EU Directive: Adequate Minimum Wages

Lord Hendy Excerpts

Wednesday 18th March 2026 Lords Chamber

[Lord Leong (Lab)]

I also gently remind noble Lords that the minimum wage is carefully considered by the independent Low Pay Commission, chaired by the noble Baroness, Lady Stroud, which examines the economic conditions, labour market data and evidence from employers and other stakeholders. The Government’s aim remains to set a wage floor that maintains living standards while protecting employment opportunities. Recent rises mean that the national living wage now makes up a historically high proportion of median earnings, supporting millions of low-paid workers right across the country. I am sure that noble Lords will agree that paying workers well is good for the economy.

[Lord Hendy (Lab)]

My Lords, the 80% minimum collective bargaining coverage in the directive curiously mirrors the 80% coverage achieved in Britain from 1945 until 1980, mandatorily through the wages councils and voluntarily by the joint industrial councils. The Government have made a good start with their adult social care negotiating body and the other body for school support staff. What further steps will they take to achieve sector-wide collective bargaining across British industry?

[Lord Leong (Lab)]

First, let me say that collective bargaining is not a dirty word. The Government recognise the important role that collective bargaining can play in supporting good workplace relations. However, the United Kingdom has traditionally taken a flexible, decentralised approach to setting wages. Our focus remains on securing a strong statutory minimum wage through the national minimum wage and the national living wage, guided by the independent Low Pay Commission. Alongside that, we continue to support fair work practices and to promote constructive engagement between employers and workers across all sectors.