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2015/2255(INI) Social dumping in the European Union
Next event: Commission response to text adopted in plenary 2016/12/21 more...

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead EMPL BALAS Guillaume (icon: S&D S&D) JAZŁOWIECKA Danuta (icon: PPE PPE), MCINTYRE Anthea (icon: ECR ECR), DLABAJOVÁ Martina (icon: ALDE ALDE), SYLIKIOTIS Neoklis (icon: GUE/NGL GUE/NGL), DELLI Karima (icon: Verts/ALE Verts/ALE), AGEA Laura (icon: EFDD EFDD), BIZZOTTO Mara (icon: ENF ENF)
Committee Opinion FEMM REGNER Evelyn (icon: S&D S&D) Beatrix von STORCH (icon: EFDD EFDD)
Committee Opinion TRAN NILSSON Jens (icon: S&D S&D)
Lead committee dossier:
Legal Basis:
RoP 54

Events

2016/12/21
   EC - Commission response to text adopted in plenary
Documents
SP(2016)876
2016/09/14
   EP - Results of vote in Parliament
Documents
Results of vote in Parliament
2016/09/14
   EP - Decision by Parliament, 1st reading/single reading
Details

The European Parliament adopted by 458 to 199 with 34 abstentions a resolution on social dumping in the European Union.

Members recalled that the growth in abusive practices and the increasing exercise of social dumping weaken support for the principle of the internal market and the competitiveness of businesses, in particular SMEs, undermine the rights of European workers and confidence in European integration.

Posted workers make up about 0.7 % of the entire EU labour force. Agriculture, building, construction, catering and food, transport, health, care and domestic services are the main sectors concerned.

Reinforcing controls and coordination between and by Member States : Parliament recalled that, while there is no legally recognised and universally shared definition of social dumping, the concept covers a wide range of intentionally abusive practices and situations which can have an impact as regards three main dimensions:

the economic aspect : the use by certain economic actors of illegal practices such as undeclared work or of abusive practices such as bogus self-employment can lead to major market distortions which are detrimental to bona fide companies, in particular SMEs; the social aspect : social dumping could lead to a situation of discrimination and unfair treatment between workers in the EU and deprive them of the effective exercise of their social and labour rights, including in respect of pay and social protection; the financial and budgetary aspect : the non-payment of due social security contributions and taxes as a result of social dumping represents a threat to the financial sustainability of social security systems and the public finances of the Member States.

Faced with this situation, Members stated that it is crucial to ensure a level playing field and fair competition across the EU and to eliminate social dumping . They called on the Member States to:

increase efficiency and to secure appropriate staffing levels and resources for their control bodies (including social and/or labour inspectorates), through the exchange of best practices and through meeting the benchmark of one labour inspector for every 10 000 workers; improve cross-border cooperation between inspection services and the electronic exchange of information and data, with a view to mandatory cooperation and mutual assistance between Member States; draw up Union-wide in-service training programmes for inspectors, to identify new techniques used to circumvent the rules, and to organise cross-border cooperation; create, where applicable, ad hoc bilateral task forces and, where needed, a multilateral task force including national competent authorities and labour inspectors, to carry out, subject to the approval of all the Member States concerned, on-the-spot cross-border checks, in accordance with the national law of the Member States in which the controls take place, in suspected cases of social dumping; establish legal frameworks allowing the lawful employment of domestic workers and carers , in order to provide legal certainty for employers and fair terms of employment as well as decent working conditions for workers; improve considerably information exchange concerning social security for posted workers, with a view to improving the enforcement of existing legislation.

Parliament recommended that, in the case of posting, it should be made mandatory in all Member States to submit a declaration when the provision of services commences, at the latest, and that such declarations should be entered in a European register . It also called for an EU-wide list of enterprises , including letterbox companies, responsible for serious breaches of European labour and social legislation to be drawn up – after they have received prior warning – which can be consulted only by the relevant authorities. It called for these enterprises to be denied access to public contracts, public subsidies and EU funds for a statutory period.

