The European Single Market is regarded as one of the achievements of European integration. In October 2015, the European Commission presented its new Single Market Strategy, in which it outlines how this market should be further developed and promoted. In how far these initiative proposals influence employees’ rights was the subject of a discussion event, which was hosted by ÖGB Europabüro, the Brussels Office of the Austrian Federation of Trade Unions, AK EUROPA as well as the Liaison Office of the German Trade Union Confederation at the Vienna House on April 5th.

To begin with, Frank Ey (Department for EU and International Affairs, Chamber of Labour Vienna) illustrated the difficult situation in which the European Single Market currently finds itself because of rising unemployment and weak growth. He criticised that the supply-oriented policy of the Single Market and the priority given to SMEs with regard to the Better Regulation Agenda cannot be a sustainable strategy. In his opinion, the measures proposed by the Commission in respect of digital economy and public procurement would constitute positive aspects, as here in particular clear regulations would be needed in the interest of employees and consumers.

From the point of view of Beppo Muchitsch (Timber Industry and Construction Workers' Union and SPÖ Social Policy Spokesman in the Austrian Parliament), the Posting of Workers Directive causes unfair competition, which, even though it is legal, results in wage and social dumping. He demands to reduce posting periods and to apply the same criteria to all for whom social insurance contributions are paid within a country.

In her capacity as an MEP of the S&D fraction in the European Parliament, Evelyn Gebhardt welcomed the fact that the Parliament had succeeded in determining that with regard to public procurement law, not the cheapest offer had to be accepted, but that social and environmental criteria also had to be taken into account. She sees great opportunities in the Single Market; however, she demands a commitment to a social market economy, which focusses on qualitative growth and employees.

The representative of the Commission, Eike Klapper, pointed out that the Communication presents many important initiatives on a wide range of subjects such as collaborative economy, start-ups, standardisation, intellectual property etc., where one would try to reconcile all wishes and ideas. In doing so, the Communication would offer opportunities on three levels: for SMEs, for employees and for consumers. No Directive is currently planned with regard to sharing economy; instead, the focus is on an approach in accordance with the best-practice principle. The reason for this would be the wide range of national ways to handle it and the countless different forms in digital economy.

Further information:

AK Position Paper

Communication from the Commission

Taking a Closer Look at the Single Market Strategy

Committee Report: On the Single Market Strategy of the Commission

Pictures of the event