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page 179 chapter VI
works full-time must be able to live a life of dignity for
their efforts! I reject a Europe where low social and
labour standards are a competitive advantage. Here,
too, I advocate quality.
The argument that poverty wages prevent job cutbacks
does not hold water. That kind of policy is not
only cynical, it also has a negative impact on the productivity
of our national economy. Minimum wages
put an end to the competition for the lowest pay. And
although minimum wages were introduced in the
United Kingdom and Ireland some years ago, the rise
in unemployment predicted by many economic institutes
has not occurred. On the contrary, the resultant
increase in purchasing power has had positive effects
on employment.
Certainly, a standard minimum wage across Europe
will not work – the economic situation in the 27 EU
Member States is too different for that. Instead, the
aim should be for all Member States to introduce a
minimum wage level of more than half the respective
national average wage. This can be done both through
legislative channels and by agreement between the
social partners.
The social gap must not be allowed to grow even wider.
In this respect, I welcome the initiative of the EU
Commission for regulating the salaries of top earners.
Pay policy should call on the management board
to examine the development strategy of the company
for sustainability. The “pay-for-performance” principle
should, however, not lead to greater willingness
to take risks, but to more transparency and to better