The new formula for determining the minimum wage is not good, said the president of the Confederation of Labour “Podkrepa” Dimitar Manolov. He told NOVA that he is not optimistic about a consensus between unions and employers that would lead to a minimum wage of and above 672 euros.
Manolov specified that he did not participate directly in the negotiations and did not follow the discussions in detail, but according to him, conceptual inaccuracies were made in the public debate. According to him, until now the state and the government have had the authority to determine the amount of the minimum wage alone, and the unions have been mainly a consultative party.
What does the new mechanism provide for
According to the Ministry of Labour and Social Policy and The parliamentary social committee approved the new mechanism for the minimum wage at first reading in the National Assembly. It is planned that the unions and employers will first seek an agreement on its size, and if they do not reach an agreement, the decision will remain with the government within a certain range.
Manolov also criticized the inclusion of labor productivity as a factor in determining the minimum wage. According to him, labor has a limited share in the final result of the production process and responsibility for all problems and failures in production should not be shifted to workers.
He pointed out that there would be grounds for such an indicator to be included in the formula if workers also participate in the distribution of profits.
The dispute over 672 euros
During the conversation, Manolov also said that he was not convinced that unions and employers would reach an agreement for the minimum wage to reach or exceed 672 euros. He defined such an outcome as possible at theory, but expressed doubt that this will happen in practice.
The Trade Union "Podkrepa" has already objected to the way in which the new model is set, and a statement from the union states that the organization does not accept that the cost of living be replaced by the cost of living per person in a household. According to the union, this is not an indicator that measures income from work.
The new formula for the minimum wage continues to cause controversy among the social partners, and its final adoption and implementation will still go through the next stages of the legislative procedure.
Sources: NOVA, Ministry of Labor and Social Policy, BTA, Trade Union "Podkrepa", National Assembly