Addressing regulatory gaps : Members called on the Commission to;

monitor carefully the implementation of Directive 2014/67/EU and the effectiveness of the Platform Tackling Undeclared Work in combating the phenomenon of letterbox companies by applying more generally the principle that each company should have one main corporate headquarters and ensuring that in cases of free provision of services using posted workers, each service provider involved should perform a 'genuine activity' in the Member State of establishment, and therefore be a genuine undertaking ; monitor carefully the application of the obligation placed on Member States by that directive to provide for measures ensuring that, in the construction sector, posted workers in subcontracting chains can hold the contractor of which their employer is a direct subcontractor liable as regards respect for their rights as workers;

As regards mobile workers , Parliament called for the stepping-up of checks in relation to compliance with work, standby, driving and rest times in all relevant sectors, such as construction, catering, health and transport (road), and for the imposition of penalties for serious non-compliance. It called on the Commission to: consider creating a European Road Transport Agency to ensure proper implementation of EU legislation and promote standardisation and cooperation among all Member States as regards road transport. Furthermore, it rejected any further liberalisation of cabotage until the implementation of the current legal framework has been strengthened.

Members also:

stressed t he need for the Commission and the Member States to monitor and ensure proper enforcement of national social legislation and collective agreements for airlines having operational bases on EU territory; recalled the importance of tying the development of the digital and sharing economy to the protection of workers in this new sector, where more flexible working practices may result in more precarious and less regulated employment.

Towards upward social convergence : recalling the Commission's commitment to establishing a pillar of social rights, Members stressed the need for upward social convergence in order to achieve the objectives set out in Article 151 TFEU. The adoption of a pillar of social rights should not lead to the lowering of existing labour and social standards. They recommended the establishment of wage floors in the form of a national minimum wage , with the objective of gradually attaining at least 60 % of the respective national average wage, if possible, so as to avoid excessive wage disparities.

The Commission should also examine the possibility of establishing an instrument whereby companies can be subject to a greater duty of care for which they may be held liable, in respect of both their subsidiaries and their subcontractors operating in third countries, in order to prevent human rights violations, corruption, severe physical injury or environmental damage and the violation of ILO conventions.

Documents
T8-0346/2016
2016/09/14
   EP - End of procedure in Parliament
2016/09/13
   EP - Debate in Parliament
Documents
Debate in Parliament
2016/08/18
   EP - Committee report tabled for plenary, single reading
Details

The Committee on Employment and Social Affairs adopted the own-initiative report by Guillaume BALAS (S&D, FR) on social dumping in the European Union.

Members recalled that the growth in abusive practices and the increasing exercise of social dumping weaken support for the principle of the internal market and the competitiveness of businesses, in particular SMEs, undermine the rights of European workers and confidence in European integration and make genuine social convergence essential. Agriculture, building, construction, catering and food, transport, health, care and domestic services are the main sectors concerned.

Reinforcing controls and coordination between and by Member States : Members recalled that, while there is no legally recognised and universally shared definition of social dumping, the concept covers a wide range of intentionally abusive practices and situations which can have an impact as regards three main dimensions:

the economic aspect : the use by certain economic actors of illegal practices such as undeclared work or of abusive practices such as bogus self-employment can lead to major market distortions which are detrimental to bona fide companies, in particular SMEs; the social aspect : social dumping could lead to a situation of discrimination and unfair treatment between workers in the EU and deprive them of the effective exercise of their social and labour rights, including in respect of pay and social protection; the financial and budgetary aspect : the non-payment of due social security contributions and taxes as a result of social dumping represents a threat to the financial sustainability of social security systems and the public finances of the Member States.

Faced with this situation, Members stated that it is crucial to ensure a level playing field and fair competition across the EU and to eliminate social dumping . They called on the Member States to:

increase efficiency and to secure appropriate staffing levels and resources for their control bodies (including social and/or labour inspectorates, agencies and liaison offices), including for interpretation and translation, inter alia through the exchange of best practices; improve cross-border cooperation between inspection services and the electronic exchange of information and data, in order to improve the efficiency of controls intended to combat and prevent social fraud, bogus self-employment and undeclared work, while recognising the importance of data protection, and with a view to mandatory cooperation and mutual assistance between Member States; draw up Union-wide in-service training programmes for inspectors, to identify new techniques used to circumvent the rules, and to organise cross-border cooperation; create, where applicable, ad hoc bilateral task forces and, where needed, a multilateral task force including national competent authorities and labour inspectors, to carry out, subject to the approval of all the Member States concerned, on-the-spot cross-border checks, in accordance with the national law of the Member States in which the controls take place, in suspected cases of social dumping; improve considerably information exchange concerning social security for posted workers, with a view to improving the enforcement of existing legislation and to cooperate across borders in relation to enforcement information.

The report recommended that, in the case of posting, it should be made mandatory in all Member States to submit a declaration when the provision of services commences, at the latest, and that such declarations should be entered in a European register . It also called for an EU-wide list of enterprises , including letterbox companies, responsible for serious breaches of European labour and social legislation to be drawn up – after they have received prior warning – which can be consulted only by the relevant authorities. It called for these enterprises to be denied access to public contracts, public subsidies and EU funds for a statutory period.

