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18 Mar 2021 | Brussels

Oldřich Vlasák argues against minimum wage setting at the EU level

18 Mar 2021 | Brussels

Oldřich Vlasák argues against minimum wage setting at the EU level

TAG: Economy, Employment

During a debate on adequate minimum wages in the EU, ECR Vice-President Oldřich Vlasák wholeheartedly agreed that "fair and adequate wages is something we all desire for every European". Not only does work pay off to maximise people's participation in the labour market, but it also "ensures economic growth and is the best way to prevent social exclusion".

However, he cautioned against establishing a "one-size fits all for the EU", which would be a "big mistake". For Mr Vlasák, who also serves as councillor for the city of Hradec Králové in Czechia, fighting poverty and achieving adequate wages across the EU should be priority, but "we should let Member States decide to choose instruments that suit their needs".

There are disparities in the political, economic and social developments across countries, regions, and sectors and the cost of living varies greatly from one EU country to another. In light of these factors, policies should be tailor-made and based on "results and not intentions", argued Mr Vlasák. The introduction of a minimum wage in some countries could help to combat and reduce poverty, but in others it could serve to increase unemployment therefore making it "harder for young and low-skilled workers to find employment".

Mr Vlasák forwarded the legal argument saying that the ECR Group in the European Committee of the Regions (CoR) were surprised to read the Commission's proposal on "fair minimum wages" as the treaties "clearly say that wage harmonisation is not an EU competence" and therefore such proposal could breach article 153 of the Treaty on the Functioning of the EU.

The debate took place as part of the CoR's March plenary session with Mr Miguel Cabrita, Portuguese Deputy Minister of Labour and Vocational Training, as guest speaker.