This week, national Parliamentarians and EU Commissioner Marianne Thyssen discussed the revision of the Posting of Workers Directive in the EU Parliament.

In spring 2016, the EU Commission presented a proposal concerning the Revision of the Posting of Workers Directive. The objective of the new proposal is to ensure that posted workers are granted fair remuneration and with that fair competitive conditions. It shall be guaranteed that the same provisions on pay and working conditions apply to workers who have been posted. The new proposal does not bring any added value for Austria, as based on the collective agreements, Austrian employers are obliged to pay posted workers Austrian wages in all industries.

In spite of this minor progress, eleven, mainly East-Central European Member States regarded it as going too far. They showed the “yellow card”, as they considered the proposal to be in contradiction to the principle of subsidiarity. As a result, the EU Commission had to review its own proposal as to whether it indeed infringes the principle of subsidiarity. The EU-Commission let it be known in the summer that it would stick to the proposal as it did not interfere with the principle of subsidiarity.

Hence, clear lines have been drawn within Europe; between countries that demand improvement, such as Austria or France, and East-Central European countries that do not want to lose their competitive advantage. According to a report by Agence Europe, the European pendant to APA, after a compromise proposal of the Slovakian Presidency, the negotiations are now to move forward.

Debate in Parliament: East versus West?

The Employment Committee of the EU Parliament debated the proposal on the Posting of Workers Directive for the first time on Wednesday. Due to the controversy, the proposal has triggered in some Member States, the agenda of the Committee meeting included a debate with the EU Commissioner for Employment and Social Affairs, Marianne Thyssen, and with national Parliaments. More than 30 national Parliamentarians from 18 Member States took part in the debate.

Marianne Thyssen emphasised that the new proposal represents another step towards a social Europe and that the principle of subsidiarity would not be infringed. She argued that the proposal would fall within the competencies of the European Union, as postings are cross-border by definition and that therefore national actions alone would not be sufficient to prevent misuse. She also pointed out that this would not intervene with national industrial relations and wage setting systems.

This assessment was not shared by all speakers in the meeting. The debate with national Parliamentarians showed clear differences. Parliamentarians from Member States such as France, Sweden or Finland welcomed the proposal as a step towards upwards convergence. In contrast, their East-Central European colleagues voiced clear criticism. They accused Western Member States of using this Directive to safeguard their status quo. If one would regard Europe as a whole, one had to admit that we are still far away from the principle of the same pay for the same work at the same place.

Further information:

AK press release on the Posting of Workers Directive (only German)

Posting of Workers Directive NEW: A great success? Wrong!