News
BackThe proposal of the EU Commission concerning the intra corporate transfer of third-country nationals has now been on the table for over six months, during which time the Council has held negotiations behind closed doors. The European Economic and Social Committee (EESC) has also prepared a draft opinion and this week even held a very interesting public hearing on the subject. The European Parliament (EP) too is discussing the issue; however, not much else is currently happening.
The idea is to make intra corporate transfer of executive personnel, skilled personnel and trainees from third countries easier
Based on the submitted proposal, the EU Commission intends to harmonise the regulations on the admission of employees, who are transferred by a company with seat outside the EU to a company of the same corporate group within the Union, throughout the EU. The Chamber of Labour has rejected this proposal of the EU Commission from the outset as it is to be feared that it might lead to wage and social dumping. Although the idea is to make transferred employees subject to Austrian minimum wage regulations, no decision has been made yet as to how to control this. The integration of “trainees” and the hardly definable group of “skilled personnel” raises concerns that this will lead to squeezing out home grown trained graduates and already available employees. The definition of skilled personnel refers to employees, who have the industry-specific skills required in the hosting branch. The representative of the German Federal Labour Agency got it in a nutshell when he commented during the public hearing of the EESC that this would mean that intra corporate transfer would also apply to an Indian painter and decorator. If this is the target of the EU Commission, then it is only right to question the Directive proposal, given the fact that there must be a sufficient number of painters and decorators available in domestic labour markets.
Dispute in the EP on internal responsibility blocks progress
Actually, the responsible committee in the EP should long have taken up its work. However, recently a dispute has arisen whether the Committee on Civil Liberties or the Committee on Employment shall be responsible for this issue. The Conference of the Presidents at the European Parliament is responsible for solving the dispute; however, this seems to be more difficult than first anticipated. Currently it is not possible to predict when a solution will be found. It is assumed that it would be the end of March and that a first draft report can be expected at the end of April. There will also be no agreement at Council level under the Hungarian Presidency, as too many controversial points still exist. The Chamber of Labour will continue to make every effort in Brussels that the Directive proposal of the EU Commission does not open any loopholes for wage and social dumping.
Further information:
AK Position on the intra corporate transfer of third-country nationals
Preliminary draft of a statement of EWSA on the intra corporate transfer of third-country nationals (Rapporteur Oliver Röpke)
Based on the submitted proposal, the EU Commission intends to harmonise the regulations on the admission of employees, who are transferred by a company with seat outside the EU to a company of the same corporate group within the Union, throughout the EU. The Chamber of Labour has rejected this proposal of the EU Commission from the outset as it is to be feared that it might lead to wage and social dumping. Although the idea is to make transferred employees subject to Austrian minimum wage regulations, no decision has been made yet as to how to control this. The integration of “trainees” and the hardly definable group of “skilled personnel” raises concerns that this will lead to squeezing out home grown trained graduates and already available employees. The definition of skilled personnel refers to employees, who have the industry-specific skills required in the hosting branch. The representative of the German Federal Labour Agency got it in a nutshell when he commented during the public hearing of the EESC that this would mean that intra corporate transfer would also apply to an Indian painter and decorator. If this is the target of the EU Commission, then it is only right to question the Directive proposal, given the fact that there must be a sufficient number of painters and decorators available in domestic labour markets.
Dispute in the EP on internal responsibility blocks progress
Actually, the responsible committee in the EP should long have taken up its work. However, recently a dispute has arisen whether the Committee on Civil Liberties or the Committee on Employment shall be responsible for this issue. The Conference of the Presidents at the European Parliament is responsible for solving the dispute; however, this seems to be more difficult than first anticipated. Currently it is not possible to predict when a solution will be found. It is assumed that it would be the end of March and that a first draft report can be expected at the end of April. There will also be no agreement at Council level under the Hungarian Presidency, as too many controversial points still exist. The Chamber of Labour will continue to make every effort in Brussels that the Directive proposal of the EU Commission does not open any loopholes for wage and social dumping.
Further information:
AK Position on the intra corporate transfer of third-country nationals
Preliminary draft of a statement of EWSA on the intra corporate transfer of third-country nationals (Rapporteur Oliver Röpke)