EU: Companies with more than 100 employees must disclose wages to make pay gaps visible

Publicerad denFörfattareIngo Geiger

The European Council, the Commission and the Parliament have agreed on the main points of the new EU Pay Transparency Directive. The directive aims to end the pay gap between women and men. In the future, companies with more than 100 employees will have to publish average salaries for the same work or work of equal value. Gender pay gaps must be eliminated in cooperation with social partners. Otherwise, there is a threat of fines. 
“Today is a good day, not just for women, but for all workers,” says Evelyn Regner, vice president of the EU Parliament. She has fought for years for the EU directive for pay transparency. In December, the European Council, the EU Commission and the Parliament have now agreed on the most important points of the directive. An essential step, because in Europe, women still earn on average 14 percent less than men in comparable positions. 
Employees gain insight into wage levels
Above all, a lack of transparency makes it difficult to reduce the gender pay gap. It is considered one of the main obstacles. The new directive aims to change that. In the future, all employees of a company will be able to see the wage structures of their colleagues—at least for people who do the same or comparable work. It does not matter how large a company is. 
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Information about individual wages or the average wage for the same or comparable work forms the basis for fair pay regardless of gender. After all, this is the only way to make discriminatory wage differences visible and correct them through complaints or legal action. 
“With the new law, we have made good progress towards reducing the gender pay gap and ensuring that all employees in Europe receive the same pay for the same work or work of equal value” Evelyn Regner, Vice President of the EU Parliament. 
Companies must disclose any wage differentials between male and female employees
Companies with more than 100 employees must make wage structures publicly available and report them to a monitoring body. It must be made clear whether there are differences or pay gaps between the sexes. 
If the wage gap exceeds 5 percent, the company must develop and implement measures in cooperation with the social partners (e.g., employee representatives, trade unions). However, only if the difference cannot be attributed to objective factors. 
The disclosed data will make cross-industry comparisons possible. This will make the full extent of wage inequality (even) more visible. This will also increase awareness of the problem for employers and employees. 
Penalties and sanctions for violating the EU Pay Transparency Directive
The directive places greater responsibility on individual companies and EU member states. They must publish wage data, make it available to the public and the workforce, and report it to a monitoring body. In the event of violations, the companies concerned face fines. These are to be set and enforced by the member states. 
The newly gained transparency gives employees the opportunity to stand up for their rights from the outset. Companies that pay women and men unequally will have a harder time in the future. 
HR managers are no longer allowed to ask about applicants’ current salaries.
Wage inequality often begins in the job interview. Applicants are asked about their current salary, which then serves as the starting point for negotiations. This deepens gender pay gaps. With the new directive, HR managers will no longer be allowed to do this.
The EU-Parliament also agreed on a new directive to give platform workers more rights. Including minimum wage, social security and paid vacation. Läs mer…

EU Directive: Minimum wage, social security and paid vacation for platform workers

Publicerad denFörfattareIngo Geiger

Despite massive pressure from platform operators, the EU Parliament agrees on a directive for more rights for platform workers. In principle, they will be considered employees—with all employment and social security rights. That means: minimum wage, paid vacation, social security and benefits in case of illness and unemployment. The directive is set to end the precarious working conditions of platform work, make the algorithms used more transparent and bring 5.5 million people out of bogus self-employment. 
More than 28 million people in the EU currently work for a digital platform. They deliver food for Deliveroo, clean for Helping, or drive for Uber. The European Council expects that number to rise to 43 million by 2025. The vast majority work independently. It is estimated that 5.5 million of them are false self-employed. As a result, they do not receive the social and legal protection to which they are entitled by law. The new directive aims to change that. 
EU-Directive for platform work: More protection and rights for employees
Platform operators like to present themselves as the pioneers of flexible, modern and self-determined work. What sounds good on paper, however, creates precarious working conditions in reality. Almost 5.5 million people in the EU suffer from this. This is because they work as bogus self-employed workers, although according to the definition they should be employees. 
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They have no social security, no sick pay, no paid vacation and no collective bargaining. They struggle with irregular working hours, high workloads and constant availability. Platform operators are the main beneficiaries. 
“Protecting all workers in the digital age should be as easy as ordering food or a cab by smartphone. All employees are entitled to employee and social rights, i.e., fair pay, social security, sick pay and inclusion in collective bargaining. Agnes Jongerius, employment policy spokeswoman of the S&D Group.
With the new Directive on Platform Work, platform workers in principle will be employees—with all employment and social security rights. The burden of proof with regard to employment status will lie with the platforms in the future. This means that platform operators will have to prove that it is not an employment relationship but a self-employed activity.  
Are Platform workers employees?
The EU-Directive formulates control criteria that determine whether a digital work platform is an employer. If two of the following criteria apply, then this is the case:
Criteria that defines digital work platforms as employer

