EU Postpones Implementation of HGV Minimum Wage Rules

Recent developments in France and Germany regarding the introduction of minimum wage rules for HGV drivers has heightened worries throughout the industry, but altercations between the two countries and the EU has seen the rulings postponed for the time being. The changes could have far-reaching implications for the industry, particularly for those drivers delivering goods through these countries, but just how exactly it will affect business and drivers may have escaped the headlines for most, so in this month’s article we’ll be highlighting just that.

The Proposed Legislation Changes

In 2015, Germany introduced minimum wage changes that would mean any international drivers transiting goods through or even to the country (therefore crossing the border into the country) would have to be paid the German minimum wage of €8.50 an hour. The ruling would apply to any international employee working in the country, even if the company they are working for is based outside of Germany. The change would see significant pay increases for workers from other countries within the EU, where the minimum wage can be markedly lower, raising concerns throughout the EU.

Poland is one such country where the increase in the minimum wage has caused a bit of a furore. The Polish minimum wage stands equivalent to just €2.50 an hour, meaning that employers would have to increase their employees’ wages by more than double in order to comply with the German legislation. Employers claim it will harm competitiveness if the German ruling is enforced and in so doing would hurt the core EU principles of free trade within the bloc. Formal complaints, therefore, have been raised with the EU.

France Pushes Minimum Wage Changes Too

The ‘Loi Macron’ law was passed in France which introduced similar measures as their German counterparts. Critics claimed that the French government should’ve waited for the German policies to come to full fruition before pushing it through, waiting to see what the EU commission’s verdict would be. Instead, the EU had to take further action against the two countries as more uproar emerged from other countries in the bloc, the employers therein being unhappy that not only would they be forced to pay higher wages in Germany but in France as well.

The EU Postpones the Changes

For the time being, we will have to wait and see what the EU Commission says regarding the application of the minimum wage changes. However, should they uphold the French and German legislation, soon employers in the UK paying HGV drivers travelling to the continent may have to take the rise in pay into consideration. Failure to do so would see heavy fines brought against an employer by the French or German governments. Keeping a close eye on the developments in the coming months is essential for all companies sending HGV drivers to work on the continent.

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