WRITTEN QUESTION E-1966/01

by Herbert Bösch (PSE) to the Commission

(5 July 2001)

Subject: European Commission representation in Vienna

By letter of 3 December 1999, the Austrian Private Employees' Trade Union informed the Commission that large numbers of employees of the Commission's representation in Austria had for many years been employed on a flat-rate fee basis thereby circumventing social-security and employment-law provisions. The employees concerned had suffered personal disadvantages (withholding of leave and Christmas-break payments, gaps in social insurance contributions, etc.)

Can the Commission state how many employees have been so affected since 1995 or continue so to be, indicating the periods during which each of them was so employed?

Can the Commission state when it was informed by the Vienna representation about these employment conditions and what steps were taken to terminate this irregular situation?

Can the Commission further state what steps it has taken or intends to take to compensate those affected for the financial disadvantages suffered?

The Commission was moreover informed by the above trade union organisation that those concerned had stated that they had been required to sign fee invoices relating to duties they had never performed, apparently for the purpose of concealing the employment of unregistered employees and to enable the payments to be entered under apparently innocuous budget headings. It was said to have been current practice in the event of visits from Brussels for unregistered employees to be told to vacate the premises temporarily. That too was said to have been for the purpose of concealing the existence of the prevailing conditions of employment.

Can the Commission state what steps it has taken to investigate these charges? Can the Commission state in particular when the OLAF Fraud Unit was informed of those charges?

Will the Commission now be prepared to provide Parliament's Committee on Budgetary Control with a copy of the audit report drawn up by its own financial control unit subsequent to an inspection visit from 7 to 11 June 1999?

Answer given by Mr Prodi on behalf of the Commission

(15 October 2001)

With regard to the allegations made in a letter, dated 3 December 1999, sent to the President by the Austrian trade union Gewerkschaft der Privatangestellten (GPA), the Commission would refer the Honourable Member to the answer already given to this letter on 10 May 2000, in which it recalled that it knew of only one labour dispute between a third party and the Austrian Representation in the past.

The Commission would also recall that it communicated to Parliament the results of the submarine inquiry carried out in all its departments in 1998/1999 and that it took all the necessary measures to put an end to the practice of engaging outside staff on terms incompatible with the rules in force. The appropriate instructions were also sent to the Austrian Representation.

On the matter of financial compensation, the Commission can only confirm that it will comply with all relevant decisions given by the courts with regard to actions brought by third parties who feel that they suffered damage in their labour relations with the Austrian Representation.

With regard to the suspected financial irregularities designed to conceal the employment of outside staff on terms incompatible with the rules in force, the Commission can only say that the GPA provided no evidence in support of its allegations. Any material in the possession of the Honourable Member should be sent to the European Anti-fraud Office (OLAF), which has stated that it received certain information on 18 June 2000, obtained further information from Financial Control on 30 July 2001 and it had launched an inquiry on 7 August 2001.

The Commission also confirms that it is ready to apply Parliament's Committee on Budgetary Control with the 1999 audit report on the Vienna Office, prepared by its Financial Control in strict compliance with Annex III to the framework agreement, should it receive a formal request for the document.