Brussels, 28th November 2017 – The European Builders Confederation (EBC) welcomes MEP Guillaume Balas’ (S&D/France) proposals on the coordination of social security systems, submitted today to the European Parliament Committee on Employment and Social Affairs. According to EBC, the report takes a step forward in improving the coordination of social security rules and in fighting social dumping.
The current European framework for the coordination of social security systems offers leeway for unfair competition for construction SMEs and unfair treatment for workers who are deprived of the possibility to effectively exercise their social and labour rights. This is especially true in the construction sector, considering that several abuses of social security contribution systems come from posting activities. Moreover, the non-payment of due social security contributions and taxes as a result of social dumping represents a threat to the financial sustainability of social security systems and the public finances of the Member States. This is due to lack of coordination within and between Member States, the lack of transparency and understanding of the existing rules, and their uneven and inadequate application.For these reasons, EBC supports the revision of the Regulations on coordination of social security systems (883/2004 and 987/2009) to give national authorities the appropriate means to check the social security status of the posted employees and to remedy any unfair or abusive practices.
As regards Balas’ report, EBC supports the following developments:
In its upcoming position paper, EBC will put forward concrete proposals to improve the coordination of social security systems across Europe.
Commission’s proposal on Coordination of social security systems
Parliament’s draft report on Coordination of social security systems