Page 156 - ePaper
P. 156
Employment and Social Developments in Europe 2014
4.2.2. Labour mobility Box 4: Job quality of posted workers
and free movement
of services within the EU The 1996 Posting of Workers Directive ( ) requires Member States to ensure that
1
may affect job quality posted workers are subject to the host country’s laws, regulations or administra-
tive provisions, and generally applicable collective agreements in the construction
Strengthening labour mobility and free sector as regards a core of employment conditions, such as: applicable minimum
movement of services (such as posted wages, maximum work and minimum rest periods, minimum paid annual leave,
workers) within the single market can health, safety and hygiene at work, employment terms for pregnant women and
have an important impact on job quality young people, rules prohibiting child labour, and equality of treatment between
and productivity. men and women. However, the Commission’s close monitoring of the implemen-
tation of the 1996 Directive found that the rules laid down by the Directive were
Labour mobility can have a positive not always correctly applied in practice by Member States.
impact on job quality as it can reduce
the risk of unemployment and increase This led the Commission in 2012 to table a proposal for an Enforcement Directive,
employment opportunities in more pro- aimed at providing clearer rules on posted workers and practical safeguards. A new
2
ductive activities, thus yielding higher Enforcement Directive( ) on the posting of workers based on the Commission’s
earnings for the workers involved. This proposal was subsequently adopted by the co-legislator in May 2014. Some of
is especially true for workers in sectors the measures in the new Directive are: a clearer definition of posting to inhibit the
that are vulnerable to ongoing structural growth of letter-box companies; a list of national control measures that the Mem -
changes (e.g. energy-intensive industries). ber States may impose on posting companies; the possibility for Member States to
Nevertheless, labour mobility within the require the designation of a contact person within the posting company to liaise
EU is still only taking place on a small with enforcement authorities; the option of applying an obligation to declare the
scale despite the considerable opportuni - identity of the company, the number of workers, their period of posting and the
ties offered by the EU single market( ). nature of services, and to keep basic documents such as employment contracts
67
This is the combined outcome of factors and payslips available at the workplace. Moreover, the new Directive includes
such as language barriers or family con- the provision that penalties imposed on service providers in one Member State
straints, as well as skill mismatches (such can be enforced and recovered in another. In addition, it also introduces a limited
as in the case of coal miners — ILO and subcontracting liability in the construction sector. This means that posted workers
OECD, 2012). In such cases, workers tend in this sector can hold the contractor in a direct subcontractor relationship liable
to remain in their countries despite poor for any outstanding net remuneration corresponding to the minimum rates of
prospects for high quality jobs. pay, in addition to or in place of the employer.
( ) Directive 96/71/EC of 16 December 1996, available at http://eur-lex.europa.eu/LexUriServ/
1
The free movement of services may also 2 LexUriServ.do?uri=OJ:L:1997:018:0001:0006:EN:PDF
have a positive impact on job quality. The ( ) Directive 2014/67/EU of 15 May 2014, available at http://eur-lex.europa.eu/legal-content/EN/
TXT/PDF/?uri=CELEX:32014L0067&rid=1
free movement of services is one of the
founding principles of the European Union
(Article 56 TFEU). The principle of the free - companies to exploit their competitive Nevertheless, the job quality of posted
dom to provide services enables a busi- advantages across borders and to meet workers is a policy concern. Posted work -
ness providing services in one Member temporary shortfalls in labour supply ers may suffer abuses such as not being
State to offer services on a temporary (such as in construction and transport) ( ), appropriately or fully paid. In addition,
69
basis in another Member State, without while it may offer workers an opportunity one study found that only a very small
having to be established. The exercise of to increase their job quality. At the same minority of foreign workers were union -
this right entails that companies, when time, it may benefit European consum- ised compared to native workers ( ). In
71
providing services in another Member ers by increasing competition in the single turn, abuses may affect the job quality of
State, may need to post employees to market( ). residential workers by placing downward
70
work temporarily in an EU country other pressure on their wages and working con -
69
than the one where they are habitually ( ) Comparable estimates of the number ditions, with a potential negative impact
of posted workers across sectors,
68
employed. Posting workers( ) allows occupations and countries are not readily on their motivation and productivity. All in
available but some studies provide all, the empirical evidence on the impact
( ) At the end of 2012, 14 million EU citizens ad-hoc estimates. For example, Idea and
67
resided in another Member State, i.e. 2.8 % ECORYS (2011), European Commission of posted work on the job quality of resi -
of the total EU population, up from 1.6 % at (2011) and European Commission (2014) dent workers is scant and not clear-cut,
the end of 2004, but lower than the share of (June 2014 supplement to EU Employment
non-EU nationals (4 %) (European Commission, and Social Situation, available at http:// partly due to lack of adequate data.
