1

Training of Trainers Social Dialogue Construction Industry

Presentation by Sven LjungByggnads – Swedish Building Workers Union

Florence 9 February 2006

2

Free movement of workers - orientation

• This is an overview The area is difficult. There are lots of details but we will see it in a broader perspective.

• Posting of Workers Directive 96/71/EC

• Posted workers – employed. For instance a Polish company going to Sweden.

• Self-employed• Individuals going to another country to find job.

For instance workers from Hungary going to Ireland.

• Proposed Services Directive

3

Free movement of workers - orientation

• Where to find information• Conclusions/trade union positions

• Discussion

4

Globalisation of the construction industry

• Enlarged European Union• 10 new Member States 1 May 2004• Possible to work in other EU countries

• Movement for companies• Construction sector getting more international• Large companies have operations in many countries• Smaller companies can compete in other countries

• 2 examples:• Skanska, a large Swedish construction company, has a subsidiary

in Poland.• A Polish construction company builds flats in Sweden

5

Globalisation in construction

• Movement of workers• There are no good statistics of posting and migration• Survey in year 2000: 120,000 posted workers, more than 50% were

in construction• Since 1 May 2004, migration should be higher but statistics

uncertain

6

Posting of Workers Directive (96/71/EC)

• The Posting of Workers Directive is about the principle of free movement for people and companies

• The principle of the directive is that working conditions should be as for other workers in host country – not conditions as in country of origin (home country). It is the member state where the work is carried out that is responsible to ensure that.

• A posted worker is a worker who for a limited period carries out his work in another Member State than the State he normally works

7

Posting of Workers Directive, continued

• The Posting of Workers Directive applies for employed people – not for self-employed.

• The definition of a worker is that which applies in the country where the worker is posted. Not exactly the same in all countries. In some countries it is expressed in the law. In other countries it is the interpretation by labour courts that rule.

8

Posting of Workers Directive, continued

• Examples when the Posting of Workers Directive applies:• The worker works for a limited period in another Member

State for a company in his or her own country (or third country)

• A multinational company sends workers to work in another country.

• Cross-border hiring-out contract through a temporary work agency

• The Posting directive does not apply when workers are employed by a company in the host country.

9

Posting of Workers Directive, continued

• Posting of Workers Directive applies in all EU countries, but each country has chosen how to implement it. Each country decides if the rights of workers shall be decided by law, collective agreements or declaring collective agreements generally binding

• One example is minimum wages: • Some countries have minimum wages declared by

government • Some countries declare collective agreements generally

binding• Collective agreements between trade unions and

employers

10

Posting of Workers Directive, continued

• Maximum work periods and minimum rest periods• Minimum paid annual holidays• The minimum rates of pay, including overtime rates• The conditions of hiring-out of workers, in particular the

supply of workers by temporary employment undertakings

• Health, safety and hygiene at work• Protective measures for (employed) pregnant women or

women who recently have given birth. Protective measures for children and young people

• Non-discrimination between men and women

11

Proposed Services Directive

• Ambition to open the internal market more and to stimulate competition and growth (Lisbon process)

• Intensive debate about the country-of-origin principle. Posting of Workers Directive would still apply but there could be grey areas. Risk that position of workers get weaker.

• Proposal that a company would only need a legal representative in the country of origin.

12

Proposed Services Directive

• Trade unions in Europe have expressed concerns about the proposal.

• Some countries have said that they will not accept the Services Directive as proposed.

• Discussions are ongoing, for instance in European Parliament.

13

Where to find information

• http://europa.eu.int/eures European Job Mobility Portal. Information in all languages. Information about labour market, living and working conditions, free movement and many other things. However, the information should just be seen as an introduction. It’s important to take contacts to verify before any action.

• Advantages: Information in own language, but same information to everyone. Much information about detailed conditions. Links to search further.

• Disadvantages: Very little information about trade unions. Abstract information, many workers with short education can have problems to use the service.

14

Where to find information

• http://www.europa.eu.int/comm/employment_social/labour_law/postingofworkers_en.htm

• Information about:• Posting of Workers Directive 96/71/EC• National websites• National liaison offices• Etc

15

Conclusions and Trade Union positions

• The Posting of Workers Directive is, on balance, good and an asset for posted workers and for workers in the host country.

• The problems are very much a result of the implementation – or the lack of implementation – of the directive.

• Research from EFBWW and reports from the European Commission show that most countries have failed to implement the directive properly.

16

Conclusions and Trade Union positions

• The use of so called ”letter box companies” are growing. A company seems to be posted but is not in reality.

• Self-employed are excluded from the directive. That means that many companies require workers to be self-employed instead of employed. This is an example of so called ”bogus self-employed”.

• National Liaison Offices work poorly and there is a lack of resources. Cross-border cooperation (from country to country) is almost non-existent.

• Sub-contracting is often a problem, especially with so called pyramids of sub-contracting.

17

Finally

• Remember the most important principle in the Posting of Workers Directive: The working conditions in the country where the work is carried out apply.

• Thank you for listening

• sven.ljung@byggnads.se