“The Commission welcomes the ruling handed down today by the Court of Justice of the European Union, which largely confirms that the directive on adequate minimum wages has a solid legal basis,” the institution stated in a communiqué, responding to the case initiated by Denmark, which contests this community legislation.
According to the community executive, “adequate minimum wages are essential for social justice and a productive and inclusive economy” as “they contribute to protecting the purchasing power of workers, reducing wage inequalities and in-work poverty, supporting domestic demand, and strengthening work incentives,” as well as “bridging the gender wage gap.”
Cited in the note, European Commission President Ursula von der Leyen emphasizes that “all workers in Europe should be able to make a living.”
“Today’s ruling is a milestone for Europeans – it’s about dignity, fairness, and financial security. The directive will be implemented with full respect for national traditions, the autonomy of social partners, and the importance of collective bargaining,” the leader states.
The issue at hand is a European directive on minimum wages, adopted three years ago, which mandates that all EU countries ensure fair and adequate wages, defined based on objective criteria (such as cost of living and productivity), and strengthen collective bargaining to improve wage conditions.
Specifically, member states must establish transparent and reliable mechanisms to set adequate minimum wages, without setting a common minimum value for the EU, given wage disparities.
The CJEU confirmed today the validity of most of the community directive on the minimum wage, which Denmark contests, ruling out any direct interference in national competence.
“The Court of Justice confirms the validity of much of the Directive on adequate minimum wages in the European Union,” reads a press release from the institution.
The court denies Denmark’s claim of interference, explaining that “the exclusion of competence only applies to direct interference of Union law in the determination of remuneration and union rights.”
In particular, the Court of Justice concludes that the directive “does not constitute a direct interference of Union law in the right of association and unionization,” as explained in the CJEU communiqué, also indicating that “it equally rejects the ground invoked by Denmark based on the directive having been adopted with an incorrect legal basis.”
The directive in question, from 2022, establishes rules ensuring the existence of a regularly updated national minimum wage but does not set any amounts.