2013b). On average the employment rate of ec.europa.eu/social/BlobServlet?docId=1194
mobile EU citizens was 67.7 % in 2012; mobile 5&langId=en) estimate that there are about
EU citizens not in employment represent only 1 million posted in the EU, employed in the To counteract such adverse outcomes,
a limited share (European Commission, 2013b). construction, transport, telecommunications, important EU measures have been put in
( ) A ‘posted worker’ is a worker who, for a limited entertainment, repairs, maintenance and place to ensure that posted workers are
68
period, carries out their work in the territory of servicing sectors, but also in specialised, high-
a Member State other than the Member State in skilled activities such as in the IT sector. not deprived of the protection of basic
which they normally work. Posted work relates ( ) Nevertheless, the impact of current regulations employment rights in the host country and
70
to the free movement of services and is legally on competition is not unambiguous. For
distinct from individual migration, which relates example, Mustilli and Pelkmans (2013) identify that enterprises face a level playing field
to the free movement of labour. For a summary the imposition of, for example, a minimum of competition (Box 4). Nevertheless, the
on EU legislation on posting of workers, see, wage for posted workers as a barrier to
for instance, http://europa.eu/legislation_ freedom of services in that it pre-empts
summaries/employment_and_social_policy/ Eastern European EU workers from exploiting ( ) See, for example, Hansen and Andersen (2008)
71
employment_rights_and_work_organisation/ their lower wages as a competitive advantage for the case of Eastern European workers
c10508_en.htm in the internal market. working in the Danish construction sector.
154
4.2.2. Labour mobility Box 4: Job quality of posted workers
and free movement
of services within the EU The 1996 Posting of Workers Directive ( ) requires Member States to ensure that
1
may affect job quality posted workers are subject to the host country’s laws, regulations or administra-
tive provisions, and generally applicable collective agreements in the construction
Strengthening labour mobility and free sector as regards a core of employment conditions, such as: applicable minimum
movement of services (such as posted wages, maximum work and minimum rest periods, minimum paid annual leave,
workers) within the single market can health, safety and hygiene at work, employment terms for pregnant women and
have an important impact on job quality young people, rules prohibiting child labour, and equality of treatment between
and productivity. men and women. However, the Commission’s close monitoring of the implemen-
tation of the 1996 Directive found that the rules laid down by the Directive were
Labour mobility can have a positive not always correctly applied in practice by Member States.
impact on job quality as it can reduce
the risk of unemployment and increase This led the Commission in 2012 to table a proposal for an Enforcement Directive,
employment opportunities in more pro- aimed at providing clearer rules on posted workers and practical safeguards. A new
2
ductive activities, thus yielding higher Enforcement Directive( ) on the posting of workers based on the Commission’s
earnings for the workers involved. This proposal was subsequently adopted by the co-legislator in May 2014. Some of
is especially true for workers in sectors the measures in the new Directive are: a clearer definition of posting to inhibit the
that are vulnerable to ongoing structural growth of letter-box companies; a list of national control measures that the Mem -
changes (e.g. energy-intensive industries). ber States may impose on posting companies; the possibility for Member States to
Nevertheless, labour mobility within the require the designation of a contact person within the posting company to liaise
EU is still only taking place on a small with enforcement authorities; the option of applying an obligation to declare the
scale despite the considerable opportuni - identity of the company, the number of workers, their period of posting and the
ties offered by the EU single market( ). nature of services, and to keep basic documents such as employment contracts
67
This is the combined outcome of factors and payslips available at the workplace. Moreover, the new Directive includes
such as language barriers or family con- the provision that penalties imposed on service providers in one Member State
straints, as well as skill mismatches (such can be enforced and recovered in another. In addition, it also introduces a limited
as in the case of coal miners — ILO and subcontracting liability in the construction sector. This means that posted workers
OECD, 2012). In such cases, workers tend in this sector can hold the contractor in a direct subcontractor relationship liable
to remain in their countries despite poor for any outstanding net remuneration corresponding to the minimum rates of
prospects for high quality jobs. pay, in addition to or in place of the employer.
