Exploitation warning over EU work rules

New European Union rules allowing firms in one state to operate in another without honouring labour laws will strip workers of their rights and aid exploitation, it was claimed today.

Insisting the practice fell far short of much-needed protection, SIPTU President Jack O’Connor said the move would legitimise the erosion of ethical working practices and wage agreements.

The draft EU Services Directive will give companies the chance to operate across borders without abiding by employment laws in host nations. They will only be obliged to comply with regulations where they are based.

Mr O’Connor claimed it reversed the whole thrust of the EU.

“Instead of helping the new accession states raise the productivity, working conditions and living standards of citizens to the highest possible level, as Ireland was helped in the past, the lowest common denominator will be called into play,” he said.

“Conditions will be driven down to the lowest levels.”

Mr O’Connor said he accepted the rationale behind the idea in an open market. But he questioned whether the system would help generate better trade and more money among member states.

He noted that analysts had told the European Commission that savings of only 1% would be achieved in the majority of traded services while it could have a devastating effect on living standards and working conditions for thousands of EU citizens.

Mr O’Connor noted that an amendment being considered to provide for compliance with labour law in the host country would not protect employment standards here.

Because of Ireland’s voluntary system of collective bargaining, the SIPTU chief said it would only ensure the national minimum wage was paid, which is only half the average industrial salary.

EU President Jose Barosso has said he hoped to have a new draft ready by March. “It is clear that the whole process will be fast-tracked and a new directive could be foisted on us by June,” Mr O’Connor said.

The union leader was speaking at a seminar in Dublin to raise public awareness about the directive.

Mr O’Connor was joined at the seminar by Tom Kitt, Minister of State at the Department of the Taoiseach, Labour MEP Proinsias De Rossa, Phil Hogan Fine Gael TD, Eamonn Ryan Green Party TD, Aengus O’Snodaigh Sinn Féin TD and Independent TD Catherine Murphy.

The SIPTU chief insisted the trade union movement had to make members and the public aware of the issues and ensure that any final EU draft is not designed solely to meet the agenda of those who want a single market stripped of social constraints.

“A more targeted and humane approach is essential if we are to preserve, not just labour standards, but the human integrity of the European project,” he said.

“The most human aspect of the single market is how people are treated at work. That is the benchmark by which the European Social Model must ultimately be judged and this draft directive falls far short of meeting any acceptable criteria.”