Trade unions are calling on the European Commission to end its secrecy over its plans for an ‘EU Inc’ policy amid growing fears about its potential impact on working people and their rights.
Commissioners today held an ‘orientation debate’ on the scheme, also known as the 28th company regime, which it is feared will allow companies to opt-out of national law in the countries where they are based and operate instead under lower standards.
The European Trade Union Confederation (ETUC) wrote to all Commissioners ahead of the debate to call for urgent clarification about how the policy would be prevented from undermining collective agreements, labour law and board-level workers representation, as the Commission has still not published any details of how it would work.
Redundancies
Our call comes amid reports that the Commission is considering introducing measures to close companies more quickly. President von der Leyen has also said it would become easier to close a company. Other problematic parts of the proposal include reports that CEOs will be able to replace employment contracts or wages with share option schemes.
Trade unions are also concerned it will weaken collective bargaining and board-level worker representation, make it even more difficult for labour inspectors to enforce the law, and allow companies to avoid social security payments and taxation.
While the scheme has been sold as a way to help start-up companies, business groups are already campaigning for the scheme to be open to all companies.
ETUC General Secretary Esther Lynch said:
“The drip-drip of media reports and speeches is causing growing concern among working people. Everything from the right to an employment contract, a guaranteed wage, and protection against redundancy seems to be on the table.
“The Commission has a responsibility to end the speculation and give concrete answers to the serious questions about labour rights in Europe that this scheme raises. If the Commission has nothing to hide, then they should end the secrecy about what ‘EU Inc’ means for workers.
“I remind Commissioners that they have an obligation under the Treaties to inform and consult social partners – including trade unions – on initiatives which concern social policy.”
"Plans to allow companies to opt-out of national law and operate under lower EU-wide standards could have a profound impact on working people and their rights."
Notes
ETUC Letter in view of the upcoming orientation debate in the College of Commissioners on the proposed “28th company regime” (EU Inc.)
How a 28th company law regime jeopardises workers’ rights: Policy brief by the European Trade Union Institute