( ) Directive 96/71/EC of 16 December 1996, available at http://eur-lex.europa.eu/LexUriServ/
1
The free movement of services may also 2 LexUriServ.do?uri=OJ:L:1997:018:0001:0006:EN:PDF
have a positive impact on job quality. The ( ) Directive 2014/67/EU of 15 May 2014, available at http://eur-lex.europa.eu/legal-content/EN/
TXT/PDF/?uri=CELEX:32014L0067&rid=1
free movement of services is one of the
founding principles of the European Union
(Article 56 TFEU). The principle of the free - companies to exploit their competitive Nevertheless, the job quality of posted
dom to provide services enables a busi- advantages across borders and to meet workers is a policy concern. Posted work -
ness providing services in one Member temporary shortfalls in labour supply ers may suffer abuses such as not being
State to offer services on a temporary (such as in construction and transport) ( ), appropriately or fully paid. In addition,
69
basis in another Member State, without while it may offer workers an opportunity one study found that only a very small
having to be established. The exercise of to increase their job quality. At the same minority of foreign workers were union -
this right entails that companies, when time, it may benefit European consum- ised compared to native workers ( ). In
71
providing services in another Member ers by increasing competition in the single turn, abuses may affect the job quality of
State, may need to post employees to market( ). residential workers by placing downward
70
work temporarily in an EU country other pressure on their wages and working con -
69
than the one where they are habitually ( ) Comparable estimates of the number ditions, with a potential negative impact
of posted workers across sectors,
68
employed. Posting workers( ) allows occupations and countries are not readily on their motivation and productivity. All in
available but some studies provide all, the empirical evidence on the impact
( ) At the end of 2012, 14 million EU citizens ad-hoc estimates. For example, Idea and
67
resided in another Member State, i.e. 2.8 % ECORYS (2011), European Commission of posted work on the job quality of resi -
of the total EU population, up from 1.6 % at (2011) and European Commission (2014) dent workers is scant and not clear-cut,
the end of 2004, but lower than the share of (June 2014 supplement to EU Employment
non-EU nationals (4 %) (European Commission, and Social Situation, available at http:// partly due to lack of adequate data.
2013b). On average the employment rate of ec.europa.eu/social/BlobServlet?docId=1194
mobile EU citizens was 67.7 % in 2012; mobile 5&langId=en) estimate that there are about
EU citizens not in employment represent only 1 million posted in the EU, employed in the To counteract such adverse outcomes,
a limited share (European Commission, 2013b). construction, transport, telecommunications, important EU measures have been put in
( ) A ‘posted worker’ is a worker who, for a limited entertainment, repairs, maintenance and place to ensure that posted workers are
68
period, carries out their work in the territory of servicing sectors, but also in specialised, high-
a Member State other than the Member State in skilled activities such as in the IT sector. not deprived of the protection of basic
which they normally work. Posted work relates ( ) Nevertheless, the impact of current regulations employment rights in the host country and
70
to the free movement of services and is legally on competition is not unambiguous. For
distinct from individual migration, which relates example, Mustilli and Pelkmans (2013) identify that enterprises face a level playing field
to the free movement of labour. For a summary the imposition of, for example, a minimum of competition (Box 4). Nevertheless, the
on EU legislation on posting of workers, see, wage for posted workers as a barrier to
for instance, http://europa.eu/legislation_ freedom of services in that it pre-empts
summaries/employment_and_social_policy/ Eastern European EU workers from exploiting ( ) See, for example, Hansen and Andersen (2008)
71
employment_rights_and_work_organisation/ their lower wages as a competitive advantage for the case of Eastern European workers
c10508_en.htm in the internal market. working in the Danish construction sector.
154
