Simplification: EU must limit subcontracting and promote direct employment

The ETUC and the EFBWW (European Federation of Building and Woodworkers) have urged the European Union to take decisive action to simplify subcontracting practices by limiting their use and promoting direct employment.

Opaque, lengthy subcontracting chains are a major source of complexity. The solutions put forward by trade unions, including the limit of subcontracting chains to two tiers, joint and several liability in the whole subcontracting chain, regulating intermediaries, would simplify the situation for workers and businesses alike. The Quality Jobs Roadmap must include legislation to limit and regulate subcontracting and intermediaries.

The growing evidence that complex subcontracting chains are a major factor of exploitation, fraud, and other labour abuses shows the need for action. Many workers employed across subcontracting chains or by intermediaries carry out the same tasks in the same workplace as directly employed workers, but work longer hours, receive lower wages, have higher health and safety risks and suffer more insecurity.

Esther Lynch, ETUC General Secretary, said:

“The interminable chains of subcontracting that we see across many sectors are a jungle of burdensome administrative red tape.

“The main winners are the cut throat undercutters, those who are willing to push the worst conditions on working people.

“This forces fair employers into a race to the bottom on conditions and pay and is not the type of behaviour the EU should be encouraging.

“There is absolutely no need for anything beyond two tiers of subcontracting. Beyond that all that is achieved is concealing labour abuses and avoiding tax.

“We need the EU to apply its simplification approach to bring clarity with common sense solutions, including a hard limit on subcontracting chains.”

Tom Deleu, EFBWW General Secretary, said:

“The EFBWW is ready to work with the European Commission to have a fair Labour Mobility Package, one which includes limits on subcontracting, a ban on intermediaries in posting, a stronger European Labour Authority and that ensures that the workers doing the same work have the same rights.

“These demands are essential for an Internal market with fair working conditions and fair competition. That is the only kind of simplification the EU needs.”