Social dumping – a barrier to a single market

The European Parliament is preparing its own-initiative report on social dumping in the EU. The Employment Committee is playing the leading role and TRAN and FEMM are preparing their opinions.

Czech business community is very much concerned about the report and majority of its proposals which can create on behalf of “social dumping” new dividing lines between the old Member States and those who joined the EU after 2004. This fact is worrying and can negatively influence the common project of Single Market and on contrary, it could slow down the process of convergence. The report supports the introduction of the equal pay principle across the EU. The economic situation of each member state in the EU is different and it is not possible to ensure the same salary to the same job across the European Union. This reflects the fact that the competence in setting up minimum rates of pay and social protection still lies in hands of Member States. In our opinion, it should remain a national competence. We understand the worry of some countries when it comes to posted workers and their pay. However, the Posting of workers directive from 1996 and its enforcement directive from 2014 to be transposed before the summer shall set up clear rules in this respect.

For this reason, it is necessary to leave some time to the transposition and assessment of its implementation before taking any new action. The principle of equal pay for equal work is already applied at the company level, but equal pay for equal work on equal place does not simply fit the real situation. From the business perspective, this principle is simply not manageable affecting sound competition.