Tendance Coatesy

Left Socialist Blog

As Corbyn attacks EU “cheap agency labour”, Europe creates new Agency to End ‘Social Dumping’ and Protect Workers.

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EU Sets up new Authority to Stop Social Dumping.

This section of Jeremy Corbyn’s speech to the Scottish Labour Party at Dundee  continues to create controversy,

We cannot be held back inside or outside the EU from taking the steps we need to develop and invest in cutting edge industries and local business stop the tide of privatisation and outsourcing, or from preventing employers being able to import cheap agency labour to undercut existing pay and conditions in the name of free market orthodoxy.

Here is a recent report.

Jeremy Corbyn has been attacked by senior Scottish Labour figures after making “incredibly disappointing” comments on immigration.

The European.

Former Scottish Labour leader Kezia Dugdale and Edinburgh South MP Ian Murray rounded on the Labour leader over remarks on leaving the EU in his speech to the party’s conference in Dundee.

Setting out his position on the Brexit deal, Corbyn said a future Labour government “cannot be held back inside or outside the EU … from preventing employers being able to import cheap agency labour, to undercut existing pay and conditions in the name of free market orthodoxy”.

Speaking at a fringe event hosted by the Scottish Labour for the single market campaign, Murray said: “I’m disappointed that the Labour party is not making this argument – immigration is good for the United Kingdom and Scotland and we have to be brave enough to stand up and make that point.

“And I was incredibly disappointed to see yesterday that the only person smiling after that passage in Jeremy’s speech would have been Nigel Farage.”

Murray said he believed the Labour front bench was the biggest impediment to getting single market membership into the Brexit bill but added: “The country is with us, Labour party membership is with us.

Corbyn’s views on “cheap agency labour” indeed echo the views of  ‘Sovereigntist’ anti-EU forces.

The pro-Brexit Morning Star recently contained this statement from the Communist Party of Britain. (CPB).

Most of British big business wants to keep Britain as closely aligned as possible with the single market because its rules for the free movement of capital, goods and labour, together with the right of companies to operate in any country they choose, enables them to maximise profit at the expense of working people,” Mr Griffiths added.

He highlighted a string of rulings by the European Court of Justice to restrict the rights of elected governments and trade unions to take action to protect imported, outsourced or redundant workers.

The hard-line anti-EU Socialist Party has argued for no ‘soft Brexit’ and dropping all legislation that allows the free movement of labour .   On  the 28th of February it declared,

EU rules have included the posted workers’ directive which enables bosses to use migrant labour to undercut existing wage levels.

If any of these groups, and Corbyn’s speech-writers, had bothered to follow the latest developments in the EU, they would have noticed that a wholesale reform of the “posted workers” directive is underway.

Here is the existing situation,

A “posted worker” is an employee who is sent by his employer to carry out a service in another EU Member State on a temporary basis.

For example, a service provider may win a contract in another country and send his employees there to carry out the contract.

Posted workers are different from EU mobile workers in that they remain in the host Member State temporarily and do not integrate in its labour market.

On the contrary, EU mobile citizens who go to another Member State to seek workand are employed there, are entitled to equal treatment with nationals in access to employment, working conditions and all other social and tax conditions.

Rights and rules for posted workers

The EU law defines a set of mandatory rules regarding the terms and conditions of employment to be applied to posted workers

  • to guarantee that these rights and working conditions are protected throughout the EU
  • to avoid “social dumping” where foreign service providers can undercut local service providers because their labour standards are lower.

These rules establish that, even though workers posted to another Member State are still employed by the sending company and therefore subject to the law of that Member State, they are entitled by law to a set of core rights in force in the host Member State.

This set of rights consists of:

  •    minimum rates of pay;
  •    maximum work periods and minimum rest periods;
  •    minimum paid annual leave;
  •    the conditions of hiring out workers through temporary work agencies;
  •    health, safety and hygiene at work;
  •   equal treatment between men and women.

However, there is nothing to stop the employer applying working conditions which are more favourable to workers than those of the sending Member State.

The EU law thus provides a clear framework to guarantee fair competition and respect for the posted workers’ rights so that both businesses and workers can take full advantage of the internal market opportunities.

The social security of posted workers is regulated through Regulation no 883/2004on the coordination of social security systems. A detailed guide explaining the applicable rules is available.

In the light of problems with enforcing these rules there has been extensive discussion of reform.

Réforme du travail détaché (Posted workers) : les institutions européennes trouvent un terrain d’entente. 1.3.18.

