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07.12.2018

Coordination of social security systems: EBC calls upon the European Parliament to support the Rapporteur’s mandate

In view of the ongoing review of the Regulations on coordination of social security systems (883/2004 and 987/2009), the European Builders Confederation calls upon Members of the European Parliament to support the mandate given by the Employment committee (EMPL) to Rapporteur Guillaume Balas (S&D/FR) during the plenary meeting on 11 December 2018.

Construction SMEs and craftsmen are strongly committed to the Internal Market freedoms, but believe they should go hand in hand with appropriate tools to prevent breaches and enforce the law. Therefore it is essential that the posting of workers, which is important and necessary in the European Union, takes place within a legal framework that does not leave leeway for abuse or fraud on the back of enterprises obeying to the rules and the stability of social security systems, or even overall public finances of Member States. This is especially important in the construction sector, which concentrates 42% of the total posted workers in the European Union.

A better coordination of social security systems at the European Union level, by means of enabling national authorities to appropriately verify the social security status of a posted worker, is essential to avoid unjust or abusive practices that may lead to unfair competition as well as the non-payment of due social security contributions and taxes, without replacing or undermining national systems. All Member States are free to decide who is to be insured under their legislation, which benefits are granted and under what conditions. Hence, the coordination of social security systems would only help to clearly determine which system a posted worker is subject to.

Given the current legislative loopholes and shortcomings, EBC is glad to see that the report by Rapporteur Balas puts forward better possibilities of coordination amongst national authorities, in order to ensure the proper application of social security rights.

EBC Secretary General Eugenio Quintieri stated: “We believe that the report is well-balanced and truly has the potential to improve the situation in the construction sector, reducing abuses of the system, unfair competition, especially affecting construction SMEs, and unfair treatment for workers. Therefore, we strongly urge you to support the Rapporteur’s mandate on Coordination of social security systems during the plenary vote on 11 December 2018”.

To read EBC position paper on the coordination of social security systems, click here