The Polish Government has agreed with NSZZ Solidarnosc, one of the main trade unions, a significant 20% increase in the minimum monthly wage, which will rise from PLN 936 (€ 247) to PLN 1,126 (€ 297) in 2008. The bilateral agreement represents a significant departure from the tripartite social dialogue process between the Government, trade unions and employers’ organisations. Employers expressed their concerns about the rise in the minimum wage and the negative effects that the higher labour costs may have on the competitiveness of small businesses. In response, the Government justified its decision to make a material increase to the minimum wage on the basis that by widening the difference between the minimum wage and unemployment it would make employment a much more attractive option.