European Commission – Statement

Joint statement on the revision of the Posting of Workers Directive

Brussels, 28 February 2018

Joint statement by European Parliament Co-Rapporteurs Elisabeth Morin-Chartier and Agnes Jongerius, Bulgarian Deputy Minister for Labour and Social Policy Zornitsa Roussinova and Commissioner for Employment, Social Affairs, Skills and Labour Mobility Marianne Thyssen on the revision of the Posting of Workers Directive:

After intensive negotiations this evening we, the negotiators on behalf of the European Parliament, the Council and Commission, are satisfied to have covered all issues during the 7th trilogue meeting. We reached a common understanding on the contours of a possible agreement on the revision of the Posting of Workers Directive. We believe that the proposed package agreement on the table is balanced. The possible agreement establishes the principle of equal pay for equal work on the same place, whilst providing more legal certainty for both workers and employers.

We will now present the results of our negotiations within our respective institutions and will do our utmost to secure the mandates necessary for the final conclusion.

The outcome was announced this morning.

Bruxelles présente la création d’une nouvelle Autorité européenne du travail.

150 people are to be employed to enforce the law, prevent social dumping (the undercutting of wages and conditions), and  stop the abuse of migrant labour – though as this link indicates, some states are bound to be recalcitrant.

L’Europe a pris des mesures sur les travailleurs détachés, la lutte contre le dumping social, la mobilité au sein de l’Union etc. Mais encore faut-il que ces règles soient bien appliquées par les États. Or ce n’est pas le cas. Dans la réalité, certains pays, notamment de l’Est, ferment les yeux sur les abus car ça les arrange bien et si les administrations locales ne font rien, personne ne peut le vérifier. Ce sera donc le rôle de cette nouvelle Agence, d’aller demander des informations et d’enquêter pour voir si, réellement, les règles sociales sont bien appliquées de la même manière dans tous les pays de l’Union.

Update, just out: (Libération),  Bruxelles propose de créer une autorité européenne du Travail en 2019

European Commission – Press release

Commission adopts proposals for a European Labour Authority and for access to social protection

Strasbourg, 13 March 2018

Today, the European Commission is taking more concrete new initiatives to further deliver on the European Pillar of Social Rights.

More specifically, the Commission presents its proposal for a European Labour Authority, as announced by President Juncker in his 2017 State of the Union address, as well as an initiative to ensure access to social protection for all workers and self-employed. These initiatives are accompanied by a Communication on the monitoring of the implementation of the European Pillar of Social Rights, which will be closely linked to the European Semester of policy coordination.

Vice-President for the Euro and Social Dialogue, Valdis Dombrovskis, said“Europe is now steadily growing and employment is on the rise, but we have to ensure that growth is more inclusive to the benefit of all. This package sets out a number of steps to make that happen: by making sure the rules for people to live and work across the European Union are well known and enforced, by following up on the implementation of the European Pillar of Social Rights, pushing the broader momentum for social rights, and by focusing on access to social protection. A stronger social Europe is a more sustainable Europe.”

Marianne Thyssen, Commissioner for Employment, Social Affairs, Skills and Labour Mobility, added: Our work to ensure fair labour mobility culminates in today’s proposal for a European Labour Authority. This is essential for a well-functioning European labour market. It will help citizens and businesses on the move find the right information and strengthen cooperation between the Member States to enforce fair and effective rules. And with our proposal on access to social protection, we are working with Member States to make sure that nobody is left behind. Our aim is to ensure that people have access to adequate benefits no matter how the new world of work evolves.”

Over the last decade, the number of mobile citizens, people living and/or working in another Member State, has almost doubled to reach 17 million in 2017. The European Labour Authority will help individuals, businesses and national administrations to get the most out of the opportunities offered by free movement and to ensure fair labour mobility. The objective of the Authority is three-fold.

First, the Authority will provide information to citizens and business on opportunities for jobs, apprenticeships, mobility schemes, recruitments and training, as well as guidance on rights and obligations to live, work and/or operate in another Member State of the EU.

Second, the Authority will support cooperation between national authorities in cross-border situations, by helping them ensure that the EU rules that protect and regulate mobility are easily and effectively followed. Today, an extensive body of EU legislation regulates the free movement of workers and a number of such rules are being amended and modernised, such asfor the coordination of social security systems across the EU and issues like posting of workers in the context of service provision. The priority is not just to make these rules fairer and fit-for-purpose but also to make sure that they can be correctly applied and enforced in a fair, simple and effective way in all economic sectors. For instance, the Authority will help improve information exchange, support capacity building among national authorities and assist them in running concerted and joint inspections. This will strengthen mutual trust between actors, improve day-to-day cooperation routines and prevent possible fraud and abuse of rules.

