Do you favour a European minimum wage? Why?

Question

The minimum wage varies by a factor of 1 to 4 between member states. Some argue that this is justified because of differing economic situations and stimulates Europe's economies. Others that it creates unfair competition between EU workers.

Would you be in favour of an EU-wide minimum wage? And what benefits or problems could such a policy bring?

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Answer 1

At present you may feel that it is not necessary.But in the long run it is essential.When all the EU members target for common rate of inflation,it is essential cost should also be identical.If you want to have common inflation rate and wage rates differ,those countries which are having higher wage rates will suffer.Their products will be less competitive and it will have disastrous effect on the economy.Further common wage rate will stop migration of labour among the EU members.It will facilitate economic integration of members of EU.
The difficulty is in implementation.There will be resistance in countries where wage rates are at present high.Where wage rates are low,huge funds are required for increasing wage rates.There should be transition mechanism.Countries where wage rates are high should increase taxation(income-tax) and pool the funds to assist countries where wage rates are low to subsidise increasing wages.Or income tax rates in such countries have to be lowered.This mechanism should be continued till reasonable wage equation is achieved.

Answer 2

Yes, I would be in favour of a minimum wage which is the same for all EU member countries. This would be a sign of fairness and reduce the amount of economic migrants. Many of these do come to countries with higher wages and work there in very lowly jobs, even though they have higher qualifications from their own countries, but cannot find suitable positions there.
It does not look well on the EU when engineers and academics from poorer member states have to work as cleaners and kitchen helpers in richer states, in order to earn a decent living. This also is counter-productive for the EU as a whole, as it prevents the poorer and lesser developed member states from catching up with the more developed countries in the Union.

I do see the potential problem at the beginning, when many companies (and even the public sector) in the poorer states might not be able to cope easily with the new minimum wage.
For that reason I would suggest the introduction in a gradual way, with an absolute minimum for everyone, which then is raised over a number of years along a fixed scheme. The EU Commission should provide a certain amount of extra money (perhaps from the Structural Fund) for the poorer member states in order to make the introduction of the Europe-wide minimum wage more feasible and practical.

Answer 3

If it means me!, and all pensioners getting a basic pension of more than 85 pounds a week I am in a big favour of it. I take it that more money would be paid into the pension fund with higher wages. However no one PARTY seems concerned about us being paid under the poverty line,for a life time of contributions!
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As far as economics are concerned it is well justified . Most retail goods cost more in the poorer country's than they do in UK or the same.
We all use the same essential goods. why drag it out over many years causing hard ships to so many people. Just get on with it.
I say i`m in favour and give every one a level playing field.
In the beginning some would complain. I remember when we first got a minimum wage. It was the right thing to do then and is the right thing to do now.

Answer 4

It's a rubbish idea. Each country has a different population, different economies and different types of industry. The UK has a reasonably high manufacturing output, whereas France is largely agricultural.

You can not expect two completely different types of national industry to yield the same sort of growth, and therefore to have a set European minimum wage becomes unsustainable. Another point is that in Poland, companies could be forced to pay a wage they simply can not afford. On the flipside, what if the UK minimum wage was to be driven down? Not only would the difference between income and cost of living widely increase, but tax revenues would also fall which is to the detriment of public services. Do you raise taxes? No, because you push up the cost of living i.e. inflation further, which only serves to harm the economy.

Answer 5

A European minimum wage makes sense, then people can stay in their own towns for work and not all crowd into England although I really do not know why they go there as the wages are poor in England and there was no way I could manage on £5.50 per hour and I always had to work 2 or 3 jobs to achieve the kind of money I needed. I am not currently in England I have 2 jobs at the moment and I usually find working 2 jobs abroad usually gives me better income as the bills and food prices lower. But I definately think the minimum wage should be £10per hour as this buys so little. £2 per day bus fares and one cup of coffee at coffee republic is £2.99 I would have to work one hour to cover these very basic things.

Answer 6

No, the cost of living also varies by a similar factor. Applying a high minimum wage would be disastrous for poorer countries, and applying a low minimum wage would basically be the same as abolishing it in richer countries. Even within larger countries such as the UK, France, Germany and Italy, there are wide discrepancies in living costs between regions, so even a national minimum wage is difficult to set, never mind one for the whole EU.

Answer 7

One problem is the different cost of living in different countries, although Europe is gradually stifling all individualism between countries, there are still differences, and this will seriously destabalize that country's economy.

Lets use England for an example, the cost of living in this country is already almost prohibitively expensive, especially for those on a minimum wage. Our government needs to raise this now so we can basically afford to live, not that they will.

But if the European Union decided to bring in an 'average' wage for all countries (some of which are decidedly poorer than others, especially with Eastern Europe,) then this will keep this wage low or even lower it, and we will not be able to afford to live in this country. We barely can now.

What right does a superstate have to decide the fate of many soveriegn countries anyway? Hitler was defeated 60 years ago FOR A REASON!!!!

Answer 8

It isn't a bad idea in itself, the problem lies in the fact that the cost of living is a variable factor in every country. Basically, I'm saying it's impossible while there are irreconcilable differences as to what we pay for something within different member states.
I too defend the idea that minimum wages may be counter-productive in the sense that many people will tend to idleness since they know they've got the minimum and don't make any effort to improve their work. The disparity between states and their minimum wages implies a more or less fair competitiveness them. Some differences need to be kept unless the whole structure is changed, which would be difficult though feasible in a gradual manner.

Answer 9

I initially thought it was a stupid idea, but if there is a variance of 1 to 4...... It will be nowhere as flexible as minimum wages chosen by Governments themselves, but it will help in integrating Europe into a single economy. Most EU countries now use the euro, so why not a European wage? Furthermore, it will make business across Europe much easier if there is one wage (albeit a little variance), cutting down costs in bureaucracy and encouraging business by making things simpler. It will also mean that the minimum wage will be free from petty fighting between parties in national politics, allowing the right decision to be taken.

Answer 10

Look.If you have one economy but some states can compete by paying their employers less than a decent minimum wage the low wage workers in The wealthier European countries are going to suffer.It is unfair competition.
We shouldn't lower our social standards to that of Eastern Europe.They should elevate theirs to ours.
There is free traffic of products and services which means for example a Polish company with Polish workers can do a job in Belgium.No social competition.
If you don't have a unified minimum wage I reject a unified economy as well.The alternative is that decent European minimum wages come under pressure because employers can point to other regions in the Euro zone where they would be much cheaper of.
This is an example how Europeans feel the EU caters more to big business and companies than to the citizens..

Answer 11

Although I'm in favour of a minimum wage, I feel that the figure set should reflect the particular set of circumstances, for the relevant country's economic situation.

For example, to set a minimum wage that is realistic in Germany or Britain, would be inflationary in Romania or Greece.

If this is another step on the route to the equalisation of pay and conditions of workers throughout Europe, I am absolutely against it.

Trying to manipulate labour in Britain, to compete with those from poorer economies is redundant.

The ultimate example of this is trying to get a worker from Britain, to compete with a worker from China , who is going to work a whole month for pennies.

It's just not viable, and proves that the EU's policies have been hijacked by big business.

The EU should be using it's offices to find ways of improving the lives of it's citizens, but in the case of Britain, it seems hellbent on reducing the lives of it's citizens.