Finland Ministers Approve Tender

EU employment and social affairs ministers adopted a general approach to the directive on adequate minimum wages. The aim of the proposed directive is to reduce in-work poverty by defining the ways in which Member States should promote the adequacy of the statutory minimum wage collective bargaining and the implementation of minimum wage provisions.On 6 December 2021 the Employment Social Policy Health and Consumer Affairs Council STECF adopted the EU Minimum Wage Directive. The aim will not continue to be to set a common minimum wage for all EU countries. Adequate minimum wages are set by setting criteria that EU countries must meet when deciding on statutory minimum wages and when reviewing the level of the minimum wage. In addition it is hoped that the directive will promote collective bargaining and for example improve compliance with wage regulations for example in public procurement. In Finland it is important to understand that even though we have a functioning collective bargaining system this is not the case all over Europe. In-work poverty is also a real problem in the EU. This also hampers equal competition in the European Union says Minister of Labor Tuula Haatainen .Minister Haatainen did not participate in the Council on 6 December. due to coronavirus exposure.Finland is not promised a statutory minimum wageIf the Minimum Wage Directive is adopted in the EU in the form of the Councils general approach its effects in Finland will be small. The effects will be felt mainly in those EU countries with a statutory minimum wage.According to the draft directive there is no need to set a statutory minimum wage in countries where wages are agreed in collective agreements. In Finland the determination of wages is regulated by the Collective Bargaining Act and the Employment Contracts Act and therefore the directive is not expected to cause major changes in Finnish legislation.Finland is already meeting the sections on the promotion of collective bargaining in the draft directive quite well. Finland should report to the EU Commission on among other things the lowest wages in the low-wage sectors and the coverage of collective agreements. Legislation may need to be amended to provide for sanctions for non-compliance with wage regulations.The EU is continuing the trialogue between the Council the European Parliament and the Commission. Negotiations will begin next year under the incoming French presidency of the EU. Finland has already emphasized in the STC Council that the autonomy of labor market organizations must also be respected in connection with tripartite negotiations.