Back in the autumn of last year, in a study commissioned by the Labour Ministry of North Rhine-Westphalia, the Hans Böckler Foundation’s Institute of Economic and Social Research (WSI) was already asking questions about the preconditions for the successful implementation of minimum wages. It examined examples from other European countries (France, the UK and the Netherlands), as well as German experiences with regional and sectoral minimum wages, which have existed for quite some time. Basically, it identified five factors for success:
- A precise and manageable definition of the minimum wage
- Clear, checkable provisions on the relationship between the minimum wage and working times
- The existence of efficient monitoring institutions and processes
- Effective instruments for wage-earners to get their minimum wage entitlements applied
- The broadest possible social acceptance, including by large sections of business.