European Committee of Regions: Fair wages could stabilise economy
A fair level of wages for all workers in the European Union could fight poverty, stabilise the economy and boost competitiveness and growth, argues an opinion adopted by the European Committee of Regions (CoR) i in its plenary session today. The opinion drafted by Mick Antoniw (UK/PES) recalls that poverty and social inequalities have worsened since the crisis and that in-work poverty is a growing problem in Europe.
While recognising that the responsibility for employment and social policy lies primarily with national or regional governments, the CoR recommends to the Member States to adopt an indicative fair wage, geared towards the use of 60% of median wage as a benchmark and based on reference budgets, which are a package of goods and services an individual needs to live at a decent level. "All Member States should ensure a decent existence for people - for instance by providing the services needed to secure a decent living for them - and should pursue labour market and social policies that ensure fair wages over the working life cycle", says rapporteur Mick Antoniw, Member of the Welsh Assembly for Pontypridd.
At EU level, fair wages as an economic factor could be addressed in Country Specific Recommendations and as part of the European Semester. "The democratic legitimacy of the European Union will be strengthened if Europe’s citizens recognise that social progress is also being addressed when employment and social dimension are fully integrated into the yearly cycle of economic policy coordination alongside the promotion of growth", Mr Antoniw continues.
The CoR considers that fair wages are important economic stabilisers and a key tool to boosting non-price competitiveness, thus acting as a significant driver of economic growth and helping avoid stagnation. A fair wage, together with equitable terms and conditions of employment and an adequate social protection system, are also pre-conditions for fostering fair competition between EU Member States and avoiding social dumping, not least in the case of posted workers.
The opinion also encourages local and regional authorities to lead by example, in their capacity as employers, and work towards ensuring fair wages for their employees.
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