Monday, 16 October 2017

EU to put an end the profitable detached work

Draft amending proposal of the posted workers directive wants to eliminate the wage differences. In name of labour protection and fair competition

by Emanuele Bonini

Same remuneration and same conditions as local workers, no salary level change in case of subcontractor, publication of all elements of the different remuneration policies in force in the Member States. The European Union made a step forward in the revision of posting workers directive, by adopting the draft proposal containing the new measures. The Employment and Social Affairs Committee approved the legislative text by with 32 votes to 8 and 13 abstentions, paving the way to the negotiations with the European Council. Unless of last-minute surprises, with every probability the Plenary will back the draft bill in the vote scheduled next week. Then representative from the Parliament and from the Member States (Council) will be in the position of table negotiations.

Posted workers account for less than 1% of the overall EU working population, but they are growing in number. According to the EU figures, in 2015 they were 2.05 million, a value increased by 41,3% between 2010 and 2015. The growth of the single market has led to increased wage differences, generating automatic incentives for posting. Workers sent working abroad often earn considerably less than local workers, which can lead to unfair competition between posting and domestic companies, social dumping and exploitation of posted workers. The new draft rules are supposed to stop all that, pointed out one of the two co-rapporteur. «The agreement we have is politically clear: improve the protection of workers and ensure a level playing field for companies in the internal market», said the Elisabeth Morin-Chartier after the commitee vote.

In line of principle, all of the host country’s rules on remuneration, set by law or collective agreements, should apply to posted workers. If the posting is longer than 24 months, all of the host country’s labour conditions would apply to posted workers (i.e bonuses, holidays, permissions...). Companies are given the possibility to extend the 24-month limit in case of need of more time to complete the service it was required to provide. On the other hand hosting countries are left free to apply regional or sectoral collective agreements, instead of national ones, if they offer more favourable conditions for posted workers. Any way, travel and accommodation costs must be reimbursed or be part of the wage, according to the new draft rules.

The European Parliament intended not to create any way out. To prevent “chain postings”, aimed at circumventing obligations, the new rules would also apply to posted workers sent by a temporary agency from another member state. In this regard Member States may oblige the subcontractor to pay their posted workers the same amount as the main contractor. About States, these should be obliged to publish all elements of their national remuneration policy, as well as information on collective agreements, on a special website.

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