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Treaty establishing the European Coal and Steel Community - Title III - Economic and social provisions - Chapter 8 - Wages and movement of workers - Article 68

1. The methods used for fixing wages and welfare benefits in the several Member States shall not, in the case of the coal and steel industries, be affected by this Treaty, subject to the following provisions.

2. If the Commission finds that one or more undertakings are charging abnormally low prices because they are paying abnormally low wages compared with the wage level in the same area, it shall, after consulting the Consultative Committee, make appropriate recommendations to them. If the abnormally low wages are the result of governmental decisions, the Commission shall confer with the government concerned, and failing agreement it may, after consulting the Consultative Committee, make a recommendation to that government.

3. If the Commission finds that wage reduction entails a lowering of the standard of living of workers and at the same time is being used as a means for the permanent economic adjustment of undertakings or as a means of competition between them, it shall, after consulting the Consultative Committee, make a recommendation to the undertaking or government concerned with a view to securing, at the expense of the undertakings, benefits for the workers in order to compensate for the reductions.

This provision shall not apply to:

(a) overall measures taken by a Member State to restore its external equilibrium, without prejudice in such case to any action under Article 67;

(b) wage reductions resulting from the application of a sliding scale established by law or by contract;

(c) wage reductions resulting from a fall in the cost of living;

(d) wage reductions to correct abnormal increases that occurred previously in exceptional circumstances which no longer obtain.

4. Save in the cases referred to in paragraph 3(a) and (b), any wage reduction affecting all or a substantial number of the workers in an undertaking shall be notified to the Commission.

5. The recommendations provided for in the preceding paragraphs may be made by the Commission only after consulting the Council, unless they are addressed to undertakings smaller than a minimum size to be defined by the Commission in agreement with the Council.

If in one of the Member States a change in the arrangements for the financing of social security or for dealing with unemployment and its effects, or a change in wages, produces the effects referred to in Article 67(2) or (3), the Commission is empowered to take the steps provided for in that Article.

6. The Commission may impose upon undertakings which do not comply with recommendations made to them under this Article fines and periodic penalty payments not exceeding twice the amount of the saving in labour costs improperly effected.