Minimum wages through collective bargaining
Collectively agreed minimum wages and Convention No. 131
Convention No. 131 does not solely refer to statutory minimum wages. Minimum wages may in fact be fixed by giving the force of law to provisions of collective agreements. This does not require collective agreements to be extended so that they apply to all workers and employers in a specific sector or to all branches of activity in a country. The requirement is only for negotiated minimum wages to be legally binding on the parties.
However, the provisions on the scope of application of minimum wage systems – which according to the Convention should cover “all groups of wage earners whose terms of employment are such that coverage would be appropriate” – should be taken into account.
For example, the situation in Austria or Belgium, where the coverage rate of collective agreements exceeds 90 per cent of wage earners, is very different from that of other countries where the coverage rate is much lower. The extension of collective agreements can play a useful role in reducing the number and groups of wage earners not protected by minimum wages.
Source: ILO General Survey 2014
However, the provisions on the scope of application of minimum wage systems – which according to the Convention should cover “all groups of wage earners whose terms of employment are such that coverage would be appropriate” – should be taken into account.
For example, the situation in Austria or Belgium, where the coverage rate of collective agreements exceeds 90 per cent of wage earners, is very different from that of other countries where the coverage rate is much lower. The extension of collective agreements can play a useful role in reducing the number and groups of wage earners not protected by minimum wages.
Source: ILO General Survey 2014