Nowadays many economists debate on necessity of minimum wage and its influence on Economy. Economics doctrine shows, that minimum wage can bring positive as well as negative influence for economy development. Therefore the policy of minimum wage has as many arguments for as against. The role of State and Trade unions has a high impact level to determine the size of minimum wage and its existence in relationship between Employer and Employee.
In this report research refers to examples from Finland as the current State of residents.
1.1 Current situation with Minimum wage in European Union
Majority of countries within Europe have a national minimum wage. The national systems, however, differ widely regarding levels, scope and political and institutional setting of minimum wages within countries. Of the 28
…show more content…
It means that unions can bargain wages and other preferences for its members, buy using different types of action and collective wage agreement is one of them.
Collective wage agreements between Trade unions and Employers have been a feature of Finland's labour market-and those of other Nordic countries-since the early 1970s. A general wage agreement is reached centrally, after which individual unions and their respective employer organisations bargain over wages in each industry, controlling the minimum terms of wage on a task-specific basis. With no fixed minimum pay rate by legislation, this means that trade unions have a particularly strong presence in Finland.
The Organisation for Economic Co-operation and Development (OECD 2014) reports, that Finland has one of the highest trade union densities in the world at around 70 per cent (the proportion of paid workers who are union members). The average union density in OECD countries is just 17.5 per cent. Figure 1. Trade union density (OECD