Coordination of social security systems: Construction SMEs and Craftsmen welcome MEP Balas’ report

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:

  • strengthened  administrative rules regarding the exchange of information and the verification of the social security status of posted workers;
  • several amendments related to the fight against fraud and error;
  • clearer procedures for issuing and withdrawing PD A1 forms, including accelerated withdrawal procedures in case of serious signs of error or fraud;
  • reinforced cooperation between European institutions, national administrations and labour inspectorates;
  • further involvement of social partners representatives in the Administrative Commission for the Coordination of Social Security System;
  • extension of the prohibition on replacement of posted self-employed people.

In its upcoming position paper, EBC will put forward concrete proposals to improve the coordination of social security systems across Europe.

Further information:
Commission’s proposal on Coordination of social security systems

Parliament’s draft report on Coordination of social security systems