Addressing regulatory gaps : Members called on the Commission to monitor carefully the implementation of Directive 2014/67/EU and the effectiveness of the Platform Tackling Undeclared Work in combating the phenomenon of letterbox companies by applying more generally the principle that each company should have one main corporate headquarters and ensuring that in cases of free provision of services using posted workers, each service provider involved should perform a 'genuine activity' in the Member State of establishment.

As regards mobile workers , the report called for the stepping-up of checks in relation to compliance with work, standby, driving and rest times in all relevant sectors, such as construction, catering, health and transport (road), and for the imposition of penalties for serious non-compliance. It called on the Commission to:

consider creating a European Road Transport Agency to ensure proper implementation of EU legislation and promote standardisation and cooperation among all Member States as regards road transport; draw up a national collective agreement in all Member States, in cooperation with the social partners, in order to guarantee certain rules on rest times and suitable social safeguards, above all in the event of acquisitions by airlines outside the EU.

Members also recalled the importance of tying the development of the digital and sharing economy to the protection of workers in this new sector, where more flexible working practices may result in forms of employment with lower standards as regards social security, working time, working location, training, worker participation and employment protection.

Towards upward social convergence : recalling the Commission's commitment to establishing a pillar of social rights, Members stressed the need for upward social convergence in order to achieve the objectives set out in Article 151 TFEU. The Commission urged the Commission, in the specific recommendations it makes to the Member States as part of the European Semester , to incorporate opinions on social issues with a view to enhancing worker protection through convergence.

The Commission should also examine the possibility of establishing an instrument whereby companies can be subject to a greater duty of care for which they may be held liable, in respect of both their subsidiaries and their subcontractors operating in third countries, in order to prevent human rights violations, corruption, severe physical injury or environmental damage and the violation of ILO conventions.

Documents
A8-0255/2016
2016/07/13
   EP - Vote in committee, 1st reading/single reading
2016/04/08
   EP - Committee opinion
Documents
PE571.803
2016/03/10
   EP - Amendments tabled in committee
Documents
PE575.343
2016/02/25
   EP - Amendments tabled in committee
Documents
PE578.503
2016/02/18
   EP - Committee opinion
Documents
PE571.749
2016/01/07
   EP - Committee draft report
Documents
PE571.622
2015/10/29
   EP - Committee referral announced in Parliament, 1st reading/single reading
2015/10/07
   EP - REGNER Evelyn (S&D) appointed as rapporteur in FEMM
2015/09/18
   EP - NILSSON Jens (S&D) appointed as rapporteur in TRAN
2015/07/23
   EP - BALAS Guillaume (S&D) appointed as rapporteur in EMPL

Documents

Activities

AmendmentsDossier
53 2015/2255(INI)
2015/12/17 FEMM 53 amendments...
source: 573.209

History

(these mark the time of scraping, not the official date of the change)

