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Available on Transfer's Website: https://journals.sagepub.com/doi/pdf/10.1177/1024258919873989 Summary The development of a European minimum wage policy is back on the political agenda. While in the past the debate about a European minimum wage policy was largely detached from developments at national level, more recently the debate has been based on various national-level initiatives to ensure a living wage that enables workers and their families to enjoy a decent standard of living. Based on an introduction to the living wage concept, this article analyses how recent living wage initiatives in several EU Member States and the development of a European minimum wage policy could mutually reinforce each other and eventually result in a European living wage policy. In view of the significant heterogeneity of minimum wage regimes and welfare state traditions across Europe, the article calls for a pragmatic approach that adopts a common European target of 60 per cent of the national median wage as the benchmark for an adequate minimum wage.

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... Therefore, the criterion of the purchasing power of the minimum wage, also mentioned in the Directive, is very important. The so-called basket of goods approach, as used in many living wage initiatives (Schulten and Müller 2019), can be used to ensure that minimum wages set in line with the double decency threshold are adequate. Under this approach, the minimum wage must be high enough for employees to be able to afford a certain basket of goods and services ensuring an adequate standard of living. ...
... While in countries like Italy, France or Austria almost all employees are covered by a collective agreement, in some Central and Eastern European countries this is the case for only a minority of employees. In addition, collective bargaining coverage in many European countries has been decreasing for more than two decades (Müller et al. 2019). ...
Chapter
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The chapter argues that the adoption of the Directive on Adequate Minimum Wages in October 2022 –explicitly understood as implementing EPSR Principles 6 and 8 – marks a turning point in European minimum wage policy. But there is more: other recent EU-level initiatives in the field of wages and collective bargaining include a) the September 2022 Guidelines on the application of EU competition law to the collective agreements of solo self-employed people; b) the June 2023 Council Recommendation on strengthening social dialogue in the EU; and c) the April 2023 Pay Transparency Directive, which is aimed at combatting pay discrimination and helping close the gender pay gap. Taken together, these initiatives point to no less than a paradigm shift in the EU’s approach to wages and collective bargaining. In this chapter we analyze the political process leading to the adoption of the Minimum Wage Directive as the first-ever piece of EU legislation explicitly aimed at establishing an adequate minimum wage floor and at strengthening collective bargaining. Crucially the Directive obliges Member States with a collective bargaining coverage of less than 80 per cent to take measures to increase it. But not only this – it is also one of the most significant expressions of the shift in discourse on the EU’s social dimension, previously dominated by the neoliberal paradigm of market liberalisation which put existing industrial relations and social systems under pressure. Its positive impact on the development of minimum wages can already be seen in various countries even before its formal transposition into national law, due in November 2024. The Directive creates an important political frame of reference strengthening those positions and players at national level who advocate adequate minimum wages and strong collective bargaining. However, its actual ‘bite’ will depend on effective transposition by the Member States, which in some cases may be hard-fought and require trade union mobilisation.
... Many academic studies of living wages have been econometric in focus, notably in the USA (Adams & Neumark, 2005;Brenner, 2005;Neumark et al., 2013). Nonetheless, as noted in the introduction, there is a growing body of academic research in the past five years or so that considers the ethics and social justice aspects of a living wage and/ or socio-economic rationales for such (Dobbins & Prowse, 2021;Heery et al., 2017Heery et al., , 2018Hirsh, 2017;Hodgetts et al., 2022;Johnson et al., 2019;Prowse et al., 2017a, b;Schulten & Müller, 2019;Searle & McWha-Hermann, 2021;Werner & Lim, 2016). For example, Searle and McWha-Hermann (2021) review articles on the living wage from 2000 to 2020 to examine how the context of living wage research has developed since early economic analysis, to incorporate a broader range of disciplines since around 2014, including more management and employment relations insights, and analysis from psychology, medicine/ health, sociology, social/public policy, theology. ...
... Searle and McWha-Hermann (2021) outline the redundancy of simple (economistic) study of wage rates without comprehending the factors that make work decent. Special issues of journals covering the living wage from an employment relations perspective have included Labour & Industry , Employee Relations (Prowse et al., 2017a), and Transfer: European Review of Labour and Research (Schulten & Müller, 2019). This body of research presents living wages in different countries as providing workers and their families with higher capacity to participate in society, develop and make meaningful contributions in work and life, and experience a decent standard of living. ...
Article
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Real living wages (RLWs) are an important ethical and moral policy to ensure that employees earn enough to live on. In providing ‘a fair day's pay for a fair day's work’, they set an ethical foundation for liveability. This article explores the ethics and moral economy of the RLW for lower-paid staff in the overlooked economy context of UK professional football, illustrated by a qualitative case study of Luton Town Football Club (LTFC). The article provides theoretical insights grounded in moral economy concepts about how a RLW contributes to a broader common good means of enabling fuller human participation in decent working and living conditions. Applying these concepts using a multi-disciplinary moral economy interpretation offers deeper theoretical contributions than economistic interpretations restricted to mainly technocratic economic distributive issues. LTFC are evidently ethically embedded in a moral economy as a local community club paying a RLW, and part of the overlooked economy. The research also contributes to contemporary debates on ‘Common Good’ HRM regarding the role of living wages in addressing grand common good challenges like inequality and quality of working lives.
... More recently, however, existing minimum wage levels are increasingly criticised for being "too low" and not adequate to prevent in-work poverty. Living wage movements around the world have demanded substantial increases of minimum wages in order to ensure low wage workers might enjoy a decent standard of living (Figart, 2004;Anker and Anker, 2017;Schulten and Müller, 2019). The issue of low pay gained even more prominence during the Corona crises, when it became clear that many of the so called "essential" or "key" workers are in fact at the bottom of the wage ladder. ...
