In many countries, minimum wage levels are established by law and, in some cases there are also variations based on regional, state or other criteria (e.g., in the UK, France, Spain, the United States and Brazil).
Where no specific law exists, a minimum wage is often established by collective bargaining agreements between employer associations and union representatives. This is the case in Italy, Germany and Belgium, for example, where pay and employment conditions are negotiated at the regional or national level, with the possibility of establishing higher wage levels at the company level. It is important to note that minimum wage levels are also established on the basis of specific economic, social and political circumstances and, therefore, do not allow for cross-border comparisons.
In order to evaluate the adequacy of entry-level salaries in each country, the Group conducted an analysis which shows that in all countries monitored,(1) entry-level salaries(2) are at least equal to, if not higher than, the statutory minimum or applicable non-company collective labor agreement.
Workplace equality within the Group is also seen in the comparison between minimum entry-level wages by gender. Considering the 27 countries included in the survey sample, wage levels were found to be identical between men and women.
Comparison between entry-level salary and minimum wage
Fiat Group worldwide (minimum wage=100)
(1) The survey covered around 83% of the workforce of the 27 countries mapped and about 97% of the Group’s total workforce.
(2) In accordance with the GRI-G4 guidelines, entry-level salary is defined as the minimum compensation paid to a full-time employee hired at the lowest pay scale/employee grade on the basis of company policy or agreements between the company and trade unions. For each country, results are based on the company with the lowest ratio of entry-level salary to minimum wage. Figures reported are as of 31 October 2013.