EFBWW, the European Federation of Building and Woodworkers, reiterated its concerns on Monday 1 June regarding the proposed 28th Regime Corporate Legal Framework, EU Inc., following the debate on the subject held on 28 May by the EU27 ministers responsible for competitiveness (see EUROPE 13876/2).
Construction, which accounts for nearly 30% of posted workers, is one of the most mobile, fragmented and fraud-prone sectors in Europe. And these are “exactly the conditions where fast, digital company creation risks scaling already well-known abuse: letterbox companies, fake posting, abusive subcontracting, bogus self-employment and labour intermediaries that make responsibility disappear across borders”, the organisation explains in a position paper published on 5 May.
“In construction, making it easier to create and move companies across borders without strong verification will increase the very letterbox structures that enforcement authorities, unions and legitimate companies are already struggling to track”, the EFBWW explains.
The recently reached provisional agreement on revising the rules on social security coordination confirmed that legislators recognise the specific risks of fraud and non-compliance with the rules inherent in the construction sector by introducing sector-specific requirements. “The same logic should apply to the 28th regime, and the construction sector should be exempted from [it]”.
Link to the document: https://aeur.eu/f/m4k (Original version in French by Solenn Paulic)