Letta report overshadowed by misplaced arguments on gold-plating

Reacting to Letta’s much-anticipated report, the ETUC warns against attempts to apply ‘over-transposition’ arguments to employment directives. The generalised criticism of ‘gold-plating’, i.e. the ability of governments to go above and beyond in the transposition of EU directives, should not be applied to employment directives as it risks limiting the ability of national governments and social partners to lift labour standards at national level. 

Member states must be free to guarantee higher levels of protection. The ability of trade unions and employers to reach collective agreements that go beyond basic minimum protections must be safeguarded.  

"The report contains a lot of good recommendations that should be taken up. For example, applying social conditionality to public spending, ensuring that public procurement guarantees collective agreements, regulating subcontracting chains and addressing the real problem of spiralling housing costs. But the threat of governments using the gold-plating agenda to limit employment rights to what is in employment directives must be taken off the table," said Esther Lynch, ETUC General Secretary. 

"Addressing fragmentation must not be code for dismantling protections for working people. Workers need more protections from unscrupulous employers who deliberately use single market loopholes to circumvent workers’ rights, in particular in situations of posting."

"It is particularly worrying that this push back against national regulation comes amid a campaign by businesses for deregulation at EU level."

Social focus 

There are many positive aspects in this report. Letta’s proposals on public procurement, social conditionality and regulating subcontracting chains are vital. We welcome the statement: “Public procurement regulations must ensure that contracts foster the creation of high-quality jobs, characterised by fair wages and conditions underpinned by collective agreements”. 

The report further aligns with our analysis on the need for investment. Restricting the fiscal space of countries jeopardizes our ability to achieve social objectives. Letta’s recommendations echo our call for sustainable investment that benefits workers, businesses, and society as a whole.  

The ETUC will analyse the full extent of positives and negatives of the Letta report and consult, in particular, with our sectors. “We need to separate the baby from the bathwater,” concluded Esther Lynch.