Trade unionists from across Europe demonstrated in Brussels today against loopholes in the 'EU Inc' policy which would undermine workers' rights.
The European Trade Union Confederation (ETUC), together with its Belgian affiliates: ACV-CSC, FGTB-ABVV and SYNOVA, held a rally at Schuman at 10am to coincide with an EU Council meeting on the issue.
Unions told national ministers visiting Brussels to "fix or sink" the legislation, also known as the 28th Company Regime, which currently risks starting a race to the bottom across Europe.
A legal analysis by the European Trade Union Institute found it would allow companies to:
- Register in Member States with low social standards even when workers are elsewhere;
- Offer stock options in place of wages or an employment contract;
- Circumvent workers' rights to co-determination and board-level representation;
- Avoid their obligations to inform and consult workers on decisions;
- Fast-track liquidations in a way which could leave workers with unpaid wages.
The ETUC called for ministers to introduce safeguards into the legislation. The European Commission said it did not intend for the legislation to affect workers' rights but did not include any legally binding safeguards, leaving loopholes which could be exploited by bad bosses.
Speaking ahead of the demonstration, ETUC General Secretary Esther Lynch said:
"The loopholes in the EU Inc policy are so big they could be seen from space and they will be easily exploited by bad bosses unless proper legal safeguards are included.
"As it stands, EU Inc would allow a company based in Belgium, carrying out work in Belgium, to register in Bulgaria, which currently has the lowest minimum wage in the EU, and employ their workers on lower wages and conditions.
"That is clearly absurd and could be easily fixed if, as the Commission insists is the case, the intention of this policy is not to start a race to the bottom across Europe.
"Without safeguards, every legal right and collective agreement won by working people over the last 100 years would be at risk. We will not stand by and see that happen.
"Our message to ministers meeting to discuss EU Inc today is simple: fix it or sink it."
