Northern European Welfare States 'Oppose' EU Minimum Wage Introduction

[Asia Economy Reporter Naju-seok] Controversy is brewing over the introduction of a minimum wage at the European Union (EU) level. In Nordic countries such as Denmark, there are concerns that forcibly introducing a minimum wage system could negatively affect the established collective bargaining-based negotiation methods.

According to foreign media on the 12th (local time), politicians from Nordic countries are opposing the EU Commission's (EC) push to introduce a common minimum wage across the EU. They worry that the introduction of a minimum wage could lower the actual wages of minimum wage earners in Nordic countries.

Peter Hummelgaard Thomsen, Denmark's Minister of Employment, told the UK Guardian, "I support the intention to introduce a minimum wage system for European workers," but added, "The ways to achieve such policy goals should respect the models that are already working well in each country." He stated, "In Denmark, wages have been determined through negotiations between labor unions and employer organizations for over 100 years."

Denmark has an average hourly wage of 43.5 euros (55,900 won), and even the lowest-paid workers receive at least 15 euros, maintaining one of the highest wage systems in Europe. Even those not unionized could receive wages decided through collective bargaining. However, if a minimum wage is introduced, the minimum wage could become the baseline for wages rather than agreements between labor and management, potentially resulting in lower wage conditions than those determined through the existing collective bargaining system.

Denmark is requesting that even if a common EU minimum wage system is introduced, the collective bargaining method that Denmark has applied so far be recognized as an exception. Finland and Sweden are taking similar positions.

For now, Denmark has received a stance from the EU that the Dutch labor-management negotiation system will be respected, but there are still concerns about whether the details will be properly maintained.

The introduction of a minimum wage is a system actively promoted by Ursula von der Leyen, the EU Commission President whose term began at the end of last year. President von der Leyen has expressed the view that a minimum wage is necessary to prevent the 'brain drain' of Eastern European workers seeking employment in Western Europe. Among the 28 EU countries, six?including Denmark, Finland, Sweden, Austria, Italy, and Cyprus?have not introduced a minimum wage system.

This content was produced with the assistance of AI translation services.