In a recent proposal, the European Securities and Markets Authority (ESMA) wants to issue guidelines on wage systems for bank staff. The logic behind the proposal is investor protection. To avoid conflicts between the best interest of the customer and the possible financial interest of the employee, ESMA wants to regulate for example how sales bonuses can be designed.

NFU supports the idea of protecting customers against agressive sales targets, but – and this is a major objection – the EU should never regulate pay. This comes in direct conflict with the Nordic model, where wage systems are designed in collective agreements negotiated by trade unions and employer organisations. EU should know this, especially since it is written in the Treaty on the Functioning of the European Union that pay is not for the EU to deal with.

Last week, NFU answered a consultation on the proposal. We highlighted that any guidelines on pay and wages must be accompanied by a clause that safeguards the status of the collective agreements.

Read our consultation reply here.