... With regard to social policy, there is growing concern around the world as to whether or not a minimum wage supports an adequate household income. Many advocates of a European minimum wage refer to a decency threshold, or a living wage, which relates to a measure of earned income that avoids poverty (Schulten, 2012;Fernandez-Macias and Vacas-Soriano, 2013;Schulten and Müller, 2019). Such notions are central to minimum wage discourse in the Netherlands and Spain, as well as successful sector bargaining campaigns, such as the German fast food sector, documented in this book. ...
Chapter
While the minimum wage debate belongs to the most important topics for tripartite negotiations in CEE countries with established structures of tripartite social dialogue, evidence shows that in several countries different mechanisms assure the minimum wage is increased on a regular basis rather than stalled by disagreements in tripartite negotiations. It could be an established mechanism with a fixed procedure to settle a minimum wage increase if social partners fail to come to an agreement (as, for example, in Hungary before 2002, or in Czechia and Slovakia) or a discretionary government decision inscribed in the long-term budget planning (as in Bulgaria). Acknowledging the diverse mechanisms of minimum wage setting in CEE countries, this chapter explores and analyses minimum wage negotiations from an actor-oriented and industrial relations oriented perspective (see Dingeldey et al., chapter 1). It asks what role do tripartite social partners, including representatives of employers, trade unions and governments, play in the annual fixing of minimum wages?; and how do the minimum wage setting procedures affect and interact with broader processes of collective bargaining at the national and sector levels? In addressing these questions, the chapter seeks to explain the relationship between two important phenomena - namely, steep rises of minimum wages on the one hand, and a declining power of trade unions, bargaining decentralisation and a weakening policy influence of tripartite negotiations on the other.
... More recently, however, existing minimum wage levels are increasingly criticised for being "too low" and not adequate to prevent in-work poverty. Living wage movements around the world have demanded substantial increases of minimum wages in order to ensure low wage workers might enjoy a decent standard of living (Figart, 2004;Anker and Anker, 2017;Schulten and Müller, 2019). The issue of low pay gained even more prominence during the Corona crises, when it became clear that many of the so called "essential" or "key" workers are in fact at the bottom of the wage ladder. ...
... With regard to social policy, there is growing concern around the world as to whether or not a minimum wage supports an adequate household income. Many advocates of a European minimum wage refer to a decency threshold, or a living wage, which relates to a measure of earned income that avoids poverty (Schulten, 2012;Fernandez-Macias and Vacas-Soriano, 2013;Schulten and Müller, 2019). Such notions are central to minimum wage discourse in the Netherlands and Spain, as well as successful sector bargaining campaigns, such as the German fast food sector, documented in this book. ...
... More recently, however, existing minimum wage levels are increasingly criticised for being "too low" and not adequate to prevent in-work poverty. Living wage movements around the world have demanded substantial increases of minimum wages in order to ensure low wage workers might enjoy a decent standard of living (Figart, 2004;Anker and Anker, 2017;Schulten and Müller, 2019). The issue of low pay gained even more prominence during the Corona crises, when it became clear that many of the so called "essential" or "key" workers are in fact at the bottom of the wage ladder. ...
... With regard to social policy, there is growing concern around the world as to whether or not a minimum wage supports an adequate household income. Many advocates of a European minimum wage refer to a decency threshold, or a living wage, which relates to a measure of earned income that avoids poverty (Schulten, 2012;Fernandez-Macias and Vacas-Soriano, 2013;Schulten and Müller, 2019). Such notions are central to minimum wage discourse in the Netherlands and Spain, as well as successful sector bargaining campaigns, such as the German fast food sector, documented in this book. ...
... In a range of countries, different variants of the basic living cost approach have been successfully applied to determine an adequate minimum wage level that represents a living wage (Hirsch and Valadez-Martinez 2017); however, there are some strong arguments against attempts to use an internationally standardized approach in pursuing the European Commission's minimum wage initiative (Schulten and Müller 2019). ...
... In the past, debates about a European minimum wage policy have often been symbolic and did not go beyond paying lip-service to the notion of a more social Europe rather than defining a concrete policy project. The problem was that the debates at European level have borne no relation to developments at national level (Schulten and Müller 2019). This is different this time. ...
Article
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On 14 January 2020, the European Commission published a consultation document with a view to take legislative action to establish fair minimum wages in Europe; In this policy brief we argue for a pragmatic approach of taking the ‘in-work-povertywage’ threshold of 60 per cent of the national full-time gross median wage as the reference to assess the adequacy of minimum wages; In countries in which a high proportion of workers earn very low wages, the whole wage structure, and therefore the median wage, is very low; therefore, a minimum wage of 60 per cent of the national median wage may still not be enough to ensure a decent living standard; The Commission initiative should, therefore, include an obligation to subject the 60 per cent target to a real-life test by examining, for instance on the basis of a country-specific basket of goods and services defined with the full involvement of trade unions and employers’ organisations, whether a minimum wage of 60 per cent of the national median wage really amounts to a wage that ensures a decent living standard; In addition, the Commission should develop further proposals for measures to support sectoral collective bargaining as the primary tool to stabilize and raise the overall wage structure in order to ensure that 60 per cent of the national median wage really is a fair minimum wage which provides for more than mere subsistence by enabling participation in society and some scope for workers to insure against unforeseen shocks.
... Definition 1b follows the same logic as 1a, but focuses on earnings in occupations and not on full-time wages. As discussed above, the earnings for many employees often fall short of a fulltime monthly wage due to part-time work and unstable temporary employment (Schulten and Müller, 2019). This definition shows whether these tendencies also translate into the occupational structure; that is, if some occupations are more exposed to earnings that generally do not reach the full-time earning potential. ...
