Brussels, 12/04/2013 (Agence Europe) - Promises are made to be kept. Belgium sent a letter of complaint to the European Commission on Tuesday 3 April denouncing Germany's “social dumping” in the meat processing sector (see EUROPE 10810). The two Belgian ministers who signed the letter - Johan Vande Lanotte (economy) and Monica De Coninck (employment) - put less emphasis on Directive 96/71 on posted workers than on the principle of equality and non-discrimination and Regulation 883/2004 on coordination of social security systems.
Belgium is unhappy at what it deems to be unfair competition on the part of German slaughter houses and meat processing companies. Prices practised in Germany are said to be unbeatable due to the fact that Romanian and Bulgarian workers are employed, seen as posted workers when it comes to the law but employed permanently in fact. Furthermore, there being no minimum salary scale in this sector is said to allow German companies to employ foreign workers at a tariff of between €3 and €7 per hour, compared to €9 and €15 for other workers.
Both Belgian ministers consider, therefore, that there is serious room for doubt regarding the conformity of this practice with EU law, states the letter forwarded to Employment Commissioner Laszlo Andor, a copy of which was obtained by EUROPE. But what law is this? The Belgian argument is not based on Directive 96/71/EC on posted workers, which is currently still being reviewed at the EU Council, due to the lack of minimum wage. It is based more on the principle of treatment and non-discrimination, as described in Article 18 of the treaty on the functioning of the EU (TFEU) and Directives 2007/2008 (equal treatment in employment and work), 2000/43 (equal treatment between persons without distinction of race or ethnic origin), 97/81 (part time work), 91/383 (work with fixed-term working contract and temporary work) and 2008/104 (temporary work).
Belgium considers that Romanian and Bulgarian workers are discriminated against in Germany under EU law due to the fact that they earn less than their German colleagues and the fact that they are regular full-time workers when they should be considered, in some cases, as temporary workers. In such a situation as this, the German companies also do not comply with Regulation 883/2004 as, with foreign workers receiving a lower wage, German social contributions are not levied. Such workers are, then fully integrated into the companies but do not benefit from all the advantages due to them. In short, it is a system which, as the two Belgian ministers point out, is tantamount to “social dumping”.
The Commission has now to tackle this issue and to consider whether such practices are in line with European legislation. Other than the legal argument, Belgium is also willing to indicate those persons whose opinions it would be useful to hear. Commission expertise can take time. As the two Belgium ministers have acknowledged, this situation may, “at first sight”, be legal. However, “if one takes a closer look”, there is competition distortion. (JK/transl.jl)