Ministers for Employment and Social Affairs from the Party of European Socialists (PES) met ahead of the EPSCO Council, discussing the need for strong EU action to tackle abusive subcontracting practices, progressive priorities and social safeguards on the Commission proposal for a 28th Company Regime, and strengthening worker protections during extreme heat.
PES ministers adopted a joint declaration [see the declaration here] on combatting abusive practices in long subcontracting chains and labour intermediation, in response to an observed pattern of subcontracting being misused to drive down wages, weaken labour standards, create unfair competition and expose workers to exploitation. PES ministers called on the European Commission to take legislative measures protecting workers throughout subcontracting chains. They stand with workers and trade unions in calling for quality jobs and fairness at the heart of Europe’s labour market.
Discussions also highlighted the Commission’s 28th Company Regime (EU Inc.) proposal, where ministers reaffirmed their opposition to a 28th regime that undermines workers’ rights. In line with the approach of the S&D Group in the European Parliament and the work on the 28th Company Regime steered by MEPs René Repasi and Gaby Bischoff, innovation must always sustain our social fabric.
Reflecting on recent extreme heat patterns across Europe, exacerbated by climate change, ministers reiterated the need to protect workers and guarantee health and safety in high temperatures.
Ministers also welcomed the EU Social Package, including the publication of the first-ever EU Anti-Poverty Strategy, as spearheaded by European Commission Executive Vice-President, Roxana Mînzatu.
Korinna Schumann, Chair of the meeting and Austrian Minister of Labour, Social Affairs, Health, Care and Consumer Protection:
“Subcontracting must never be used to exploit workers, for social dumping, or to circumvent employer responsibilities. Europe must act to ensure equal treatment for equal work, strengthen accountability throughout subcontracting chains and protect workers from abuse.
As extreme heat is becoming a reality for millions of workers across Europe, we are also fighting to tackle both the climate crisis and to protect workers.
Our message is clear: We need ambitious legislation to protect workers and ensure quality jobs. A strong Single Market must go hand in hand with social justice. Innovation must always sustain our social fabric. This is at the heart of the Social Europe we are building together.”
PES Employment and Social Affairs Ministers reaffirmed their shared commitment to building a stronger social Europe that delivers quality jobs, social protection and equal opportunities for all.
Key messages of the declaration for further information
- Equal treatment for equal work, so that subcontracted workers receive the same pay, rights, training opportunities and workplace protections as workers directly employed by a company;
- Joint and several liability across subcontracting chains, guaranteeing workers can effectively enforce their rights and employers cannot evade their obligations;
- Limits on long and complex subcontracting chains and prohibitions in high-risk sectors, examples of which may constitute construction, transport, logistics, agriculture, food processing and abattoirs;
- Stronger measures against bogus posting and letterbox companies, alongside a strengthened European Labour Authority to improve cross-border enforcement and combat social dumping;
- Public money supporting quality jobs and responsible employers, ensuring that public procurement rewards companies that respect workers’ rights, collective bargaining and fair wages;
- A public EU-wide register of subcontractors to improve transparency, strengthen enforcement and prevent repeat offenders from benefiting from public contracts;
- Full transparency throughout subcontracting chains, so that workers, trade unions and labour inspectorates can identify responsibilities and enforce labour standards;
- A ban on unfair recruitment practices, including bogus recruitment fees and other abusive practices that trap workers in dependency, debt and exploitation.
Participants
- Korinna Schumann, Minister of Labour, Social Affairs, Health, Care and Consumer Protection, Austria, Chair
- Michael Schäfer, State Secretary at the Federal Ministry of Labour and Social Affairs, Germany
- Saulius Davainis, Deputy Minister for Social Security and Labour, Lithuania
- Sebastian Gajewski, Deputy Minister of Family, Labour and Social Affairs, Poland
- Roxana Mînzatu, Executive Vice-President for Social Rights and Skills, Quality Jobs and Preparedness, European Commission
- Gaby Bischoff, S&D Vice-President, S&D Group in the European Parliament
- René Repasi, Rapporteur on 28th regime corporate legal framework – EU Inc., S&D Group in the European Parliament
- Esther Lynch, General Secretary, ETUC