Article
Can the Nordic wage-setting model, where social partners decide wages through collective agreements, counteract a growing low-paid sector? This article tests four definitions of low-paid jobs to analyze whether this sector has grown for the period 2005–2020 in Sweden. Despite policy changes pointing towards growth, all definitions show a slight decrease in low-paid jobs over time. The authors argue that the industrial relations system, with the aim of keeping the industry wage increases in check to aid export competitiveness, also sets a uniform level wage that limits low-paid jobs. It is also found that low pay in the Swedish setting is partly a result of working less than full-time or having unstable employment, and service workers and those with low education are becoming increasingly common in this position.
... Дослідження К. Бюхтемана та С. Квака [4] та подальші роботи Г. Стендінга [5] присвячені визначенню економічного підґрунтя для посилення процесів прекаризації та маргіналізації сформованої класової структури західних суспільств на межі тисячоліть та їх прискорення в умовах нового ХХІ століття. Цікавими, на наш погляд, є дослідження, що відображають регіональну специфіку пошуку політичних механізмів інтеграції маргіналізованих прошарків в соціально-політичне життя держав (Норвегії, Нідерландів, Німеччини, Данії, Польщі, Іспанії, Великобританії та інш.) як з огляду зниження соціального напруження та дестабілізації, так і створення нових можливостей для політичних партій та рухів [6][7][8][9][10][11]. Визначення ефективності інструментарію існуючої інституційної матриці та оцінка можливостей щодо появи нового задля артикуляції запитів маргіналізованих спільнот, зокрема і прекаріату, піднімаються в праці С. Лазара та А. Санчеса А. [12], а також у науковій роботі П. Маркса та К. Нгуєна [13]. ...
... It would make no sense to define this as a uniform, nominal hourly wage that would apply in Luxembourg as well as in Croatia. Instead, a value of 60 per cent of a country's national average wage could be an adequate relative standard (Schulten/Müller 2019). Following this logic, relative minimum standards could be established for social assistance, unemployment benefits and pensions (in the last two cases, this would take the form of minimum wage-compensation rates), including minimum standards for entitlements to social benefits. ...
Article
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The social potential of European policy is structurally limited. The future of a social Europe therefore does not lie in the creation of a European welfare state. It lies in the strengthening of the national pillars of the European Social Model, the democratic welfare state, and institutionalised labour relations. What tasks does this entail for European policy making? European policymakers have to reform the European fiscal rules, improve the protection of social rights, and introduce social minimum standards.
... Furthermore, the document raises the issue of coverage, observing that due to lack of enforcement capacity at the national level, some workers are paid below the legally mandated minima. Still, given the heterogeneity of minimum wage-setting regulations and traditions across the EU, there is still an ongoing debate about whether the Union should intervene in this policy area (Schulten and Müller 2019). ...
Chapter
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This chapter provides an overview of how labour market reforms have unfolded in Western Europe in the aftermath of the 2007-8 financial crisis. It argues that interrelated processes of liberalisation and deregulation have characterised the direction and content of labour market reforms and that this has increased precarity of labour across advanced capitalist economies as well as exacerbating inequality. Following the literature on institutional change, we show that a common trend of liberalisation, understood as the gradual expansion of market mechanisms in areas previously reserved for collective decision-making (Streeck 2008, 2011), has been a distinctive feature of policy making in the aftermath of the crisis. For labour markets and industrial relations systems, liberalisation implies ‘the steady expansion of employer discretion’ (Baccaro and Howell 2017: 18) through deregulation or the removal of institutional protections to employment. Framed as one of the root causes of weak competitiveness, low productivity and unemployment, employment protection legislation (EPL) came under attack from both national and international actors. Structural reforms advocated by the European Union (EU) featured labour market deregulation and wage restraint as the principal means to solve persistent imbalances in national labour markets and restore competitiveness. Deregulation has taken root even though solid evidence for the detrimental impact of EPL on employment outcomes is missing (Avdagic 2015). The principal outcome of deregulation has been a weakening in the position of labour (Heyes et al. 2012) and an expansion of precarious employment.
Article
With the decline of unionization and collective bargaining coverage rates across advanced economies, governments increasingly make use of statutory minimum wages to ensure adequate compensation for low-wage workers. This state intervention reflects the liberalization of labour markets and the rise of an ‘employment rights’ regime, where state regulation in the low-wage sector plays a growingly important role as the influence of social partners diminishes. This article investigates the factors that drive increased governmental involvement in minimum wage-setting mechanisms (MWSMs). Through a combination of historical large-N statistical analysis and an in-depth review of ruling parties’ justifications to changes in MWSM, we find that economic and industrial relations variables – such as lower economic growth, higher inflation, and declines in unionization and collective bargaining coverage – primarily explain the shift towards greater governmental discretion. Partisanship and electoral cycles appear less significant. A media analysis of policymakers and social partners’ statements in Germany, the United Kingdom, Ireland, and Spain reveals that governments justify intervention by emphasizing their responsiveness to changing economic circumstances. These findings have implications for the study of partisan politics and low-wage regulation, highlighting the growing role of governments in wage-setting practices.
