regional level, as it is the case for example in the Azores, where the minimum wage is 5% higher than in the rest of Portugal. If we want to establish a solid middle-class, and help our economies run smoothly, we cannot allow employers to underpay workers. I'm not talking about the SMEs, but much larger companies, often not based in the EU."
Concerning the adequateness of minimum wages, Rio said that in 2020, minimum wages in the EU Member States ranged from 312 Euro in Bulgaria to 2142 Euro in Luxembourg. "This is why – in particular with regard to indicators such the gross median wage and the gross average wage proposed in the draft Directive, I believe that a certain support has to be given by the CoR" he concluded.
Mark Weinmeister, Secretary of State for European Affairs for Land of Hesse touched on the question of competence of the EU on this issue. He said that several have expressed serious concerns on the EU's competence in this field, particularly on the setting of the minimum wage. He said that while the Directive says that Member States will be able to set a minimum wage, this Directive will lay down minimum requirements implying that the Directive is going beyond rules of competence.
Anna Magyar, Member of Csongrád Megye Council said "For many years in Hungary, we benefit from a well-established minimum wage system, based on a yearly agreement between the representatives of the employees, of the employers and of the government, and the yearly minimum wages are set by law. The Hungarian minimum wage is 219% of what it has been ten years ago and covers 100% of the workers. I am sure there is no one-size-fits-all solution. The Treaties and the competences of the Member States must be respected, based on subsidiarity."
