EU Labour Mobility – A Gift or a Burden?27 October 2015

EESC Building, Brussels

Presentation by Kinga JOO, EESC member

Introduction•TFEU Art 45 Right to Work in an other MS – including the right not to be discriminated against on grounds of nationality.•Specific areas are defined where discrimination is prohibited (2011) eg. working conditions, social and tax benefits, access to training, housing.•Several forms of mobility: permanent stay, cross-border commuting, short-term stay, posting.

Data & Trends

•In 2014, app. 8.1 million EU citizens worked and lived in another MS (3.3% total EU labour force)•Additional 1m cross-border workers and 1.2m short-term services•Most EU mobile workers come from the CEE MSs (58%)•In post-crisis EU movement from Southern MSs increased, while movement from CEE slightly decreased•Top destination countires: DE, UK and AT, BE, Scandinavia•Younger and better educated: 41% between the age of 15-29 and 41% having completed tertiary education

Advantages of intra-EU labour mobility:•It can help to address high levels of unemployment in some MSs and skill and labour shortages in others.•Solution to challenges brought about by demographic change.•New opportunities for individuals: working experience, improving their skills, learning languages.•Benefits to host countries: mobile workers complement the national labour force by filling shortages, more likely to be in employment and less likely to receive benefits.•Benefits to countries of origin: mobile workers provide significant support to domestic demand, investment and entrepreneurship by remittences.

Challenges:

In the countires of origin:•Brain drain, brain waste and skills shortage in specific sectors.•Demographic winter enhanced. •Social and psychological consequences (especially in relation to dependent relatives).•Urgent need for fair mobility patterns, including the concept of „circular migration”.•EU development policies adjusted to mobility schemes, EU funds better used to tackle the challenges.

Challenges:

In the countries of destination:•Lack of information and possible exploitation – in reality not the same conditions await migrant workers (different recruitment conditions, lg barriers, unofficial economy).•Social dumping: major concern for employee’s organizations – Enforcement Directive better applied in the interest of posted workers•Need for fair competition: have equal minimum conditions of employment according to national laws and collective agreements•Effect on social protection systems: initially high employment rate is swifting in some cases to job loss and more reliance on welfare provisions.

Contribution of civil society:“Nam unius linguae uniusque moris regnum inbecille et fragile est.”

St Stephen, First King of Hungary

Admonition VI. “Because a country using only one language and having only one custom is weak and frail.”

Where demand is increasing, civil society organizations are there to give emergency assistance (short term) and provide services (long term). Both short and long term help are important and have to be well coordinated with other actors (state, local government, church, etc).

Instruments that can help MSs

•European Social Fund (ESF) addressing social inclusion challenges of mobile EU citizens: promotion of labour mobility is a priority.•Safeguards provided by EU rules on free movement: to preserve the integrity of their welfare systems.•„Habitual residence test” based on the 2014 guide of the Commission•Better social security coordination among MSs

Conclusions:

•Wage difference: huge differences in wage levels in a free movement zone are and will continue to be an important stimulus to intra-EU mobility.•Remaining obstacles: pension rights, recognition of qualifications and cross-border matching of job seekers and vacancies.•Fair mobility and fair working conditions: civil society should press for fair conditions for both sending and host countries.•EESC „a bridge between Europe and organized civil society”: we are here to listen

• EESC opinions on labour mobility:

• SOC/324 Identification of outstanding barriers to mobility in the internal labour market

• SOC/360 Social Dimension of the Internal Market• SOC/460 Posting of Workers• SOC/495 Measures supporting integration of young EU citizens• SOC/500 EURES• SOC/511 Undeclared work – European Platform

www.eesc.europa.eu

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