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Bu çalışma, hemşirelerde sorunlu bir alan olarak görülen ücreti konu alarak, ücret tatmininin sendikal algı ve sendikal beklentiyle olan ilişkisini ve etkisini incelemektedir. Bu çalışmada, hemşirelerin ücret tatmini ölçülmüş, sendika yöneticilerinin bakış açılarıyla hemşirelerin çalışma hayatı ve ücret sorunları, sendikal algı ve beklentileri değerlendirilmiştir. Çalışmanın amaçları ve varsayımları Sosyal Değişim Kuramına dayandırılmış ve bu kuram ışığında geliştirilmiştir. Bu çalışma, hemşirelerin ücret tatmin düzeylerinin artırılması için sendikaların önemi konusunda karar vericilere ve sağlık yöneticilerine önemli bir perspektif sunmaktadır. Araştırma nicel ve nitel tekniklerin ışığında karma yöntem desenlerinden paralel yakınsayan desenle gerçekleştirilmiştir. Araştırma 2022-2023 yılları arasında Balıkesir'de yürütülmüştür. Nicel araştırmanın evrenini Balıkesir'de 3. basamak 3 eğitim araştırma hastanesinde çalışan 1250 hemşire oluşturmuştur. Araştırmanın örneklemi G Power yazılım programında post hoc güç analizi için 0.47 etki büyüklüğü, %5 hata payı ile varyans analizi için 0.89 güç ile 210 hemşire yeterli bulunmuştur. Araştırmanın nitel kısmı sağlık hizmetlerinde faaliyet gösteren kamu sendikaları yönetici ve yetkilileri üzerinden amaçlı örnekleme yönteminin tipik örnekleme türüne göre 15 sağlık çalışanı sendika yetkilisi ile yarı yapılandırılmış görüşme tekniğiyle gerçekleştirilmiştir. Nicel araştırmanın veri toplama aracı olan ölçek, dört bölümden meydana gelmiştir. Birinci bölüm demografik değişkenlere yönelik önermeler, ikinci bölüm ücret tatmin ölçeği, üçüncü bölüm sendika algısı ölçeği ve dördüncü bölüm sendikal beklenti ölçeği şeklindedir. Araştırmanın verileri SPSS 26.0 programında analiz edilmiş, verilerin çözümlenmesinde sayı, yüzdeler, bağımsız gruplarda t testi ve One Way ANOVA Testleri ve farklılıkların nedeni için Tukay Post Hoc testi uygulanmıştır. Değişkenlerin ilişkisinin incelenmesi için Pearson korelasyon katsayısı kullanılmış, değişkenlerin etkisi için Linear regresyon analizi uygulanmış anlamlılık düzeyi p<0,05 olarak alınmıştır. Nitel Araştırmada elde edilen verilerin transkripsiyonunda ve analizinde MAXQDA 2020 nitel analiz programı kullanılmış içerik analizi uygulanmıştır. Araştırma bulgularının sunumunda kod-alt kod hiyerarşi modelleri, alt kod istatistiği, kod matrisi, kelime bulutları ve tablolarda (n, f, % gibi) nicel veriler den faydalanılmıştır. Nicel analiz sonucunda hemşirelerin ücret tatmininin sendikal algı (r = ,383; p <.001) ve sendikal beklenti (r = ,246; p <.001) ile arasında zayıf düzeyde pozitif yönde anlamlı bir ilişki olduğu sendikal algı ile sendikal beklenti (r = ,513; p <.001) arasında orta düzeyde pozitif yönde ilişki olduğu saptanmıştır. Hemşirelerin ücret tatmin düzeyleri tek başına sendika algılarının %14,7'sini ve sendikal beklentilerinin %6'sını açıklamaktadır. Sendikal algıları tek başına sendikal beklentilerinin %26,3'ünü açıklamaktadır. Nitel analiz sonucunda bulgular ücret ve çalışma hayatı sorunları, sendika algısı, sendikal beklenti şeklinde 3 ana tema da toplanmıştır. Araştırma sonucuna göre ücret yetersizliği, ücret adaletsizliği, sendikal, meslekle ve işyeriyle ilgili sorunların yoğun olduğu; hemşirelerin sendika algılarının olumsuz olduğu, sendikalardan beklentilerinin ücret, sosyal, sendikal, mesleki ve çalışma alanıyla ilgili yüksek oranda ve çeşitlilik gösterdiği bulunmuştur. Sonuç olarak ücret tatmini ve sendikal algılarının olumlu yönde artırılması ve sendikal beklentilerinin karşılanması; çalışanların işlerine bağlılıklarını, performanslarını ve iş hayatındaki memnuniyetlerinin artmasına yardımcı olur. Bu çalışma hemşireler için ücret tatminin önemini vurgularken ücret tatmin düzeylerinin sendikal algı ve beklentilerini etkilediğini göstermiştir.
Article
A living wage (LW) refers to the salary that would be sufficient to cover the costs of a decent living standard for the employee and his family in a specific place. The topic is scarcely discussed in Latin American countries, which could benefit from it since the population of these countries faces several social and economic challenges, such as poor minimum wages (MWs), inflation and high poverty levels, even among employed people. To address this gap, this paper explores the research streams on LWs through a bibliometric assessment and sheds light on three case studies from Latin America evidencing the minimum wage gap in some Latin American countries. The results indicate huge disparities between MWs and LWs and, based on the bibliometric analysis, provide a stakeholder roadmap for action and a maturity level model for companies to adopt LWs.
Conference Paper
Studiul vizează dreptul la muncă în Republica Moldova prin prisma noului program de guvernare – Moldova vremurilor bune. Asigurarea progresivă a drepturilor economice și sociale – implicit dreptul la muncă – este stipulată în documetele definitorii ale drepturilor omului la nivel internațional și incluse în Constituția Republicii Moldova, în timp ce salariul minim reprezintă unul dintre instrumentele publice de bază prin care statul impulsionează remunerarea decentă a muncii. Dincolo de dezbaterile centrale din economia (neo)clasică, care sunt tratate în prima secțiune, cercetarea vizează salariul minim din perspectiva drepturilor economice și raportează analiza la Programul de activitate al Guvernului, votat în Parlamentul Republicii Moldova la 6 august 2021. Constatarea de bază – salariului minim este un instrument incoerent, inechitabil și insuficient în Republica Moldova, a cărui reformă trebuie să constituie o prioritate imediată a Guvernului.
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The Directive on Adequate Minimum Wages represents a watershed initiative adding substance to the EU’s social dimension. It contains two ambitious objectives: establishing the minimum level of statutory minimum wages at 60% of the gross median wage, and increasing collective bargaining coverage (CBC) to at least 80% of workers. In this article, we assess how statutory minimum wages and collective bargaining coverage are associated with the likelihood of low pay. Using a time series cross-section of EU-SILC for income years 2004–2019, we identify and assess the absolute and relative size of ‘effective wage floors’ for full-time employees in 30 countries. We specify multilevel, random effects within-between regression models to assess the individual and joint associations of SMW and collective bargaining coverage with wage floors. Our results indicate that SMWs and CBC both have distinct roles in establishing the effective wage floor. First, higher collective bargaining coverage is on average associated with a lower share of workers earning below 60% gross median wages. Second, higher SMWs are strongly associated with higher effective wage floors. Third, both collective bargaining coverage and union density are strongly associated with higher wage floors.
