Members of the European Parliament today called to regulate abusive subcontracting and labour intermediation to prevent the exploitation of workers by fraudulent companies and criminal networks.
After trade unionists of the key impacted sectors EFFAT, ETF and EFBWW, with the support of ETUC, rallied outside the European Parliament in Brussels to demand action this morning, the Parliament’s employment committee voted in favour of an own initiative report which highlights how long and complex subcontracting chains allow criminal gangmasters and business models built on labour exploitation to gain a foothold in the European economy.
Workers came to the European Parliament in October to tell MEPs what that means on the ground. Wage theft, dangerous working conditions and overcrowded accommodation were among the problems they said were rife in the industries where subcontracting is common. “The intermediary charges €0.50 for each hour worked by each worker, €6 per day for transport, and up to €180 per month for an accommodation which is always deplorable and overcrowded,” said Rachid, an agricultural worker in Spain.
Trade unions are campaigning for a European directive to regulate labour intermediaries and limit subcontracting chains to a maximum of two tiers. Following today’s vote by the employment committee, the resolution will be voted on at the European Parliament’s plenary session between January 20 and 22.
ETUC General Secretary Esther Lynch said:
“Workers need EU action to put a stop to the abuse that is seeping into the cracks that have appeared in the European social model. The quality jobs package, set to be launched tomorrow by the Commission, is a crucial opportunity.
“The EU cannot plaster over structural weaknesses and pretend they are not there. Binding rules that tackle abuse in subcontracting and labour intermediaries have to be part of the solution.”
ETUC Deputy General Secretary Isabelle Schömann said:
“Abusive subcontracting chains have allowed the development of a shadow economy in Europe to the benefit of fraudsters and criminals and the detriment of workers and the majority of businesses.
“People working side-by-side in factories, on farms, in transport or building sites are treated unequally and often don't even know who they are employed by.
“It allows the gang-like labour intermediaries to act with absolute impunity, stealing or withholding wages, failing to respect even basic safety rules, and charging workers for uninhabitable accommodation.
“Workers don’t know how to contact their anonymous employer, trade unions are aggressively shut out, and labour inspectors don’t have the resources to deal with the scale of the problem.
“The Commission must act to stop such business practices in the single market to sanction the wild west in subcontracting. The European Parliament report recognises the need for legislative action at European level. The ETUC will continue pushing for solutions to end the abuse workers face and will be mobilising on 20 January 2026 in Strasbourg ahead of the next vote in plenary.”
