The growing phenomenon of labourers coming into Europe from south-east Asia and elsewhere is fuelling a dangerous rise in exploitative labour practices that requires urgent EU action, labour unions and civil society groups have warned.
Trade unions fear that a “political” opinion from the European Court of Justice could lead to the overhaul the rules on the posting of workers employed with companies that hire out temporary staff and the single market.
At the heart of the case is TeamPower Europe, a Bulgaria–based company that hires out and places temporary workers. Most workers are sent to undertakings that hire abroad.
The main question facing the court is whether “substantial activity” must take place in the country from which the workers are being posted.
The firm applied for certificates of social security coverage in Bulgaria for workers sent to Germany, which were rejected by local authorities on the grounds that the company does not perform substantial activity in Bulgaria. This would then lead to the application of German social security, which is more costly than the Bulgarian equivalent.
The EU needs to tackle social dumping and fraud in the construction sector that has been led by an emerging business model of exploitative labour, argues Tom Deleu in an interview with EURACTIV.
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