Article
New Zealand is a relatively low wage economy but living costs are high and rising. One government response has been to accelerate the Minimum Wage (MW) which is now converging on the Living Wage (LW) rate. This paper explores employer attitudes and practices regarding the LW, in the context of the rising MW and Covid disruption, based on a survey of over 600 organisations. Motivation for adopting the LW simultaneously derived from ethical considerations of fairness, especially given higher living costs, and prospective returns such as better recruitment, retention and motivation in the context of tighter labour markets. Implementing the LW had mixed employment effects with benefits more likely to accrue to larger organisations. However, difficulties relating to wage differentials were also more acute in larger firms. Where affordability inhibited the full restoration of wage differentials, which were narrowing in many organisations due to the higher MW or adoption of the LW, this resulted in a perceived inequity for relatively higher paid employees. The findings highlight how perceptions of ‘fairness’ may vary. This could limit the wider adoption or potential gains arising from the LW, and employment relation processes need to be configured to defuse such potential indirect effects.
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The presented research work deals with the multidimensionality of investigations on the problems of precariousness and precarization through recent period of time. The approaches of domestic and foreign scholars on the content of the study, sources of formation and political consequences of strengthening the processes of precariousness in modern societies have been systematized. The interpretation of the phenomenon of precariousness in narrow and broad senses has been identified. It’s been noted that important determinants of the transformation of socio-political structure of states in postmodern era are the changes within system of global and national production, the spread of network formats of organization of production and labor, the demand for international and national business flexible forms of labor organization. The priorities of scientific research through the first quarter of the 21st century in the analysis of changes within structural nature of the socio-political representation of wages-based labor in new conditions of global economy and geopolitics have been revealed. It is determined that the growth of youth unemployment due to structural transformations of manufacture and employment system, the introduction of restrictive and often discriminatory measures against migrants on the background of intensifying slogans of economic and political nationalism exacerbate the problem of social stability and political predictability, that contributes to the renaissance of populist movements and parties, in particular, either left or right bias. The research potential for the analysis of precarization processes in the world as a whole and in some particular countries of specialized reports and projects of international organizations has been identified. It is important that international organizations are not limited to educational and analytical functions on unemployment and social stability, but also make efforts to stabilize the workforce, in particular within the UN, the International Labor Organization (ILO), such associations like the EU, OECD and other international and regional organizations. Assessment of trends and manifestations of social instability and uncertainty in the analysis of the impact of the COVID-19 pandemic, both at the global level and in some countries and regions, is carried out through the measuring processes of industries and services restructuring; increasing share of flexible forms of employment, freelance, "zero contracts", strengthening of new social statification.
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Online available: https://illej.unibo.it/article/view/13368 In autumn 2020, the European Commission published a proposal for a "Directive on adequate minimum wages in the European Union". For the first time in the history of the EU, draft legislation is on the table which explicitly aims not only to significantly increase the level and scope of minimum wages in Europe, but also to strengthen collective bargaining systems. The proposal thus represents a fundamental paradigm shift in European labour policy. Not so long ago, the Commission essentially viewed adequate minimum wages and strong collective bargaining systems as institutional barriers for the functioning of free markets and thereby as having a negative impact on the development of growth and employment. Indeed, in the wake of the last major economic crisis in 2008/2009, the EU exerted considerable influence in many countries towards freezing or even decreasing minimum wages and weakening collective bargaining systems. Now the European Commission’s approach is the exact opposite: by upgrading minimum wages and extending collective bargaining, the main aim is to strengthen the bargaining position of workers. The adoption of the Directive would mark a significant step towards a more “Social Europe”. However, the debate on the Directive is shaped by various political and legal fault lines so that its adoption is still anything but certain.
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Das soziale Potenzial europäischer Politik ist strukturell begrenzt. Die Zukunft eines sozialen Europas liegt daher nicht in einem europäischen Super-Wohlfahrtsstaat, sondern in der Stärkung der nationalen Pfeiler des europäischen Sozialmodells, dem demokratischen Wohlfahrtsstaat und institutionalisierten Arbeitsbeziehungen. Welche Aufgaben kommen hierbei auf die europäische Politik zu? Sie muss die europäischen Fiskalregeln reformieren, soziale Rechte effektiver schützen und soziale Mindeststandards einführen.
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Labor scholars identify increased roles of “new labor actors,” such as civil society organizations, in workers’ representation. Previous work found their increasing tendency to cooperate with unions, opening these up to inclusion of precarious workers. Praising these cooperative relations, research has understated other interactions that might develop between labor actors and their contributions to workers. Focusing on the relations among new labor actors and unions in the context of Israeli corporatism, this article analyzes conflictual interactions among labor actors and their implications of these for union legitimacy as well as for workers’ representation. Comparing two cases—of noncitizen Palestinian construction workers, and of subcontracted cleaning and security workers—the article argues that “conflictual complementarity” persists in the relations between labor actors in corporatist contexts. Conflictual complementarity is identified as based on sectoral traditions, contributing to transformations in union representation of precarious workers.