2020-01-19Show (9) Changes | Timetravel
committees/0
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body
EP
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Employment and Social Affairs
committee
EMPL
rapporteur
name: BALAS Guillaume date: 2015-07-23T00:00:00 group: Progressive Alliance of Socialists and Democrats abbr: S&D
shadows
committees/0
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Employment and Social Affairs
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EMPL
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2015-07-23T00:00:00
rapporteur
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shadows
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committee_full
Transport and Tourism
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TRAN
rapporteur
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committees/1
type
Committee Opinion
body
EP
associated
False
committee_full
Transport and Tourism
committee
TRAN
date
2015-09-18T00:00:00
rapporteur
name: NILSSON Jens group: Progressive Alliance of Socialists and Democrats abbr: S&D
committees/2
type
Committee Opinion
body
EP
associated
False
committee_full
Womens Rights and Gender Equality
committee
FEMM
rapporteur
name: REGNER Evelyn date: 2015-10-07T00:00:00 group: Progressive Alliance of Socialists and Democrats abbr: S&D
committees/2
type
Committee Opinion
body
EP
associated
False
committee_full
Womens Rights and Gender Equality
committee
FEMM
date
2015-10-07T00:00:00
rapporteur
name: REGNER Evelyn group: Progressive Alliance of Socialists and Democrats abbr: S&D
docs/5/body
EC
events/2/docs/0/url
Old
http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2016-0255&language=EN
New
http://www.europarl.europa.eu/doceo/document/A-8-2016-0255_EN.html
events/5/docs/0/url
Old
http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2016-0346
New
http://www.europarl.europa.eu/doceo/document/TA-8-2016-0346_EN.html
2019-07-12Show (2) Changes | Timetravel
committees/0
type
Responsible Committee
body
EP
associated
False
committee_full
Employment and Social Affairs
committee
EMPL
date
2015-07-23T00:00:00
rapporteur
name: BALAS Guillaume group: Progressive Alliance of Socialists and Democrats abbr: S&D
shadows
committees/0
type
Responsible Committee
body
EP
associated
False
committee_full
Employment and Social Affairs
committee
EMPL
date
2015-07-23T00:00:00
rapporteur
name: BALAS Guillaume group: Progressive Alliance of Socialists and Democrats abbr: S&D
shadows
2019-07-06Show (16) Changes | Timetravel
activities
  • date: 2015-10-29T00:00:00 body: EP type: Committee referral announced in Parliament, 1st reading/single reading committees: body: EP shadows: group: EPP name: JAZŁOWIECKA Danuta group: ECR name: MCINTYRE Anthea group: ALDE name: DLABAJOVÁ Martina group: GUE/NGL name: SYLIKIOTIS Neoklis group: Verts/ALE name: DELLI Karima group: EFD name: AGEA Laura group: ENF name: BIZZOTTO Mara responsible: True committee: EMPL date: 2015-07-23T00:00:00 committee_full: Employment and Social Affairs rapporteur: group: S&D name: BALAS Guillaume body: EP responsible: False committee: FEMM date: 2015-10-07T00:00:00 committee_full: Women’s Rights and Gender Equality rapporteur: group: S&D name: REGNER Evelyn body: EP responsible: False committee: TRAN date: 2015-09-18T00:00:00 committee_full: Transport and Tourism rapporteur: group: S&D name: NILSSON Jens
  • date: 2016-07-13T00:00:00 body: EP type: Vote in committee, 1st reading/single reading committees: body: EP shadows: group: EPP name: JAZŁOWIECKA Danuta group: ECR name: MCINTYRE Anthea group: ALDE name: DLABAJOVÁ Martina group: GUE/NGL name: SYLIKIOTIS Neoklis group: Verts/ALE name: DELLI Karima group: EFD name: AGEA Laura group: ENF name: BIZZOTTO Mara responsible: True committee: EMPL date: 2015-07-23T00:00:00 committee_full: Employment and Social Affairs rapporteur: group: S&D name: BALAS Guillaume body: EP responsible: False committee: FEMM date: 2015-10-07T00:00:00 committee_full: Women’s Rights and Gender Equality rapporteur: group: S&D name: REGNER Evelyn body: EP responsible: False committee: TRAN date: 2015-09-18T00:00:00 committee_full: Transport and Tourism rapporteur: group: S&D name: NILSSON Jens
  • date: 2016-08-18T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2016-0255&language=EN type: Committee report tabled for plenary, single reading title: A8-0255/2016 body: EP type: Committee report tabled for plenary, single reading
  • date: 2016-09-13T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20160913&type=CRE type: Debate in Parliament title: Debate in Parliament body: EP type: Debate in Parliament
  • date: 2016-09-14T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2016-0346 type: Decision by Parliament, 1st reading/single reading title: T8-0346/2016 body: EP type: Decision by Parliament, 1st reading/single reading
commission
  • body: EC dg: Employment, Social Affairs and Inclusion commissioner: THYSSEN Marianne
committees/0
type
Responsible Committee
body
EP
associated
False
committee_full
Employment and Social Affairs
committee
EMPL
date
2015-07-23T00:00:00
rapporteur
name: BALAS Guillaume group: Progressive Alliance of Socialists and Democrats abbr: S&D
shadows
committees/0
body
EP
shadows
responsible
True
committee
EMPL
date
2015-07-23T00:00:00
committee_full
Employment and Social Affairs
rapporteur
group: S&D name: BALAS Guillaume
committees/1
type
Committee Opinion
body
EP
associated
False
committee_full
Transport and Tourism
committee
TRAN
date
2015-09-18T00:00:00
rapporteur
name: NILSSON Jens group: Progressive Alliance of Socialists and Democrats abbr: S&D
committees/1
body
EP
responsible
False
committee
FEMM
date
2015-10-07T00:00:00
committee_full
Women’s Rights and Gender Equality
rapporteur
group: S&D name: REGNER Evelyn
committees/2
type
Committee Opinion
body
EP
associated
False
committee_full
Womens Rights and Gender Equality
committee
FEMM
date
2015-10-07T00:00:00
rapporteur
name: REGNER Evelyn group: Progressive Alliance of Socialists and Democrats abbr: S&D
committees/2
body
EP
responsible
False
committee
TRAN
date
2015-09-18T00:00:00
committee_full
Transport and Tourism
rapporteur
group: S&D name: NILSSON Jens
docs
  • date: 2016-01-07T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE571.622 title: PE571.622 type: Committee draft report body: EP
  • date: 2016-02-18T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE571.749&secondRef=02 title: PE571.749 committee: FEMM type: Committee opinion body: EP
  • date: 2016-02-25T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE578.503 title: PE578.503 type: Amendments tabled in committee body: EP
  • date: 2016-03-10T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE575.343 title: PE575.343 type: Amendments tabled in committee body: EP
  • date: 2016-04-08T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE571.803&secondRef=02 title: PE571.803 committee: TRAN type: Committee opinion body: EP
  • date: 2016-12-21T00:00:00 docs: url: /oeil/spdoc.do?i=27542&j=0&l=en title: SP(2016)876 type: Commission response to text adopted in plenary
events
  • date: 2015-10-29T00:00:00 type: Committee referral announced in Parliament, 1st reading/single reading body: EP
  • date: 2016-07-13T00:00:00 type: Vote in committee, 1st reading/single reading body: EP
