Brussels, 26/01/2016 (Agence Europe) - The European Parliament's employment and social affairs committee's first debate on the draft own initiative report on social dumping in the European Union on Monday 25 January revealed wide differences in the positions and levels of ambition of the political groups, with some favouring European wage minima while other, including the EPP Group, are unwilling even to countenance the principle of “the same pay for the same work in the same place” for posted workers.
The draft report was prepared by Guillaume Balas (S&D, France) and this initial committee discussion comes as the European Commission's job mobility package is expected to be presented shortly (see EUROPE 11465). However, according to a European source, there could be a further delay. This package will contain a proposal for a targeted revision of the 1996 posted workers directive. This is an area on which Balas focused a great deal of attention and practically all the MEPs who will work on the draft report on behalf of their group raised the issue during the debate.
At this stage, the draft report is built around three major strands, entwining a myriad of political and legislative issues. The general goal is to bring an end to unfair social competition among workers, among businesses and among member states as this can only lower standards everywhere and weaken employees' positions, Balas argued in the debate. He says the main problem is that, in social matters, “we are still in EU and European construction prehistory as the member states hold almost all the power”.
The first strand of his draft report lays emphasis on strengthening checks and coordination among the member states, putting forward the idea - controversial in Parliament - of a cross-border body of labour inspectors. Specifically for the posting of workers, the rapporteur proposes that national authorities should be able to suspend the posting in cases of serious breaches and amend Form A1 (declaration relating to social security legislation) where a bogus posting is suspected. It also makes the case for a European social security card containing information on the posting.
The second strand seeks to propose ways to close the regulatory loopholes so that the principle of “equal work, equal pay and equal social protection” can be put in place. With regard to postings, the rapporteur is looking to encourage the Commission to do more to tackle “PO box companies” by establishing the principle of a single business headquarters. He also wants to see Articles 151 and 153 of the TFEU on workers' social protection included in the legal basis of the 1996 directive, to have the notion of minimum rates of pay reviewed and a limit put on the duration of the posting. He does not offer any precise duration, however. He wants temporary work agencies to be excluded from the scope of the directive.
At the same time, the rapporteur gave much consideration - far too much in the view of some MEPs - to social dumping in the transport sector. He proposes more frequent checks on how the working time and rest time rules are being applied, combining this idea with the introduction of automated digital registers for all means of transport. He calls for a European transport agency to be set up or, at the very least, an agency specifically for road transport. Also required are the tools and a clear statement of the European provisions for better addressing the issue of bogus self-employment and permanent cabotage, Balas said.
With regard to the aviation sector, Balas would like to see a new regulation on groundhandling services, as well as better rules defining “operational bases” and the “home base”. In the maritime sector, he would like the Commission to propose a directive on the crews of vessels operating regular links between member states (the most advantageous national rules should apply) and to take steps, along the lines of what exists in the United States, to ensure that vessels transporting goods between two European ports are built in Europe, fly a European flag and belong to a European company.
The third and last strand relates to “social convergence”. Balas would welcome a social protocol that would assure the precedence of fundamental rights over economic freedoms and the introduction of pay minima that could take the form of minimum wages (at least 60% of the national average wage), especially for highly mobile workers, and an unemployment benefit scheme in the euro area. The Commission should also propose a legal instrument to deal with the cross-border dimension of sub-contracting in all sectors.
During the debate that followed the rapporteur's presentation, the majority of political groups made clear from the outset their desire to lower the level of ambition showed by Balas, the clearest example being the various reactions to the principle of “the same pay for the same work in the same place” which the Commission is struggling to translate into legislation. UK MEP Anthea McIntyre, who represents the ECR Group, spoke out against this principle. Expressing a personal view, EPP negotiator Danuta Jazlowiecka (Poland) did likewise, viewing it as an assault on the internal market. The EPP has yet to decide its position on this issue but is expected to do so in Bra tislava on 28 and 29 January (a large number of Eastern European MEPs oppose it). Only the ALDE Group gave its backing but, even then, only with regard to the minimum wage.
The approach of the EPP Group to the draft report consists of arguing three ideas: in particular, better application of existing rules (and awaiting the coming into force of the 2014 implementing directive on the posting of workers); improved cooperation among the member states; and identification of existing legal weaknesses. On this last point, the group intends to insist on a clear definition of what “social dumping” is and on improvement of the provisions in the 1996 posting of workers directive on abiding by a minimum level of conditions and standards in the host state (replacing “equal pay for equal work” in Jazlowiecka's opinion).
McIntyre was against virtually everything proposed by the rapporteur. She wants, firstly, to wait and see what the Commission will propose in its job mobility package and she was less than keen on a targeted review of the posting of workers directive. In her view, too, it is not for this Parliamentary committee to deal with the transport sector. The EFDD (represented by Italian MEP Laura Agea) and GUE/NGL (whose representative was Cypriot Neoklis Sylikiotis) highlighted the problem posed by cabotage. On behalf of the Greens/EFA Group, Karima Delli (France) stressed the need to tighten checks and expressed her support for a European work inspectors' agency.
Proposed amendments to the draft report can be put down until 16 February. The first committee vote is expected in April, with the plenary session vote possibly in May or June. (Original version in French by Jan Kordys)