EESC CORNER: Does Union need a new EU "Authority"?

EESC CORNER: Does Union need a new EU “Authority”?

The tensions around the revision of the posting of workers directive, which divided Member States and social partners across Europe, inspired president Juncker´s idea to establish the European Labour Market Authority (ELA).

Intra-EU labour mobility involves some 12 million citizens who are working, seeking a job or are being posted in another Member State. An extensive body of EU legislation establishes workers´ rights in cross-border situations and coordinates social security regimes. EU law also sets out specific provisions to support the implementation of rules and facilitate the exchange of information between Member States – Enforcement directive on the posting of workers (2014/67/EU). National authorities are in charge of rule enforcement in line with Treaty competences.

Nevertheless the Commission considers that there is a need for a European structure to support systematic cooperation on cross-border activities involving labour and social security matters between Member States. On 13 March 2018, under the European fairness package, the EC published its proposal for a regulation on the establishing of the European labour authority with the aim to ensuring fairness in the single market. The proposal aims to improve access to information by individuals and employers regarding their rights and obligations in the area of labour mobility and social security coordination. It is also intended to strengthen operational cooperation between authorities in cross-border enforcement of relevant Union law, including facilitating joint inspections and providing mediation and facilitating solutions in case of disputes between national authorities and cross-border labour market disruptions, such as restructuring of companies affecting several Member States.

On the request of the Commission, the EESC Section for employment and social affairs (SOC) has started its work on the gathering of opinions about the potential role of the European Labour Authority. It seems there is no common voice. The employee’s representatives welcome this initiative as one of the tools delivered under the European Pillar of Social Right. The employers support the initiative focusing on the better functioning of the single market, including the free movement of workers, and the effort to combat fraud in cross-border situations. Nevertheless they are full of scepticism about the added value of a new EU supervisory body acting in an area where the Member States and social partners have responsibility for industrial relations. They doubt if it is an efficient and cost effective way of achieving the objective and are asking for an alternative which would streamline the relevant existing bodies.

The proposed Authority is set to have a significant budget of 50.9 million euros per year once fully operational, planned to be by 2023. These financial resources could be used more effectively for providing information and assistance to European companies and workers about the rules applied in cross-border situations. The main concern of the Employers is the role of the ELA in dispute resolutions, which they say must be removed from the scope of the proposed Authority. Also the mediation function should respect the national authorities´ competences and shouldn’t lead to any power to resolve such disputes. It is also essential that the labour inspections remain the competence of national authorities. The Employers also don´t support the proposed Authority´s role in suggesting a concern or instigating a joint inspection of its own initiative to the authorities of the Member States. If the ELA is established it should not overreach into the areas that are within the competence of either Member States, their national authorities or social partners and companies, such as working conditions, health and safety, restructuring and third country nationals that are not mobile.