  • date: 2016-08-18T00:00:00 type: Committee report tabled for plenary, single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2016-0255&language=EN title: A8-0255/2016 summary: The Committee on Employment and Social Affairs adopted the own-initiative report by Guillaume BALAS (S&D, FR) on social dumping in the European Union. Members recalled that the growth in abusive practices and the increasing exercise of social dumping weaken support for the principle of the internal market and the competitiveness of businesses, in particular SMEs, undermine the rights of European workers and confidence in European integration and make genuine social convergence essential. Agriculture, building, construction, catering and food, transport, health, care and domestic services are the main sectors concerned. Reinforcing controls and coordination between and by Member States : Members recalled that, while there is no legally recognised and universally shared definition of social dumping, the concept covers a wide range of intentionally abusive practices and situations which can have an impact as regards three main dimensions: the economic aspect : the use by certain economic actors of illegal practices such as undeclared work or of abusive practices such as bogus self-employment can lead to major market distortions which are detrimental to bona fide companies, in particular SMEs; the social aspect : social dumping could lead to a situation of discrimination and unfair treatment between workers in the EU and deprive them of the effective exercise of their social and labour rights, including in respect of pay and social protection; the financial and budgetary aspect : the non-payment of due social security contributions and taxes as a result of social dumping represents a threat to the financial sustainability of social security systems and the public finances of the Member States. Faced with this situation, Members stated that it is crucial to ensure a level playing field and fair competition across the EU and to eliminate social dumping . They called on the Member States to: increase efficiency and to secure appropriate staffing levels and resources for their control bodies (including social and/or labour inspectorates, agencies and liaison offices), including for interpretation and translation, inter alia through the exchange of best practices; improve cross-border cooperation between inspection services and the electronic exchange of information and data, in order to improve the efficiency of controls intended to combat and prevent social fraud, bogus self-employment and undeclared work, while recognising the importance of data protection, and with a view to mandatory cooperation and mutual assistance between Member States; draw up Union-wide in-service training programmes for inspectors, to identify new techniques used to circumvent the rules, and to organise cross-border cooperation; create, where applicable, ad hoc bilateral task forces and, where needed, a multilateral task force including national competent authorities and labour inspectors, to carry out, subject to the approval of all the Member States concerned, on-the-spot cross-border checks, in accordance with the national law of the Member States in which the controls take place, in suspected cases of social dumping; improve considerably information exchange concerning social security for posted workers, with a view to improving the enforcement of existing legislation and to cooperate across borders in relation to enforcement information. The report recommended that, in the case of posting, it should be made mandatory in all Member States to submit a declaration when the provision of services commences, at the latest, and that such declarations should be entered in a European register . It also called for an EU-wide list of enterprises , including letterbox companies, responsible for serious breaches of European labour and social legislation to be drawn up – after they have received prior warning – which can be consulted only by the relevant authorities. It called for these enterprises to be denied access to public contracts, public subsidies and EU funds for a statutory period. Addressing regulatory gaps : Members called on the Commission to monitor carefully the implementation of Directive 2014/67/EU and the effectiveness of the Platform Tackling Undeclared Work in combating the phenomenon of letterbox companies by applying more generally the principle that each company should have one main corporate headquarters and ensuring that in cases of free provision of services using posted workers, each service provider involved should perform a 'genuine activity' in the Member State of establishment. As regards mobile workers , the report called for the stepping-up of checks in relation to compliance with work, standby, driving and rest times in all relevant sectors, such as construction, catering, health and transport (road), and for the imposition of penalties for serious non-compliance. It called on the Commission to: consider creating a European Road Transport Agency to ensure proper implementation of EU legislation and promote standardisation and cooperation among all Member States as regards road transport; draw up a national collective agreement in all Member States, in cooperation with the social partners, in order to guarantee certain rules on rest times and suitable social safeguards, above all in the event of acquisitions by airlines outside the EU. Members also recalled the importance of tying the development of the digital and sharing economy to the protection of workers in this new sector, where more flexible working practices may result in forms of employment with lower standards as regards social security, working time, working location, training, worker participation and employment protection. Towards upward social convergence : recalling the Commission's commitment to establishing a pillar of social rights, Members stressed the need for upward social convergence in order to achieve the objectives set out in Article 151 TFEU. The Commission urged the Commission, in the specific recommendations it makes to the Member States as part of the European Semester , to incorporate opinions on social issues with a view to enhancing worker protection through convergence. The Commission should also examine the possibility of establishing an instrument whereby companies can be subject to a greater duty of care for which they may be held liable, in respect of both their subsidiaries and their subcontractors operating in third countries, in order to prevent human rights violations, corruption, severe physical injury or environmental damage and the violation of ILO conventions.
  • date: 2016-09-13T00:00:00 type: Debate in Parliament body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20160913&type=CRE title: Debate in Parliament
  • date: 2016-09-14T00:00:00 type: Results of vote in Parliament body: EP docs: url: https://oeil.secure.europarl.europa.eu/oeil/popups/sda.do?id=27542&l=en title: Results of vote in Parliament
