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The European Commission is expected to take the floor at the European Parliament this week to discuss the issue of abusive subcontracting and labour intermediaries. Ahead of this announcement, the European Federation of Building and Woodworkers (EFBWW) is very clear: “The time has come to take action! Limit subcontracting and promote direct jobs, ban intermediaries in posting, and strengthen the enforcement mandate for the European Labour Authority (ELA). The forthcoming revision of the public procurement directive must also abolish the “lowest price principle” and include mandatory social clauses and stronger measures that allow for the automatic exclusion of companies that have been involved in social dumping practices.
These are some of the basic ingredients for a Quality Jobs Roadmap. Solving the issue of labour and skills shortages cannot be achieved through abuse and exploitation. The EFBWW defends an internal market based on direct jobs, fair mobility, fair competition and innovation and this cannot be accomplished with unscrupulous companies circumventing the rules and taking advantage of workers.
Many reports, including the Letta Report, the ELA report on the construction industry and the Commission’s own recent monitoring report on the revised Posting of Workers Directive, show that subcontracting is a major risk factor for fraud and the exploitation of workers, and that the construction sector is particularly vulnerable to this type of abuse. Companies use long and complex subcontracting chains to disguise employment relationships, circumvent tax and social security payments, avoid joint and several liability, and hide from controls by labour inspection bodies. These subcontractors repeatedly vanish without paying the workers their wage due after months of working.
EFBWW General Secretary Tom Deleu: "We know the problem. We know the source of the problem. We know the answers. Now it is time for action. It is time to put an end to exploitation. It is time to put an end to unfair competition. We expect the Commission to come forward with a legislative proposal to limit subcontracting and ban intermediaries in posting. We need a stronger ELA and we insist that public authorities set the example and ensure that no money goes to the exploitation of workers. The EFBWW is ready to work with the Commission on all these issues. Let’s do it!”.