EU court overturns key provisions of bloc-wide minimum wage rules

The European Union exceeded its powers in setting rules for minimum wages, the European Court of Justice (ECJ) said on Tuesday, annulling two provisions of an EU minimum wage directive.
The top EU court in Luxembourg struck down one provision laying out the criteria for setting and updating wages and another that prevents wages from being reduced if they are subject to automatic indexation.
Denmark had challenged the regulations, adopted by a majority of EU states in 2022, and the court has now partially sided with the country.
Danish Labour Minister Kaare Dybvad Bek called the ruling a half victory but said he wished that the entire directive had been repealed.
Judges said specifying criteria for minimum wage levels directly interferes with wage-setting, which, under EU treaties, remains the responsibility of member states.
The same reasoning applied to the provision blocking wage reductions under automatic indexation – usually a formula tied to inflation.
The rest of the directive remains in force, including obligations for countries to encourage workers to join collective bargaining over work and pay conditions.
Countries where fewer than 80 per cent of workers are covered must submit national action plans to boost participation.
The ECJ said this obligation does not constitute a direct infringement of the right to freedom of association, since member states are not required to force workers to join unions.
In Germany, trade unions lamented the annulment of uniform EU-wide wage criteria.
But Bettina Kohlrausch, research director at the Hans Böckler Foundation, which is affiliated with the unions, should spur the German government to act quickly with a concrete plan to raise collective bargaining coverage.
Germany, which falls short of the 80 per cent threshold, has yet to submit its plan and is expected to do so by December 31, according to the Labour Ministry.
The Confederation of German Employers’ Associations criticised the fact that large parts of the directive were upheld and urged the government to fight back against further EU involvement in the member state’s social policy.
Under the directive’s remaining provisions, the EU recommends that national minimum wages correspond to at least 60 per cent of a country’s median gross wage.
(dpa/NAN)
We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.
More from Peoples Gazette

Agriculture
FG tasks ECOWAS on leveraging financing strategies for agroecology
The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices

Politics
Katsina youths pledge to deliver over 2 million votes to Atiku
“Katsina State is Atiku’s political base because it is his second home.”

Education
U.S. reaches $4 million civil settlement, compliance agreement with WVUHS
The West Virginia United Health System, doing business as West Virginia University Health System, has agreed to pay $4,177,139 and entered a memorandum of agreement to resolve civil allegations of Controlled

Africa
Air Peace ends of Nigerians fleeing South Africans’ xenophobic attacks
Air Peace has concluded the federal government’s humanitarian evacuation from South Africa, returning the final batch of 308 Nigerians aboard its Boeing 777-200 aircraft.

NationWide
NBC scraps annual digital TV access fee
The National Broadcasting Commission says Nigerians will no longer pay annual Digital Access Fees under the renewed Digital Switch Over project.

Economy
TransDigm abandons acquisition of Stellant Systems after DOJ’s decision to block transaction
TransDigm Group has abandoned its attempt to acquire rival defence and industrial component manufacturer Stellant Systems.

Abuja
Trump pressures Tinubu on terror prosecutions, protection for Christians
The U.S. pressed the Nigerian government to do more to protect Christians from attacks, and that greater efforts and resources must be allocated to the safe return of IDPs.

Abuja
COREN Assembly: Tinubu seeks strong regulation, sanctions
Mr Tinubu said this at the opening of the 34th Engineering Assembly of the Council for the Regulation of Engineering in Nigeria in Abuja.





