The annulling of the Adequate Minimum Wages Directive by the Court of Justice of the European Union (ECJ) would be “profoundly damaging” to the EU at a time when it is already under attack by “far-right Eurosceptics”, according to a new trade union-commissioned report by the social policy think tank, Tasc.
The directive, which was transposed into law in Ireland last year, is under threat due to a case taken against its validity by Denmark, supported by Sweden. They argue the EU is exceeding its power to influence the setting of wage levels in member states.
In January, advocate general Nicholas Emiliou issued an opinion in the case recommending that the directive be annulled in full. The court is not obliged to follow the recommendation but tends to in about two-thirds of instances.
Despite this, the trade union movement has remained publicly optimistic the case will be rejected. The final judgment is expected within a matter of months.
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The Tasc report, the EU Minimum Wage Directive and the Battle for Social Europe, which was commissioned by Ictu, Siptu and the Financial Services Union. suggests the directive is already having a significant impact across Europe towards achieving its primary goal, an increase in minimum rates of pay.
In Ireland, unions see one of the mechanisms set out in the directive to achieve this – the extension of collective bargaining coverage to at least 80 per cent of the workforce – as a primary objective.
As Ireland currently falls far short of this level, under the directive, the Government is required to produce an action plan before the end of the year on how to meet that goal. However, with the pending court decision, this is now in doubt.
Launching the Tasc report on Tuesday, senior economist Oisín Gilmore said a decision to annul the directive would have far-reaching consequences for the EU, its member states and citizens.
“If the ECJ were to adopt [Mr] Emiliou’s reasoning, it would not only undermine the directive,” he said, “but it could also cast doubt on the legal foundation of other key EU rights, such as the right to annual paid leave and to pay replacement for maternity leave.
“Such an outcome would erode trust in the EU’s ability to deliver on the promises of social justice and economic fairness that underpin its legitimacy”.
Ictu general secretary Owen Reidy said the court should reject the case but that, even if it does not, both Ireland and the European Union must prioritise addressing low wages and in-work poverty.
“To this end, governments here and across Europe must enhance trade union rights and promote collective bargaining by improving union access to workplaces, implementing protections against union-busting and safeguarding union representatives from discrimination.”
