The EU Minimum Wage Directive was adopted in 2022 and is a milestone of social Europe. It provides a framework for the adequacy of statutory minimum wages and the promotion of collective bargaining. Denmark disagrees with the directive and brought an action for annulment before the European Court of Justice (ECJ) in 2023, supported by Sweden. The ECJ is now examining the repeal of the directive. There are strong legal arguments in favour of maintaining it. Whether the ECJ takes up these arguments remains to be seen.

“High employment rates and signs of improvement for the youth”, this is how the European Commission advertises the current Quarterly Report on Employment and Social Developments in the EU. The Commission far too often paints a too rosy picture of the economic and social development in Europe. However, from the AK’s point of view, additional efforts have to be made at European level to ensure that the increased growth and employment rates also improve people’s working and living conditions. 

On 26 February 2025, the EU Commission presented the first of several omnibus packages (Omnibus I). Key instruments of the Green Deal will be weakened, in particular the Corporate Sustainability Due Diligence Directive (CSDDD) and Corporate Sustainability Reporting Directive (CSRD).

The new Emissions Trading System ETS II will become fully operational in 2027. The financial impact of rising fuel and heating costs is to be cushioned, particularly for poorer households. However, with the deadline approaching, not a single member state has yet submitted the Climate Social Plan required to receive funding from the Social Climate Fund from 2026 onwards.

In its Communication on the competitiveness compass, the EU Commission outlines measures to strengthen the EU's competitiveness. However, according to AK, to ensure that the compass needle points in the right direction it is essential to place greater emphasis on people. AK therefore advocates a high-road strategy that promotes skills and innovation, targeted industrial policy, future investments and high standards of protection for workers and consumers.

Forced labour is widespread globally and affects around 28 million people. In the Indian state of Maharashtra, agricultural workers harvesting sugarcane are forced into debt bondage. The ongoing negotiations on the EU-India Strategic Partnership provided the framework for a joint event hosted by AK EUROPA and the European Economic and Social Committee (EESC) in Brussels on 8 April 2025. Labour rights activist Chandan Kumar reported on the exploitation of sugarcane workers and organising under difficult conditions.

The EU Commission presented the so-called Omnibus I package on 26 February 2025. The proposal significantly waters down the recently adopted directives on Corporate Sustainability Due Diligence (CSDDD) and Corporate Sustainability Reporting (CSRD). Their implementation is also to be delayed. Important achievements for workers, the environment and the climate are thus being undermined and threaten to lose their impact. The EU Commission is presenting the proposals as measures to reduce bureaucracy and promote the EU's competitiveness.

By simplifying legislation, the EU Commission wants to increase the EU's competitiveness and ease the burden on companies. In this spirit, the so-called Omnibus Packages I and II were presented on 26 February 2025. While these proposals are presented as measures to reduce bureaucracy they actually undermine important achievements for workers, the environment and climate. Recently adopted laws for more sustainability run the risk of losing their effect.

The European labour market is currently characterised by high demand for labour, low rates of further training participation and barriers to qualification recognition. Many students enter the world of work with poor skills in mathematics, science and reading. The lack of these skills deepens social ills and inequalities. The EU Commission views these developments primarily as obstacles to competitiveness.

There are around 3 million trainees in the EU. About half of them are not being paid. In March 2024, the EU Commission presented a proposal for a Traineeships directive and a proposal for a Council recommendation on a reinforced Quality Framework for traineeships. However, from AK’s point of view, it is doubtful whether the proposals will bring the anticipated improvements.