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Traditional living wage research has been the purview of economists, but recently contributions from the field of work psychology have challenged existing perspectives, providing a different lens through which to consider this issue. By means of a narrative interdisciplinary review of 115 peer-reviewed journal articles published between 2000 and 2020, we chart the transitions in the field with attention shifting from macroeconomic and econometric lens largely concerned with the costs of living wage policies, to a more person-centric lens focusing on the employee and their family. Synthesizing prior study, we outline five key themes: consequences for individuals, organizations, and societies; changes in operatio-nalization; exploration of different contexts; study of social movements; and the history of the topic. We outline the importance of work psychology in developing the living wage debate through more inclusive definitions, and novel operationalization and measurement, thereby providing fresh insights into how and why living wages can have a positive impact. Critically, we outline the redundancy of simple study of wage rates without understanding the elements that make work decent. We raise key areas for further study, and this topic presents a significant opportunity for psychology to shift focus to impact upstream policy by providing new empirical evidence, and challenges to structural inequalities. ARTICLE HISTORY
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Die Stärkung der sozialen Dimension der europäischen Integration ist nach Jahren des sozialpolitischen Stillstands und der verheerenden Eurokrisenpolitik wieder auf die Agenda der EU gerückt. Das Bekenntnis zur sozialen Dimension der europäischen Integration allein sagt aber nur wenig darüber aus, wie ein sozialeres Europa genau aussehen soll und wie dieses Ziel erreicht werden könnte. Beide Fragen stehen im Mittelpunkt dieses Beitrags. Ausgehend von einer Analyse des Potenzials europäischer Sozialpolitik schlage ich eine Reihe von Maßnahmen vor, die auf eine Stärkung der Säulen des europäischen Sozialmodells zielen: den Wohlfahrtsstaat und die institutionalisierten Arbeitsbeziehungen – die großen, in Institutionen gegossenen historischen Klassenkompromisse des 20. Jahrhunderts.
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Le 14 janvier 2020, la Commission européenne a lancé une initiative visant à mettre en place des salaires minima décents en Europe. Prenant appui sur un examen du concept de « living wage », cet article analyse la manière dont les récentes initiatives nationales d’augmentations substantielles du salaire minimum dans plusieurs États membres de l’Union européenne et celle de la Commission pour mettre en place une politique de salaire minimum européen pourraient se renforcer mutuellement et déboucher, au final, sur des salaires minima décents en Europe, garantissant aux travailleurs un niveau de vie décent. Compte tenu des différences substantielles de régimes de salaire minimum et de traditions en matière de protection sociale entre les États, cet article adopte une approche pragmatique, et établit le seuil de pauvreté laborieuse à 60 % du revenu médian national pour une personne travaillant à temps plein, ce seuil permettant de définir des salaires minima décents en Europe.
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This article critically evaluates the mixed fortunes of the Living Wage in the UK since its introduction in London nearly 20 years ago. The evidence shows that the gains in hourly pay have been significant, and have been achieved at little or no cost to jobs or working hours. An adequate living wage is therefore a necessary factor in reducing labour market inequality and eradicating in-work poverty. However, the UK case demonstrates that a living wage is not a sufficient factor in the absence of both a coordinated approach for universal implementation and linkages with effective collective bargaining. Poor coordination explains the very low proportion of low-wage workers covered by a voluntary Living Wage. Weak links with collective bargaining mean that even where a Living Wage is introduced by a low-wage employer, further positive wage ripple effects (e.g. by sustaining wage differentials) are rare. The argument advanced here is that while employers increasingly perceive voluntary accreditation with the Living Wage Foundation as an important symbol of ‘business ethics’, the Living Wage remains a relatively isolated wage-setting instrument in the UK. This is the result not only of the voluntarist nature of the campaign but also of the limited scope for direct interaction with other wage-setting mechanisms in the UK, despite evidence of positive complementarity between a living wage and collectively bargained pay structures. The article concludes by exploring different mechanisms through which the Living Wage could be extended and embedded across low-wage labour markets.
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The introduction of the minimum wage in Germany in 2015 is widely regarded as a success because it has led to substantial wage increases for low wage workers with minimal negative consequences for employment. However, there is a growing public debate in Germany that the current minimum wage level of € 9.19 per hour is far too low and should be increased substantially towards a living wage level of at least € 12 per hour. Such an increase would be a far-reaching intervention into the German system of wage setting and collective bargaining and would directly affect nearly one-third of the German workforce. Finally, an increase towards € 12 would also mark a break with the current adjustment mechanism according to which the minimum wage should follow mainly collectively agreed wages. © 2019, ZBW and Springer-Verlag GmbH Deutschland, ein Teil von Springer Nature.
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Abstract Purpose – This paper presents an account of the UK campaign for the voluntary Living Wage, an example of civil regulation. The purpose of this paper is to identify and characterize the actors involved in the campaign, describe methods used and examine direct and indirect consequences of the campaign. Design/methodology/approach – A mixed-method design is employed, reflecting the broadly framed purpose of the research. The research used semi-structured interviews with campaigners, union representatives and employers, observation of campaign activities and the creation of a database of Living Wage employers. Findings – The campaign originated in the community organizing movement, but has involved a broad range of labor market actors, both “new” and “old.” A continuum of campaigning methods has been used, stretching from community mobilization to appeals to employer self-interest and corporate social responsibility. The campaign has recruited 3,000 employers, led to wage increases for thousands of workers and registered indirect effects by shaping the policies of governments, employers and unions. Originality/value – The research presents a novel account of the UK’s distinctive Living Wage campaign, a notable example of the civil regulation of the labor market. Keywords Trade unions, Civil regulation, Civil society organization,
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Minimum wage is one of the most debated issues in the labour policy area. Often perceived as a trade-off between employment and equality in earnings, the debate on minimum wage is highly polarized. With regard to the undergoing discussions on the Social Pillar of the European integration, we aim to extend the debate to include the aspect of minimum living standards, by empirically showing the gap between minimum wages and the minimum living wages in the peripheral countries of the European Union. JEL Classification: J39
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This manual describes a new methodology to measure a decent but basic standard of living in different countries and how much workers need to earn to afford this, making it possible for researchers to estimate comparable living wages around the world and determine gaps between living wages and prevailing wages, even in countries with limited secondary data.
