Competition and Wage Regulation in the EU

Abstract

The following article analyses the complex relationship between competition and wage regulation within the European framework, examining how the CJEU, the European Council and the European Parliament have intervened in the field of pay. Taking into consideration the lack of EU competence on wage matters, as established by Article 153, para. 5, TFEU, it is possible to identify significant changes, especially with the 2022 Directive on Adequate Minimum Wages. The article examines both how the European Commission has addressed issues related to pay during economic crises and CJEU judgments such as RegioPost and Bundesdruckerei, illustrating how wages are seen as a competitive element in public procurement or, as in the Werhof and Alemo-Herron cases, how competition rules often prevail over wage protection. For these reasons, the Directive on minimum wages aims to solve the problematic balance between competition and social security. To achieve this goal, it is necessary to ensure the concrete, practical implementation of the Directive or a reform of the Treaty or the Charter of Fundamental Rights to recognise the right to a fair wage.