Finland Supports Goal Tender

The European Commission adopted its proposal for a directive on adequate minimum wages in the EU. The Government supports the objective of the proposal to combat in-work poverty inter alia by improving the role of labor market organizations in wage formation and their ability to negotiate and agree on wages through collective agreements.- In the government program we have outlined that the social dimension is an important EU priority and that reducing inequality is central to EU cooperation. The Commissions initiative responds to both Minister of Labor Tuula Haatainen explains.The aim of the Commissions proposal is to ensure adequate pay and a decent standard of living for EU workers. Member States would not be required to legislate on the minimum wage nor would the level of the minimum wage be determined. The proposal seeks to strengthen the role of social partners in wage formation in countries where minimum wages are based on law.On 10 December 2020 the Government submitted a U-letter to Parliament on the Commissions proposal and the Governments position on it. According to the preliminary examination the directive does not seem to cause significant changes in legislation in Finland. Proceedings at the EU level have only just begun so Finlands position will be clarified as the case progresses.No significant changes are expected in Finnish legislationThe directive proposed by the Commission would provide a framework for addressing and monitoring the minimum wage in the Member States at EU level. The changes would apply in particular to EU countries with a statutory minimum wage. The proposal seeks to ensure that minimum wages meet certain criteria and that social partners are involved in determining and monitoring wage levels. No uniform EU minimum wage is proposed.The statutory minimum wage would not be required from Finland or other countries where wages are determined by collective agreements. According to the proposal Member States should promote collective bargaining. Finland emphasizes the need to respect the contractual autonomy of the social partners in wage formation.The Commission proposes that Member States should be required to compile statistics and report on the development of minimum wages.- In some Member States statutory minimum wages have lagged behind and in-work poverty has increased. Monitoring at the EU level would in turn support balanced wage development and thus also level the playing field for companies in the internal market says Minister of Labor Haatainen.