A new Eurofound report finds that increases in national minimum wages are contributing to modest gains in collectively agreed pay and actual wages in many low-paid sectors across Europe. Covering developments between 2015 and 2022, the study notes that higher minimum wages are associated with a greater likelihood of renewing collective agreements in sectors such as care and food manufacturing. The report shows that a 1% rise in national minimum wages corresponds to a 0.2% increase in negotiated pay and a 0.31% increase in actual wages for the lowest-paid 25% of workers. These effects appear stronger in countries with broad collective bargaining coverage, while in countries with weaker systems, statutory minimum wages remain the primary tool for wage growth. No clear evidence was found that minimum wage increases undermine collective bargaining.
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For more information, please contact Paul de Beer or Oana Ciuca, De Burcht (Scientific Bureau for the Dutch Trade Union Movement) p.t.debeer@uva.nl or the Head of communications at the ETUI, Mehmet Koksal mkoksal@etui.org. For previous full issues of the Collective bargaining newsletter please visit https://www.etui.org/Newsletters/Collective-bargaining-newsletter or consult the archive with all articles in our database at www.cbnarchive.eu.
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