Wage dumping: EU wants to stop exploitation of foreign Billiglöhner

Whether on work sites, in gastronomy or care: Many foreign workers have been paid worse than their domestic colleagues so far. This is now going to change.

Wage dumping: EU wants to stop exploitation of foreign Billiglöhner

Millions of posted workers in Europe should be better protected against social and wage dumping. After months of negotiations, negotiators from European Parliament, EU countries and EU Commission reached an agreement on principles. Social Commissioner Marianne Thyssen spoke of a breakthrough and a balanced compromise according to principle: equal pay for equal work in same place.

Trade Unionists welcomed provisional agreement, which has yet to be detailed and confirmed by EU countries and European Parliament. "Concrete improvements are possible, especially in pay of posted workers," said DGB board member Annelie Buntenbach. The Federal Association of German Employers ' associations sees plans as a brake on growth. "Under guise of combating social dumping, new European directives are always being imposed on all sectors of economy," BDA criticised.

A good two million posted forces work according to official information in anor EU country, more than 400,000 in Germany. Many work on construction, in forwarding, in restaurants or in care. The reform of more than 20-year-old EU posting directive has been in dispute since 2016. Eastern member States with low wage levels are insisting on free movement of ir citizens, while western EU countries deplore wage dumping on ir labour market.

Same extras as for colleagues

According to negotiators, it was now agreed that posting should be limited to twelve months in principle – with possibility of extending it to 18 months. Posted workers are expected to receive same wage rates as ir local counterparts from outset, including extras such as a 13th monthly salary or bad wear surcharges. Travel or accommodation costs may not be deducted from your salary.

"Posted workers often get lower salaries and have less social protection than domestic workers, some live under shocking conditions," said Social Democrat negotiator of European Parliament, Agnes Jongerius. "That must change." The new rules should stop downward spiral in competition for low wages and worst conditions.

Differences remain with social security, as Thyssen confirmed. The posted workers are often insured for inexpensive sickness or pensions in ir home country. For example, wage costs are still lower than those of locals in case of posted workers.

Date Of Update: 02 March 2018, 12:03
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