  • date: 2016-09-14T00:00:00 type: Decision by Parliament, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2016-0346 title: T8-0346/2016 summary: The European Parliament adopted by 458 to 199 with 34 abstentions a resolution on social dumping in the European Union. Members recalled that the growth in abusive practices and the increasing exercise of social dumping weaken support for the principle of the internal market and the competitiveness of businesses, in particular SMEs, undermine the rights of European workers and confidence in European integration. Posted workers make up about 0.7 % of the entire EU labour force. Agriculture, building, construction, catering and food, transport, health, care and domestic services are the main sectors concerned. Reinforcing controls and coordination between and by Member States : Parliament recalled that, while there is no legally recognised and universally shared definition of social dumping, the concept covers a wide range of intentionally abusive practices and situations which can have an impact as regards three main dimensions: the economic aspect : the use by certain economic actors of illegal practices such as undeclared work or of abusive practices such as bogus self-employment can lead to major market distortions which are detrimental to bona fide companies, in particular SMEs; the social aspect : social dumping could lead to a situation of discrimination and unfair treatment between workers in the EU and deprive them of the effective exercise of their social and labour rights, including in respect of pay and social protection; the financial and budgetary aspect : the non-payment of due social security contributions and taxes as a result of social dumping represents a threat to the financial sustainability of social security systems and the public finances of the Member States. Faced with this situation, Members stated that it is crucial to ensure a level playing field and fair competition across the EU and to eliminate social dumping . They called on the Member States to: increase efficiency and to secure appropriate staffing levels and resources for their control bodies (including social and/or labour inspectorates), through the exchange of best practices and through meeting the benchmark of one labour inspector for every 10 000 workers; improve cross-border cooperation between inspection services and the electronic exchange of information and data, with a view to mandatory cooperation and mutual assistance between Member States; draw up Union-wide in-service training programmes for inspectors, to identify new techniques used to circumvent the rules, and to organise cross-border cooperation; create, where applicable, ad hoc bilateral task forces and, where needed, a multilateral task force including national competent authorities and labour inspectors, to carry out, subject to the approval of all the Member States concerned, on-the-spot cross-border checks, in accordance with the national law of the Member States in which the controls take place, in suspected cases of social dumping; establish legal frameworks allowing the lawful employment of domestic workers and carers , in order to provide legal certainty for employers and fair terms of employment as well as decent working conditions for workers; improve considerably information exchange concerning social security for posted workers, with a view to improving the enforcement of existing legislation. Parliament recommended that, in the case of posting, it should be made mandatory in all Member States to submit a declaration when the provision of services commences, at the latest, and that such declarations should be entered in a European register . It also called for an EU-wide list of enterprises , including letterbox companies, responsible for serious breaches of European labour and social legislation to be drawn up – after they have received prior warning – which can be consulted only by the relevant authorities. It called for these enterprises to be denied access to public contracts, public subsidies and EU funds for a statutory period. Addressing regulatory gaps : Members called on the Commission to; monitor carefully the implementation of Directive 2014/67/EU and the effectiveness of the Platform Tackling Undeclared Work in combating the phenomenon of letterbox companies by applying more generally the principle that each company should have one main corporate headquarters and ensuring that in cases of free provision of services using posted workers, each service provider involved should perform a 'genuine activity' in the Member State of establishment, and therefore be a genuine undertaking ; monitor carefully the application of the obligation placed on Member States by that directive to provide for measures ensuring that, in the construction sector, posted workers in subcontracting chains can hold the contractor of which their employer is a direct subcontractor liable as regards respect for their rights as workers; As regards mobile workers , Parliament called for the stepping-up of checks in relation to compliance with work, standby, driving and rest times in all relevant sectors, such as construction, catering, health and transport (road), and for the imposition of penalties for serious non-compliance. It called on the Commission to: consider creating a European Road Transport Agency to ensure proper implementation of EU legislation and promote standardisation and cooperation among all Member States as regards road transport. Furthermore, it rejected any further liberalisation of cabotage until the implementation of the current legal framework has been strengthened. Members also: stressed t he need for the Commission and the Member States to monitor and ensure proper enforcement of national social legislation and collective agreements for airlines having operational bases on EU territory; recalled the importance of tying the development of the digital and sharing economy to the protection of workers in this new sector, where more flexible working practices may result in more precarious and less regulated employment. Towards upward social convergence : recalling the Commission's commitment to establishing a pillar of social rights, Members stressed the need for upward social convergence in order to achieve the objectives set out in Article 151 TFEU. The adoption of a pillar of social rights should not lead to the lowering of existing labour and social standards. They recommended the establishment of wage floors in the form of a national minimum wage , with the objective of gradually attaining at least 60 % of the respective national average wage, if possible, so as to avoid excessive wage disparities. The Commission should also examine the possibility of establishing an instrument whereby companies can be subject to a greater duty of care for which they may be held liable, in respect of both their subsidiaries and their subcontractors operating in third countries, in order to prevent human rights violations, corruption, severe physical injury or environmental damage and the violation of ILO conventions.
  • date: 2016-09-14T00:00:00 type: End of procedure in Parliament body: EP
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  • body: EC dg: url: http://ec.europa.eu/social/ title: Employment, Social Affairs and Inclusion commissioner: THYSSEN Marianne
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2016-09-17Show (3) Changes | Timetravel
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  • The Committee on Employment and Social Affairs adopted the own-initiative report by Guillaume BALAS (S&D, FR) on social dumping in the European Union.

