Construction workers exploited due to lax border crossing rules

SIPTU joins forces with EU unions to enforce mandatory prior notification for all posted workers in the construction sector

SIPTU has joined with the European Federation of Building and Woodworkers (EFBWW) and the European Construction Industry Federation (FIEC) to urge EU member states to enforce mandatory prior notification for all posted workers in the construction sector. Photo: iStock

Mandatory prior notification by employers of their workers crossing borders within the EU is crucial to protect workers’ rights and to promote fair competition, construction unions have told the European Commission.

The construction group within the Irish union SIPTU has joined with the European Federation of Building and Woodworkers (EFBWW) and the European Construction Industry Federation (FIEC) to urge EU member states to enforce mandatory prior notification for all posted workers in the construction sector. 

Addressing the recently installed European Commission, the construction sector unions have restated their ongoing concerns about loose enforcement of regulations around cross-border postings for workers within the EU.  

This can typically relate to construction companies gaining exemptions for workers moving from one EU country to another  to temporarily work on a project. 

The unions report that a lack of transparency and accountability in this area is leading to the exploitation of workers, to income tax evasion, as well as impacting negatively on building standards.

Tom Deleu, general secretary of the EFBWW, said: “Exemptions to prior notification will be another open door to unscrupulous companies to abuse vulnerable workers, especially in the construction sector, where the risk of exploitation is highest.

“Once again, supposed simplification and competitiveness are being discussed at the expense of construction workers’ rights.” 

 Domenico Campogrande, FIEC’s director general, added: “FIEC is opposed to any form of temporary exemption to the prior notification of the A1 form for the construction industry. Such exemption would undermine the principle of fair mobility that we promote.” 

The group of unions is highlighting abuses it says are arising from exemptions being widely applied in relation to cross-border postings.

The unions believe that exemptions, even for short postings or business trips, undermine the system's effectiveness and create loopholes that are particularly damaging in the construction sector.

For instance, Irish-based companies posting workers within the EU must complete a PDA1 certification. The employer completes the form and continues paying PRSI contributions in Ireland, and is exempt from paying social security contributions in the country the worker is posted to.

However, SIPTU has visited construction sites in Dublin to conduct its own surveys of workers and found that many workers were broadly unaware of any such forms being completed. SIPTU also found that many workers haven’t completed forms proving they have the qualifications and skills required to complete their jobs.

“We found very poor monitoring of skills and qualifications,” said John Regan, construction sector organiser with SIPTU. “Up to 70% or 80% of the workers on workers on one site in Dublin were completely unaware of any requirement to give proof of their skills and qualifications.

“We passed this information onto the local authorities. These construction workers are just not being told of the need for proof of qualifications. The regulations are just not being monitored, so there is very poor compliance. This is bound to have an impact on building standards.

“In our experience, we have seen that Solas are very strong when it comes to making this initial contact with construction sector workers. Solas makes the required checks for qualifications and compliance.” 

Ireland is not unique when it comes to poor compliance in relation to the completion of forms and regulations on sites, the unions argue. The unions say that the widespread lack of compliance is why they're calling for the retention of mandatory A1 certification, and the empowering of local authorities to monitor compliance with EU and national laws, and to facilitate inspections.

In addressing their specific concerns around posted workers to the European Commission, the unions note that mandatory prior notification ensures transparency and accountability in cross-border postings, helping to prevent abusive practices like ‘fake postings’ and undeclared work.

“Protecting the rights of workers and ensuring they are not exploited is a priority for the unions,” said John Regan. “Compliance with these regulations should really also be a priority for the Exchequer.

“What we are seeing is very poor compliance with the regulations in this area, and we are seeing that there is little or no inspection of the requirements around compliance. We want the government to introduce greater inspections to ensure that the quality of work meets the required standards.” 

Last week, the unions told the European Parliament that the concerns of both European social partners of the construction industry around the enforcement of mandatory prior notification for all posted workers cannot be ignored.

EFBWW, FIEC and SIPTU stressed that the construction industry cannot afford the current exemptions being allowed on this issue. The unique nature of the sector, with its high reliance on posted workers and sometimes complex subcontracting chains, requires robust and enforceable rules, say the unions.

“The revision of Regulation 883/2004 represents a chance to improve access to social security for cross-border and posted workers across the EU and, as the construction industry sees one of the largest proportions of posted workers, it is crucial for both workers and employers in the sector that this revision is concluded,” said Tom Deleu of EFBWW.

“Discussions in the Council of the EU will be critical in shaping the future framework for social security coordination. As the discussions seem to enter a new phase, EFBWW and FIEC want to remind all stakeholders that the revision of the coordination of social security regulations was initially proposed by the ‘Juncker Commission’, already in 2016, with a very clear objective to tackle social dumping and to promote fair competition in a fair Internal Market.

“Finalising these negotiations with strong and enforceable provisions is essential for delivering on the promises made when this revision was first proposed.”