Labour MEPs: Commission’s posted workers’ proposals welcome, but more needs to be done to close loopholes

Labour MEPs today welcomed the European Commission’s proposals for pay equality between posted workers and locals, but called for more to be done to close loopholes and create a truly fair system.

The Commission has proposed a revision to the posted workers’ directive, that workers from one EU country posted to work in another must be legally entitled the same pay as local host country workers, rather than only to the host country’s minimum wage.

Currently, companies are not obliged to pay a posted worker more than the minimum rate of pay set by the host country, which can create wage differences between posted and local workers and potentially lead to unfair competition between companies.

Siôn Simon MEP, Labour’s European Parliament spokesperson on employment and social affairs, said:

“The Commission’s proposals are of course welcome, but don’t go far enough, and we will work to strengthen them when the plans come before MEPs.

“Labour MEPs believe posted workers should benefit from the protection of the collective agreements that are actually applied in the host country. The Commission has failed to ensure posted workers will benefit from collective bargaining – this is another failure of the posted workers’ directive.

“If equal pay for equal work is to mean anything, it means people receiving the same rates of pay regardless of where they’re from, and irrespective of whether they’re temporary or not – we cannot allow companies to get away with exploiting workers and undercutting wages.”