    Members recalled that the growth in abusive practices and the increasing exercise of social dumping weaken support for the principle of the internal market and the competitiveness of businesses, in particular SMEs, undermine the rights of European workers and confidence in European integration and make genuine social convergence essential. Agriculture, building, construction, catering and food, transport, health, care and domestic services are the main sectors concerned.

    Reinforcing controls and coordination between and by Member States: Members recalled that, while there is no legally recognised and universally shared definition of social dumping, the concept covers a wide range of intentionally abusive practices and situations which can have an impact as regards three main dimensions:

    • the economic aspect: the use by certain economic actors of illegal practices such as undeclared work or of abusive practices such as bogus self-employment can lead to major market distortions which are detrimental to bona fide companies, in particular SMEs; 
    • the social aspect: social dumping could lead to a situation of discrimination and unfair treatment between workers in the EU and deprive them of the effective exercise of their social and labour rights, including in respect of pay and social protection; 
    • the financial and budgetary aspect: the non-payment of due social security contributions and taxes as a result of social dumping represents a threat to the financial sustainability of social security systems and the public finances of the Member States.

    Faced with this situation, Members stated that it is crucial to ensure a level playing field and fair competition across the EU and to eliminate social dumping. They called on the Member States to:

    • increase efficiency and to secure appropriate staffing levels and resources for their control bodies (including social and/or labour inspectorates, agencies and liaison offices), including for interpretation and translation, inter alia through the exchange of best practices;
    • improve cross-border cooperation between inspection services and the electronic exchange of information and data, in order to improve the efficiency of controls intended to combat and prevent social fraud, bogus self-employment and undeclared work, while recognising the importance of data protection, and with a view to mandatory cooperation and mutual assistance between Member States;
    • draw up Union-wide in-service training programmes for inspectors, to identify new techniques used to circumvent the rules, and to organise cross-border cooperation;
    • create, where applicable, ad hoc bilateral task forces and, where needed, a multilateral task force including national competent authorities and labour inspectors, to carry out, subject to the approval of all the Member States concerned, on-the-spot cross-border checks, in accordance with the national law of the Member States in which the controls take place, in suspected cases of social dumping;
    • improve considerably information exchange concerning social security for posted workers, with a view to improving the enforcement of existing legislation and to cooperate across borders in relation to enforcement information.

