Labour Research August 2005

European news

MEPs back unions on services directive

The employment committee of the European Parliament last month approved a number of amendments to the services directive that would, in the view of the unions, protect workers' interests across Europe.

Unions fear that the services directive will undermine employment standards. They are particularly worried about the impact of the "country-of-origin" principle. This would allow companies in one country to provide services across Europe but based on the labour standards of the country of origin.

The amendments passed by the committee, with the support of some conservative MEPs, would prevent the application of this principle unless minimum levels of harmonisation have been achieved. They also exclude a number of sectors such as education and health which were previously included.

The directive now goes to another committee and then to the full Parliament before coming back to the Council of Ministers, which brings together representatives of national governments.