At today’s Tripartite Social Summit, a delegation from the European Trade Union Confederation (ETUC) outlined its plan for strengthening Europe through addressing under-investment, reinforcing quality jobs and taking action for affordable housing.
Drawing on the latest ETUC–ETUI Growth and Employment Monitor, General Secretary Esther Lynch highlighted how the evidence points to a simple truth: in Europe, the countries in which productivity is highest have strong worker protections and collective bargaining systems.
Chronic underinvestment in innovation, technology, and workers is the core reason for a slow-down in EU productivity growth. Meanwhile, wage growth has lagged far behind productivity, excluding working people from benefitting from progress that their work delivers.
Lynch argued that reversing this trend requires a new wave of investment, one that boosts demand, supports just transitions, and strengthens Europe’s industrial base. To that end, the ETUC put forward two concrete proposals during the summit:
- A joint foresight by European institutions and social partners with focus on jobs, economic sectors and regions to anticipate changes and guide policy;
- A European pact for investments in innovation, technology, workers and just transitions as the way to increase productivity.
Crucially, this must be accompanied by a Quality Jobs Act that responds to the needs of working people, whether its AI, stress, a just transition or the right to disconnect. Importantly it must stamp out exploitation including in subcontracting and labour market intermediaries.
The Monitor paints a stark picture of the housing crisis gripping Europe. In 16 Member States, housing costs now consume more than half of a full-time minimum wage. In some capitals, rent alone exceeds monthly earnings. Access to decent housing is a question of basic human dignity, and the situation is now so acute that it is undermining stability and growth.
Esther Lynch, ETUC General Secretary, said:
“This is the moment to double down on our strengths. To invest in working people, in innovation and technology, in affordable housing and high-quality public services. That’s how we build a stronger, fairer Europe.
“You don’t boost productivity by cutting wages or stripping away protections. The most productive countries in Europe are also the ones that treat workers best. And when productivity rises, wages must rise too because when workers have money in their pockets, they spend it in the real economy, driving domestic demand and strengthening Europe in a changing world.”
ENDS
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