ETUC demands major changes to the draft directive on services in the internal market

Brussels, 12/11/2004

The European Trade Union Confederation (ETUC) has warned MEPs that some proposals in the controversial ‘Bolkestein' Directive threaten both workers' rights and the supply of essential services to European citizens.

At the public hearing of the European Parliament's Committee on the Internal Market and Consumer Protection in Brussels (11/11/04), set up to examine the European Commission's proposed Bolkestein Directive (on services in the internal market), the ETUC strongly urged MEPs to make fundamental amendments to the existing draft, in order to safeguard and strengthen social protection and cohesion in Europe.

“The ETUC has always adopted a positive stance on the creation of a European internal market, which can lead to more growth, employment and a higher level of welfare,” said ETUC General Secretary John Monks. “But it has to go hand in hand with social protection and adequate workers' rights and conditions. To work well, markets need to be based on clear rules that promote high standards of conduct and quality that people can trust.”

The confederation believes that the existing proposal swings too far in favour of deregulation and fails to uphold the vital social dimension of the EU's Lisbon Strategy.

The European trade union movement is opposed to the method proposed for creating an internal market for services in the EU.
1. The ‘country of origin' principle poses a severe threat to a well-functioning internal market for services, especially with regard to employment and services of general interest (SGI).

2. Labour laws and collective agreements must not be treated as obstacles to be eliminated. On the contrary, they form an essential ingredient of Social Europe, guaranteeing the quality of employment and security for workers. As proposed, the country of origin principle cuts back even the low level of protection that currently exists, (specifically in the Posted Workers Directive) and will damage industrial relations, especially in the absence of European rules on temporary agency work.

3. Market forces must not take priority when it comes to services of general interest. Increased competition will endanger the public service role of SGIs, which should be protected by European legislation. Health services are particularly vulnerable, and state intervention is required to guarantee good quality care and protect patients from excessive charges.

4. There has been no serious or adequate assessment of the impact of these measures. The ETUC has not been consulted; even though the proposals relate closely to the world of work and their consequences could be grave for social cohesion in Europe.

The hearing demonstrated that these concerns are shared by a large number of the invited experts. The ETUC welcomes this evidence and hopes that the European Parliament will take it into account.