SUBJECT: THE EC PROPOSAL FOR A FRAMEWORK DIRECTIVE ON MINIMUM WAGES

SUBJECT: Proposal by the European Commission for the adoption of an EU framework directive on minimum wages

DEAR MR. PRIME MINISTER,

The EU Council is due to discuss the European Commission's proposal to adopt an EU framework directive on minimum wages and collective bargaining. Together with BusinessEurope - the most representative organization of business and employers at an European level, of which BIA is the only member of the Bulgarian side, we declare a strong position against the regulation of minimum wages and collective bargaining through the EU directive.

In this regard, we call on you to support the position that any EU initiative on minimum wages must fully respect the national competence of the responsible public authorities and the autonomy of the social partners in setting wages, a principle regulated in a clear and unambiguous manner by the functioning of the EU.

We note that the EC declares that its aim is to support the social dialogue and collective bargaining in the EU and that it has found a way to protect the autonomy of the national social partners in terms of wage negotiations. In fact, accepting the proposal would lead directly to the opposite negative result.

The adoption of a European directive removes the necessary guaranteed protection of the autonomy of the national social partners with regard to wage setting. The very adoption of such a legally binding text means that Member States will have to transpose the directive at a national level and that the Court of Justice will have jurisdiction over fully national and sectoral collective agreements. This undermines a key feature of social dialogue in Europe - independent collective bargaining between employees 'and employers' representative organizations.

European companies face an unprecedented challenge to survive the crisis caused by Covid-19. Instead of supporting the EU economy to recover quickly and on a large scale, such an EU directive will weaken employment opportunities in economically depressed areas and the most vulnerable social groups, as well as increase productivity.

Minimum wage setting mechanisms should not be politicized and used as a tool for social assistance. The salary is intended to compensate the work in its results and quality, as defined by the Constitution of the Republic of Bulgaria. Labor productivity and the improvement of the position of national production in value chains should be the main drivers of wage growth.

In this regard, we call on you to state and strongly stress the nationally responsible position - the EU should choose more appropriate ways to address this sensitive issue for business and people at work, in particular by adopting a Council Recommendation.

WITH RESPECT,

/ п /

RADOSVET RADEV

Chairman of the Board of BIA