WRITTEN QUESTION E-0052/98 by Hartmut Nassauer (PPE) to the Commission (29 January 1998)

Subject: Arrangements affecting building contractors posting workers to another country in the framework of the provision of services

Directive 96/71/EC ((OJ L 18, 21.1.1997, p. 1. )) of the European Parliament and of the Council of 16 December 1996 concerning the posting of workers in the framework of the provision of services, further clarified by Declaration No 7 of the Council and Commission (minutes of the Council meeting of 24 September 1996, CODEC 550), concerns contributions to national social insurance schemes and the benefits paid by such schemes which do not form part of the general social security system.

The precise scope of these arrangements and the procedures for their application in the building industry give rise to various questions.

Of particular interest are the principle of and procedures for payments of contributions to a social insurance fund in the host country which are governed by a collective agreement or legislation, whether or not a corresponding system exists in the country of origin.

Against this background and

- as the two sides of industry in the construction sector, the European Construction Industry Federation (FIEC) and the European Federation of Building and Woodworkers (EFBWW), have recently signed a joint opinion on this subject, which opens the way for the conclusion of bilateral agreements at national level aimed at both ensuring respect for workers' rights and preventing the double payment of contributions to the employers' disadvantage;

- as the two sides of industry in the Belgian and Dutch construction sector have concluded a bilateral agreement on all their sectoral social systems;

- as the French and German sectoral funds have concluded an agreement on paid leave in the two countries,

what is the Commission's view of the joint opinion and the agreements referred to above, and what are its intentions with regard to overcoming the problems that continue to arise in this sector?

Answer given by Mr Flynn on behalf of the Commission (13 March 1998)

The Commission is concerned by the fact that firms providing transnational services in the territory of a host Member State are required to meet identical obligations under both the law of the Member State in which they are established and the law of the host Member State. Such situations occur mainly in the construction sector, where some Member States have social insurance schemes that are responsible for paying benefits to workers, e.g. for paid leave, and are financed by employers' contributions. Such situations, which cause double payments to be levied on employers, run counter to the freedom to provide services and are inconsistent with the provisions of Directive 96/71/EC, the deadline for transposition of which expires on 16 December 1999. In laying down precise rules to be complied with by service providers in host Member States, Directive 96/71/EC specifically aims at avoiding double payment situations.

All solutions likely to remedy such situations must be considered. The Commission has called on the Member States' representatives in the group it has set up to monitor transposition of the Directive to cooperate actively in seeking solutions.

The Commission welcomes the joint opinion recently adopted by the social partners in the construction sector at European level and the bilateral collective agreements concluded at national level with a view to ensuring respect for workers' rights and preventing the double payment of employers' contributions.

The Commission is very much in favour of agreement-based solutions which are properly geared to the often complex situation in the sector concerned.