EU: Min Pay Directive transposition behind schedule

Most EU Member States failed to meet the November 15 deadline to transpose the EU Adequate Minimum Wage Directive into national law. It sets a guideline for minimum wages to be at 60% of the median wage and 50% of the average wage, while encouraging 80% workforce coverage in collective bargaining.

The big picture: Only 8 countries, including Austria, Italy, Spain, and Denmark, currently meet the collective bargaining threshold, revealing significant disparities between union membership and bargaining coverage, such as in France where union density is low but bargaining coverage is high due to legal extensions.

What unions are saying: European trade unions view the Directive as vital for rebuilding membership and express frustration over the delay in its implementation. IndustriAll Europe has prepared a guide for unions to leverage the Directive for boosting membership and bargaining power.

What’s next: The upcoming Pay Transparency Directive, effective by June 2026, will require employers to address gender pay gaps, with measures to engage employee representatives in discussions. Additionally, the Corporate Sustainability Reporting Directive will require gender pay gap reporting by 2025, increasing corporate accountability.

ADDITIONAL INFORMATION:

IndustriAll Europe guide on using Minimum Wage Directive to boost membership and collective bargaining: HERE

Comparison chart Transparency Directive and the Corporate Sustainability Reporting Directive from Iain Stark.

ETUC statement on pay transparency.