The industrial relations observatory EIRO reports that the social partners in Portugal have agreed on significant increases to the national minimum wage over the next five years. This is the first time tripartite talks have produced this kind of agreement and the 4.4% increase to the minimum wage for 2007 will be the highest in real terms since 1992. Inflation for 2007 is forecast at 2.1%. Over the five-year period 2007-2011 the agreement provides for increases averaging 5.3% a year.
Read more at > EIRO (EN)
Five-year agreement on minimum wage
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Effectiveness of minimum wages in collective agreements
The GPA-DJP services union has underlined the effectiveness of relying on minimum wages in collective agreements. A recent report by the Hans Böckler-Stiftung in Germany notes that Austria has one of the smallest percentage of low-paid workers in Europe. This is down to the very high level of collective bargaining coverage with most sector agreements having a monthly minimum salary of at least €1300, several with €1400 and with unions pushing for a €1500 minimum. Trade unions still need to work on some areas of the economy where workers are not covered by collective agreements as well as
Legal backing for minimum wages in collective agreements
New legislation will come into effect next month that will impose tougher sanctions on employers who fail to pay the minimum wage that has been negotiated in their sector. Restrictions on migration to Austria from the EU Member States in central and Eastern Europe will end at the beginning of May and the ÖGB trade union confederation argued for the new law on minimum wages to ensure that neither domestic nor foreign employers could exploit the opening of the labour market to avoid paying collectively agreed minimum wage rates. [Read more at > GPA-DJP (DE)->http://www.gpa-djp.at/servlet