    The report recommended that, in the case of posting, it should be made mandatory in all Member States to submit a declaration when the provision of services commences, at the latest, and that such declarations should be entered in a European register. It also called for an EU-wide list of enterprises, including letterbox companies, responsible for serious breaches of European labour and social legislation to be drawn up – after they have received prior warning – which can be consulted only by the relevant authorities. It called for these enterprises to be denied access to public contracts, public subsidies and EU funds for a statutory period.

    Addressing regulatory gaps: Members called on the Commission to monitor carefully the implementation of Directive 2014/67/EU and the effectiveness of the Platform Tackling Undeclared Work in combating the phenomenon of letterbox companies by applying more generally the principle that each company should have one main corporate headquarters and ensuring that in cases of free provision of services using posted workers, each service provider involved should perform a 'genuine activity' in the Member State of establishment.

    As regards mobile workers, the report called for the stepping-up of checks in relation to compliance with work, standby, driving and rest times in all relevant sectors, such as construction, catering, health and transport (road), and for the imposition of penalties for serious non-compliance. It called on the Commission to:

    • consider creating a European Road Transport Agency to ensure proper implementation of EU legislation and promote standardisation and cooperation among all Member States as regards road transport;
    • draw up a national collective agreement in all Member States, in cooperation with the social partners, in order to guarantee certain rules on rest times and suitable social safeguards, above all in the event of acquisitions by airlines outside the EU.

    Members also recalled the importance of tying the development of the digital and sharing economy to the protection of workers in this new sector, where more flexible working practices may result in forms of employment with lower standards as regards social security, working time, working location, training, worker participation and employment protection.

    Towards upward social convergence: recalling the Commission's commitment to establishing a pillar of social rights, Members stressed the need for upward social convergence in order to achieve the objectives set out in Article 151 TFEU. The Commission urged the Commission, in the specific recommendations it makes to the Member States as part of the European Semester, to incorporate opinions on social issues with a view to enhancing worker protection through convergence.

    The Commission should also examine the possibility of establishing an instrument whereby companies can be subject to a greater duty of care for which they may be held liable, in respect of both their subsidiaries and their subcontractors operating in third countries, in order to prevent human rights violations, corruption, severe physical injury or environmental damage and the violation of ILO conventions.
2016-09-02Show (1) Changes | Timetravel
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activities
  • date: 2015-10-29T00:00:00 body: EP type: Committee referral announced in Parliament, 1st reading/single reading committees: body: EP shadows: group: EPP name: ŠOJDROVÁ Michaela group: GUE/NGL name: SYLIKIOTIS Neoklis group: Verts/ALE name: DELLI Karima group: EFD name: AGEA Laura responsible: True committee: EMPL date: 2015-07-23T00:00:00 committee_full: Employment and Social Affairs rapporteur: group: S&D name: BALAS Guillaume body: EP responsible: False committee: FEMM date: 2015-10-07T00:00:00 committee_full: Women’s Rights and Gender Equality rapporteur: group: S&D name: REGNER Evelyn body: EP responsible: False committee: TRAN date: 2015-09-18T00:00:00 committee_full: Transport and Tourism rapporteur: group: S&D name: NILSSON Jens
committees
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  • body: EP responsible: False committee: FEMM date: 2015-10-07T00:00:00 committee_full: Women’s Rights and Gender Equality rapporteur: group: S&D name: REGNER Evelyn
  • body: EP responsible: False committee: TRAN date: 2015-09-18T00:00:00 committee_full: Transport and Tourism rapporteur: group: S&D name: NILSSON Jens
links
other
  • body: EC dg: url: http://ec.europa.eu/social/ title: Employment, Social Affairs and Inclusion commissioner: THYSSEN Marianne
procedure
dossier_of_the_committee
EMPL/8/03787
reference
2015/2255(INI)
title
Social dumping in the European Union
legal_basis
Rules of Procedure of the European Parliament EP 052
stage_reached
Awaiting committee decision
subtype
Initiative
type
INI - Own-initiative procedure
subject
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