EU: Trade unions target subcontracting chains

European trade unions demand limits on subcontracting tiers and joint liability requirements, though EU competence to instruct employers and entrepreneurs how work should be organised is questionable

The key points: The European Trade Union Confederation and the European Federation of Building and Woodworkers are calling for EU action to simplify subcontracting practices by limiting their use and promoting direct employment.

Why this matters: This initiative could significantly impact how businesses organize their work, particularly in the construction industry. However, the EU's legal competence to regulate business organization is questionable. According to the unions:

Opaque, lengthy subcontracting chains are a major source of complexity. The solutions put forward by trade unions, including the limit of subcontracting chains to two tiers, joint and several liability in the whole subcontracting chain, regulating intermediaries, would simplify the situation for workers and businesses alike. The Quality Jobs Roadmap must include legislation to limit and regulate subcontracting and intermediaries.

What might happen next: The EU may consider legislation to limit subcontracting chains and regulate intermediaries, but such action could face legal and political challenges.

What you should be doing: Assess your current subcontracting practices and consider potential impacts of proposed changes. Engage with industry associations to stay informed about developments and contribute to the dialogue on subcontracting regulations.

For more on this story see here and  here.