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BackThe social responsibility of employers should not remain just a catchword: the European Parliament therefore prepared an initiative report, asking the Commission to develop a joint legal instrument at European level, which regulates the rights of employees along the entire production chain, i.e. from the general contractor up to all sub-contractors in an equal and fair manner. Last Monday, an initial debate took place in the Employment Committee of the European Parliament.
The background of this initiative report was the increased placing of sub-contracts, which can be observed Europe-wide. For several decades now, corporate tasks have been allocated in the credo of “Outsourcing” to third parties that are allegedly able to fulfil these in a more efficient and flexible manner. This trend does not only make its presence felt in the construction sector, but also in areas such as the cleaning industry or in the transportation sector. The allocation of sub-contracts developed into a central management idea to lower costs and to increase production capacities and profits.
The other side of the coin, however, clearly shows that the majority of these saving potentials can only be realized by implementing inferior social protection of employees working for subcontracting undertakings. The allocation of sub-contracts leads to a greater complexity of relationships between parent companies and their affiliates or between general contractor and sub-contractor respectively. As a result, it becomes more difficult to recognise responsibilities or liabilities of the various players involved. Based on this methodology, employers succeed in externalizing the social responsibilities for their employees; hence the “social” costs. That way, employees are deprived of their socio-political achievements and society becomes a two-tier system: on the one hand are people with regular employment relationships and on the other hand the so-called precarity with inferior labour-law related and social protection.
In the report, the European Parliament positively mentions eight Member States (Austria, Belgium, Finland, France, Germany, Italy, the Netherlands and Spain) that have already introduced national liability regulations to counteract this development. The author of the parliamentary report Lasse Lethinen (Social Democratic Party Europe), however, is convinced that European problems could be solved most effectively with European solutions. Therefore, the European Parliament has asked the Commission to take the following necessary steps:
For further information:
Draft Report on the social responsibility of subcontracting undertakings in production chains
The other side of the coin, however, clearly shows that the majority of these saving potentials can only be realized by implementing inferior social protection of employees working for subcontracting undertakings. The allocation of sub-contracts leads to a greater complexity of relationships between parent companies and their affiliates or between general contractor and sub-contractor respectively. As a result, it becomes more difficult to recognise responsibilities or liabilities of the various players involved. Based on this methodology, employers succeed in externalizing the social responsibilities for their employees; hence the “social” costs. That way, employees are deprived of their socio-political achievements and society becomes a two-tier system: on the one hand are people with regular employment relationships and on the other hand the so-called precarity with inferior labour-law related and social protection.
In the report, the European Parliament positively mentions eight Member States (Austria, Belgium, Finland, France, Germany, Italy, the Netherlands and Spain) that have already introduced national liability regulations to counteract this development. The author of the parliamentary report Lasse Lethinen (Social Democratic Party Europe), however, is convinced that European problems could be solved most effectively with European solutions. Therefore, the European Parliament has asked the Commission to take the following necessary steps:
- To develop a clearly defined common legal instrument for introducing joint and several liability at European level;
- To submit a proposal for a Seal of Social Responsibility, which is based on criteria such as adhering to core labour standards, social rights, further education/advanced training of employees and equal treatment;
- To regulate the joint and several liability for general or main contractors to combat the misuse in the area of cross-border order delegation and outsourcing;
- Authorities have been asked to enact or to further develop relevant provisions of law at the G-20 summit in Washington. Those companies, who have provably infringed against employment regulations, collective labour agreements or codes of conduct, should be excluded from being awarded public contracts.
For further information:
Draft Report on the social responsibility of subcontracting undertakings in production chains