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The development of service economies in the Western world has led to a debate on the quality of new service jobs as many are low-wage jobs with poor working conditions and career opportunities. Although the incidence of low-wage service work is somewhat lower in the Nordic countries than elsewhere in Europe, it is increasingly addressed and debated. Employees find it hard to make a living from their job and to work the working hours requested, whereas employers find it hard to attract and retain employees. This article introduces the concept of ‘living hours’ to capture the segmentation processes in low-wage service work in the private sector of Denmark, Norway and Sweden. The concept of living hours is used to explain developments in low-wage service jobs that are not explained by the concept of a living wage. On the basis of cross-sectional data from the European Labour Force Survey, the article demonstrates how the increasing use of part-time and Sunday work since the crisis interacts with the increasing shares of young workers and migrant workers. The analysis focuses on retail and hotels/restaurants, which employ the majority of low-wage service workers in Denmark, Norway and Sweden.
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This article contributes to the growing debate on minimum wage coordination at European Union (EU) level. We consider the introduction of a hypothetical EU-wide minimum set at 60 percent of the median wage in each European country; we compare the diverse minimum wage-setting systems across Europe and discuss how they could be affected by such policy. The institutional impact of this European common threshold would be larger in those countries where minimum wages are currently collectively agreed by social partners than in those countries where they are set by statutory regulation. But according to our statistical analysis, such EU-wide minimum wage would affect a larger proportion of the workforce in those countries with statutory minimum wages, since they tend to have a larger low-paid segment of employment.
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A detailed report by the Women's Educational and Industrial Union of Boston in 1998 revealed that many workers were earning hourly wages far below a "living wage." Employing what they called the "self-sufficiency standard," the activists succeeded in pushing the Boston City Council to pass a living wage ordinance. What many living wage activists did not realize is that this was not the first time the Women's Educational and Industrial Union had been involved in a campaign for living wages. In 1911, the organization released another report, profiling the incomes and expenditures of 450 women workers in Boston. The following year, Massachusetts became the first state to pass a minimum wage law. This is just one example of the many links between the current campaign for living wages and struggles from the past. Labor historians and today's activists have much to learn from one another in this fight for living wages that has been a mainstay of the U.S. labor movement.
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Debate among labor economists on the pros and cons of a minimum wage law has come to focus on whether labor markets are competitive or monopsonistic. Using principles and concepts of institutional economics, the author argues that this perspective on minimum wages is too narrow. In particular, he uses institutional theory to develop four theoretical rationales for minimum wage legislation: setting a floor on wages to offset imperfect competition and inequality of bargaining power; promote macroeconomic stabilization and full employment; contribute to long-term efficiency and growth; and incorporate labor market externalities and social costs of labor. One revisionist implication is that a minimum wage under plausible conditions may increase economic efficiency even in a purely competitive labor market.
Article
A number of countries worldwide provide for a statutory minimum wage. Generally speaking, however, it is not a living wage, although the right to a living wage is guaranteed in a variety of agreements under both international and European law. The Council of Europe’s European Social Charter (ESC), for example, codifies a living wage and, according to the case-law of its supervisory body, the level of 60 per cent of the net average wage is to be taken as the basis for appropriate remuneration. This article argues that the Charter of Fundamental Rights of the European Union also incorporates the right to a living wage, which should be at least 60 per cent of the net average wage. The Charter is legally binding for EU institutions, agencies and other bodies. Member States are bound only to the extent that the material scope of the relevant EU laws has been opened, which is the case when EU law is implemented or when obligations arising out of specific Union legislation are required for the relevant subject area, as will be explained in the article. In purely national situations nevertheless, values laid down in international law have to be observed when interpreting national laws.
Article
This article provides a chronological account of the Slovenian trade unions’ successful campaign to turn the statutory national monthly minimum wage into a living wage. The campaign led to a 23 per cent increase in the minimum wage and a change of its adjustment mechanism in 2010 and successive changes to its definition. The analysis starts with a historical overview of minimum wage developments in Slovenia and an account of the events prompting trade unions to launch their campaign. Reviewing the impact of the 23 per cent minimum wage increase, the Slovenian experience shows that turning the monthly minimum wage into a living wage does not necessarily lead to negative macroeconomic effects in terms of reduced growth or increased unemployment. The example of Slovenia furthermore illustrates that, even though the campaign was not explicitly couched in terms of a living wage campaign, the trade unions managed to adapt key elements of the living wage concept to the country-specific institutional context.
Article
Translating the concept of a living wage into a cash figure presents a number of challenges. A recent review of the approaches used in the UK explored these, with the aim of creating a unified and improved calculation. Designing a living wage relies on some technical decisions, such as which data sources are most appropriate. But many of the building blocks underlying a living wage require judgements on societal values, expectations and norms. The living wage rates in the UK are voluntary and promoted by campaign groups; this means any methodology needs to be empirically sound but also recognise the realities facing employers. No perfect approach can exist. But through analysis, consultation with stakeholders and a clear governance structure, the method used in London and the rest of the UK offers a robust, respected and up-to-date way to calculate the income needed to meet a decent standard of living.
Chapter
Today, many people agree that the EU lacks solidarity and needs a social dimension. This debate is not new, but until now the notion of a 'social Europe' remained vague and elusive. To make progress, we need a coherent conception of the reasons behind, and the agenda for, not a 'social Europe', but a new idea: a European Social Union. We must motivate, define, and demarcate an appropriate notion of European solidarity. We must also understand the legal and political obstacles, and how these can be tacked. In short, we need unequivocal answers to questions of why, what, and how: on that basis, we can define a clear-cut normative and institutional concept. That is the remit of this book: it provides an in-depth interdisciplinary examination of the rationale and the feasibility of a European Social Union. Outstanding scholars and top-level practitioners reflect on obstacles and solutions, from an economic, social, philosophical, legal, and political perspective.
