The hearing began at 9am in the Grand Chamber of the EU Court of Justice, with Denmark arguing that when they adopted the directive in 2022, the EU Parliament and EU Council were in breach of Article 153 (5), which states that the EU’s right to legislate over social policy “shall not apply to pay, the right of association, the right to strike or the right to impose lock-outs”.
“I am pleased that the European Court of Justice will be given the opportunity to assess the case. This is a matter of principle,” Denmark’s employment minister, Ane Halsboe-Jørgensen, said in a press statement on the hearing.
“The government, a broad majority in the Danish Parliament and the social partners have been against the EU’s minimum wage directive from the start. We are adamant that wage formation must take place in Denmark and not in the EU. We have 125 years of good experience in leaving the negotiations on wages and working conditions to the parties.”
The EU directive on minimum wages was adopted in October 2022, and included clauses promising that countries would not be forced to impose a minimum wage, but Denmark and Sweden were nonetheless both opposed, arguing that the measure was a threat to the labour models in the countries, where wages are set through negotiations between trade unions and employers.
Denmark brought its case against the EU parliament and the EU Council in January 2023, with the support of Sweden, which backed Denmark’s position in June 2022.
EU member states are required to implement the directive within two years, even if a case is ongoing, meaning the directive has to be transposed by Member States by 15 November 2024.
A spokesperson from Denmark’s employment ministry said that the government was currently in talks with unions and employer organisations over how to do this.
“The Danish government is currently analysing the Directive in close dialogue with the social partners in the Implementation Council (‘Implementeringsudvalget’) and will notify the European Commission at the latest by 15 November 2024,” they said. “The Minimum Wage Directive is expected to have limited impact in Denmark.”
The European Court of Justice is expected to give its judgement on Tuesday’s proceedings in the first half of 2025.
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