Determination of the amount of remuneration or setting of upper limits for remuneration.
Monitoring of work performance, including by electronic means (e.g., algorithms)
Restriction of the freedom to choose working hours or absences, to accept or decline tasks, or to use the services of subcontractors or substitute employees
Prescribing certain binding rules regarding appearance and behavior toward the recipient of the service or regarding work performance
Restricting the ability to build a customer base or perform work for third parties
If a digital platform is an employer, then the employees are entitled to full employment and social security rights. This includes the minimum wage (if there is one), regulated working hours and health protection, paid vacation, unemployment and sickness benefits, as well as a retirement pension and involvement in collective bargaining.

If a digital platform is an employer, then the employees are entitled to full employment and social security rights. This includes the minimum wage (if there is one), regulated working hours and health protection, paid vacation, unemployment and sickness benefits, as well as a retirement pension and involvement in collective bargaining. 
More algorithmic transparency
Many platform operators use algorithms to organize and control their employees. Yet most algorithms resemble a black box. Decisions they make are not comprehensible to those affected. Who is hired, who is terminated, how is performance evaluated, and who gets new assignments?
The new directive will make these processes more transparent. Employees should also be able to legally challenge automated decisions. In addition, humans will have to monitor the working conditions and not, as in some cases, algorithms. Above all, algorithms should not have access to the sensitive and personal data of employees (gender, origin, political views, trade union membership). 
The directive now comes to vote in trilogue with Council and Commission
A large majority in the relevant committee of the Parliament adopted the text of the directive. It will form the basis for negotiations in the upcoming trilogue with the Council and the EU Commission.  Läs mer…

Gas price brake, rent cap & tax-free food: Spain most successful in fighting inflation in the EU

Publicerad denFörfattareKontrast.at

Spain has the lowest inflation rate in the EU. What are the Spanish under Prime Minister Pedro Sánchez doing differently—and better? First and foremost, gas price caps and the rent brake are curbing prices. Next year, they will go one step further: VAT on basic foodstuffs will fall, making food cheaper in one fell swoop.
Left-ruled Spain now announced, at the end of December, the third major anti-inflation aid package this year to relieve the Spanish population from inflation. This package includes 10 billion euros, bringing the total amount that the government of Pedro Sánchez (of the socialist PSOE) has put in place since the beginning of the year to cushion inflation to 45 billion euros.
First, the aid package includes a one-time payment of 200 euros for about 4.2 million low-income households (up to about 27,000 euros) and an extension of tax cuts on energy bills for the first half of next year. In addition, all pensions are to be increased by 8.5 percent, and particularly low pensions by as much as 15 percent.
Success in Spain: lower electricity prices and the lowest inflation rate in the EU
There has already been direct aid, concessions on loans and price brakes: rents in the country may increase by a maximum of two percent per year. According to Sanchez, the aim is to ensure that aid reaches those who really need it.
In particular, the gas price brake, which Spain and Portugal were the first in Europe to introduce in May, proved to be an effective intervention to curb prices. Compared with November last year, electricity prices fell by over 22 percent. The gas price brake is in place for 12 months and ensures that gas costs a maximum of 50 euros per megawatt hour. By comparison, wholesale gas prices peaked at 1,000 euros per MWh in the summer.
Inflation over the past 12 months slowed to 6.7 percent in November. It is the lowest rate of the 27 EU member states.
Spain has the lowest inflation rate in the EU (photo: Eurostat)
Bread and milk tax-free: Sánchez government will reduce food prices
Currently, food prices are a thorn in the sight of the population, but also of the government. This is because they have risen by 15 percent compared with the fall of last year.
That’s why Spain’s government announced that it will reduce VAT next year on staple foods such as bread, cheese, milk, fruit and vegetables, and cereals from 4 percent to 0 percent. For pasta and cooking oils, the VAT will be cut in half to 5 percent, he said.
Sánchez also said he would extend subsidies for train commuters for another year and further limit rent increases.
However, the reduction in the price of gasoline for consumers:inside, except the transport industry, will be discontinued.
The result of the left-wing government’s policies: economic growth in Spain was more than 5 percent in 2022 and therefore even exceeded government forecasts. The country will be able to avoid a recession next year.
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