Book
This book tells the story behind President Franklin D. Roosevelt’s use of the phrase "living wage" in a variety of speeches, letters, and statements, and examines the degree to which programs of the New Deal reflected the ideas of a living wage movement that existed in the US for almost three decades before Roosevelt was elected president. Far from being a side issue, the previously unexplored living wage debate sheds light on the New Deal philosophy of social justice by identifying the value judgments behind its policies. Moving chronologically through history, this book's highlights include the revelation of a living wage agenda under the War Industry Board (WIB)'s National War Labor Board (NWLB) during World War I, the unearthing of long-forgotten literature from the 1920s and 30s that formed the foundation of Roosevelt's statements on a living wage, and the examination of contemporary studies that used a simple living wage formula combining collective bargaining, social insurance, and minimum wage as a standard for social justice used to measure the impact of New Deal polices.
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Der über Jahrzehnte in Westdeutschland gültige Trend zu Wachstum und Stabilität der gesellschaftlichen Mitte, wesentlich getragen durch gesicherte Arbeitsverhältnisse und steigende Löhne in den industriellen Kernsektoren, ist spätestens seit der Jahrtausendwende gebrochen. Damit schwindet auch die historische Errungenschaft, dass ein Erwerbseinkommen, nämlich das des Mannes, eine Familie ernährt. Als neues Leitbild in Zeiten flexibler Arbeitsmärkte und steigender Frauenerwerbstätigkeit wird das Zweiverdienermodell, bzw. Erwerbstätigkeit für alle, propagiert. Aber lässt sich die sozialstaatlich gestützte männliche Ernährernorm so leicht verabschieden? Und wie könnte eine Erwerbseinkommensnorm für Männer wie Frauen aussehen, die veränderten Familienformen und wachsender Dienstleistungsbeschäftigung Rechnung trägt?
Article
The notion of Social Europe is usually taken to entail the payment of fair wages, defined as at least a minimum sufficient for a decent standard of living. In all European countries there is some regulation of minimum wages, either by law or by collective agreements. However, the value of minimum wages in Europe differs significantly both in absolute level and relative to average or median national wages. Moreover, some national systems of wage regulation have proved ineffectual in preventing the growth of employment paying below the minimum. Against this background there is an ongoing debate on the possibility and desirability of a European minimum wage policy. This article gives an overview of national minimum wage regulation and discusses the opportunity for and resistance to the introduction of a coordinated minimum wage policy at European level.
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Methodology of Economics nomic themes represent well-known principles. His argument that scarcity is an inalterable condition sounds much like the poor will always be with us. His urging applied economic research and analysis to improve material conditions perhaps means that we should show the poor due concern. His advocacy that incentive effects should be maximized might be taken to mean that we should not muzzle the ox treading out the grain. His support for private-property rights sounds much like Nehemiah's lament that we are powerless when others own our fields and vineyards. Underlying faith may be the greatest value of Pejovich's capitalism-versus-socialism dialectic. As he describes these grand organic movements groping toward improved soci-ety, Pejovich gives witness to ontology, teleology, and eschatology that is fundamentally moral. While the faithless conjecture about post-peopled worlds, Pejovich's concern is the striving of people who are originated, designed, and carried along toward an end we are compelled to discern as the movements of God. —Nelson P. Miller Northampton, Massachusetts: Edward Elgar, 2008 (163 pages) "Economists care more about markets than they do about the poor." So say many critics who believe that economists long ago abandoned humane values in favor of the invis-ible hand. They should be encouraged to read this book. Stabile traces the history of a living wage from Adam Smith to the current debate about whether employers, workers, or the government should pay for health care. After all, healthy workers presumably are more productive. Readers of this book will discover how much importance economists have always attached to poverty. They will also better understand the practical, political, economic, and moral dilemmas that must be addressed before the living-wage movement can gain widespread support. This book is a careful exercise in clarifying the issues surrounding the question of whether communities (and whole societies) are morally responsible for ensuring that wage rates exceed a certain norm. The debate about a living wage is an extension of the age-old search for a just wage. Both are closely related to the matter of a legal minimum wage. Stabile organizes his discussion of economic reasoning about a living wage along three dimensions: sustainability, capability, and externality. This is very helpful because it allows for a comprehensive treatment of the key reasons why economists have been concerned about low-wage rates from Adam Smith to the present. Throughout, Stabile compares the assumptions and thinking of moral economists with those of market economists.
Article
A bstract Adam Smith was a proponent of living wages for labor for reasons of growth and for reasons of equity. There is ample evidence in the body of Smith's work to support the thesis that Smith would support public policies that might ensure the achievement of a living wage. The argument rests, in part, on the conclusion that Smith had reservations concerning the ability of the economy to experience sufficient growth and the ability of growth, if achieved, to secure living wages. This article argues that, given Smith's views about justice and given Smith's ideas, as part of the Scottish Enlightenment, of how the rules of justice evolve, a living wage law could be one of the general rules of which Smith could approve.
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Drawing upon both prospective and retrospective evidence, this paper reviews the economic effects of local living wage ordinances. I concentrate my attention on the higher costs these measures create for covered firms, as well as their budgetary implications vis-à-vis cities that adopt them. I also briefly review the effect that living wage laws have had on bidding environment for city service contracts. Based on a range of cost estimates associated with living wage laws, I then examine the adjustment channels firms are likely to pursue when adjusting to higher labor costs, including: raising prices; increasing firm productivity; redistributing income within the firm; laying off employees; and relocating out of the area covered by the living wage mandate.
Article
Keynesian economists hold it to be self-evident that business cycles are characterized by involuntary unemployment. But construction of a model of the cycle with involuntary unemployment faces the obvious difficulty of explaining why the labor market does not clear. Involuntarily unemployed people, by definition, want to work at less than the going wage rate. Why don’t firms cut wages, thereby increasing profits?
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