Third, the European Labour Authority will be able to provide mediation and facilitate solutions in case of cross-border disputes, such as in the event of company restructuring involving several Member States.

The European Labour Authority will be established as a new decentralised EU agency and, following the completion of the EU legislative process, should be up and running in 2019. To facilitate the establishment of the Authority and make sure it is rapidly up and running once created, the Commission is also setting up an advisory group composed of key stakeholders to look into the practical aspects of the future functioning of the Authority.

The Commission is also presenting today a proposal for a Council Recommendation on access to social protection for workers and the self-employed. As the world of work evolves due to new lifestyles, business practices and digitisation, social protection systems constantly need to match new realities. Today, almost 40% of people employed are either in an atypical employment situation – meaning that they are not working under a full-time, open-ended contract – or self-employed. Such persons are not always well covered in terms of social security, lacking unemployment insurance or access to pension rights. In line with the European Pillar of Social Rights, this proposal aims to set a direction for Member States to support access to social protection for all workers and self-employed, in particular for those who, due to their employment status, are not sufficiently covered by social security schemes.

The Recommendation foresees:

  • to close formal coverage gaps by ensuring that workers and the self-employed in comparable conditions can adhere to corresponding social security systems;
  • to offer them adequate effective coverage, so that they can build up and claim adequate entitlements;
  • to facilitate the transfer of social security entitlements from one job to the next;
  • to provide workers and the self-employed with transparent information about their social security entitlements and obligations.

Finally, as a complement to the initiatives already taken and still to come at EU level, the Commission outlines its views for the monitoring of the implementation of the European Pillar of Social Rights. This will be done by reflecting the priorities of the European Pillar of Social Rights in the annual cycle of the European Semester of policy coordination, which includes an analysis of measures taken and progress made at national level; the provision of technical assistance, benchmarking exercises and exchange of good practices; and the screening of employment and social performances, also with the help of the new Social Scoreboard, which tracks trends and performances across EU Member States in the three areas of principles under the Pillar of Social Rights. The Commission is also publishing today a staff working document recalling the legal framework for each of the principles of the European Pillar of Social Rights, with due regard to the respective competences of the EU and of the Member States, including the role of the social partners and recent EU-level actions in each area.

Next steps

European Labour Authority: In accordance with the ordinary legislative procedure, this proposal for a Regulation will now be examined by the European Parliament and the Council. The ambition of the Commission is for the Authority to be up and running in 2019.

Access to social protection: This will now be examined by the Council, which can adopt recommendations on the basis of a Commission proposal in the areas of EU competence.

The Commission will present today’s package of initiatives to national Employment and Social Affairs Ministers at the Council meeting in Brussels on 15 March. At the European Council of 22 and 23 March 2018, Heads of State and Government will also come back to addressing the implementation of the European Pillar of Social Rights.

Background

The Commission’s intention to set up a European Labour Authority was announced by President Juncker in his State of the Union Address on 13 September 2017. The European Labour Authority will complement and facilitate the implementation of ongoing initiatives to ensure fair mobility, including the reform of the Posting of Workers Directive, the Lex Specialis in the international road transport sector and the modernisation of EU rules for the coordination of social security systems.

Increased labour market flexibility and a growing diversity of forms of work have created new jobs and allowed more people to become professionally active, as recalled during the consultation on the European Pillar of Social Rights and in the Reflection Paper on the Social Dimension of Europe. But they also led to some gaps in social protection coverage that need to be closed. The Commission’s proposal for a Council Recommendation on access to social protection is a response to these changing labour market realities, in particular the new forms of work that have developed in recent years. The initiative was announced in April 2017 together with the European Pillar of Social Rights. It is part of the 2017 and 2018 Commission Work Programmes and follows a two-stage consultation of EU social partners.

These initiatives are part of the roll-out of the European Pillar of Social Rights, which was jointly proclaimed at the Social Summit for Fair Jobs and Growth in Gothenburg in November 2017. Delivering on the European Pillar of Social Rights is a shared political commitment and responsibility and monitoring its implementation is essential for ensuring tangible progress on the ground. This is why in today’s Communication, the Commission takes stock of initiatives that it has taken to roll out the Pillar, including an initiative on work-life balance and proposal for transparent and predictable working conditions in the European Union.

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Written by Andrew Coates

March 13, 2018 at 1:50 pm

One Response

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  1. Belgian Herman Michiel, on the site of the Dutch ‘Ernest Mandel Fourth International’ (in itself not anti-EU) skewers this reform as mainly public relations window dressing:

    https://www.grenzeloos.org/content/het-vreugdedansje-van-agnes-jongerius

    petrel41

    March 27, 2018 at 5:51 pm


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