Social Affairs Commission (SOC)

Brief description and main aims: 

The construction industry is reporting labour shortages in most of the EU Member States. Labour shortages in construction are now nearly three times the level observed 10 years ago. Added to this labour shortage is skills shortage and skills gaps.

On 20th March 2024, the European Commission presented a communication on “Labour and Skills shortages in the EU: an Action Plan”. It focuses on five key policy areas for action at EU, national, regional and social partner level: supporting the activation of underrepresented people in the labour market; providing support for skills, training and education; improving working conditions; improving fair intra-EU mobility for workers and learners; attracting talent from outside the EU.

Alongside this Action Plan, the European Commission published, in October 2024, a legislative proposal for the EU Talent Pool to attract workers from third countries. The proposal targets priority jobs, many of which are in the construction sector.

Why FIEC is dealing with this topic:

The problems of lack of labour and skills shortages in construction are crucial for FIEC. They create difficulties for companies that are seeking to recruit workers and it is the long-term competitiveness of the industry which is at stake.

With the Pact for Skills, FIEC is addressing the need for upskilling and reskilling workers.
The issue of labour and skills shortages are also discussed in the framework of the Social Dialogue with EFBWW (European Federation of Building and Woodworkers) and is addressed in EU projects.

Many of the solutions discussed at EU level are of highest interest for construction companies: recognition of qualification, improving and updating VET (Vocational Education and Training), working conditions, apprenticeships, facilitate intra-EU mobility, entry of third-country nationals on the labour market.

Brief description and main aims: 

The “Posting” Directive defines the rules that apply when a company provides services, for a limited period, in a country other than the one where it usually operates. As the provision of services is temporary, some of the rules that apply are the ones of the “host” country (minimum wage, working time, health and safety…), whilst others (for example “Social Security”) remain the ones of the “home” country.

The latest revision to date, Directive (EU) 2018/957 of 28 June 2018 amended the original Directive from 1996 on the “posting of workers in the framework of the provision of services”, with the aim to address the problem of unfair practices and to promote the principle that the same work at the same place should be remunerated in the same manner. Member States must apply the new rules since 30 July 2020.

At present, the European Commission is following the implementation of both this new Posting Directive, as well as the “Enforcement Directive” (2014/67/EU) by the Member States.

Adopted in 2014, this later Directive aims at strengthening the practical application of the Posting Directive by addressing the inspections and monitoring or the exchange of information between Member States, for instance. To date, infringements have been identified by the European Commission in most Member States, because of non-compliance of their national legislation with this Directive, in particular regarding administrative requirements and control measures (article 9), subcontracting liability (article 12) and penalties (article 20).

In parallel, the European Commission is also working on a single e-declaration form that Member States could use on a voluntary basis, in order to harmonise the declaration procedures.

It has also published a broad study on cross-border workers in subcontracting chains, in order to assess the overall functioning of the posting legislation.

Why FIEC is dealing with this topic:

Approximately half of the postings within the Internal Market are in construction activities and therefore these new rules can have a significant impact for construction companies.

FIEC is following the implementation phase and the related activities and keeps a close look at the newly introduced provisions such as, for example: the reference to “remuneration” instead of “minimum wage”; a limitation in time (max 12 months, plus 6 possible additional months) beyond which the terms and conditions of employment that are mandatorily applicable to workers will be the ones of the Member State where the work is carried out; a clarification of the rules applicable to the reimbursement by the employer of the expenditures incurred on account of the posting, such as on travel, board and lodging.

FIEC is also advocating that sectoral initiatives aiming at facilitating the enforcement of the existing legislation, like national social ID cards, should not be put at risk by the ongoing infringement procedures.

Brief description and main aims: 

On 1st July 2020, the European Commission presented an update EU Skills Agenda, building on the 2016 Agenda – which, in the meantime, has been implemented.

This agenda sets new ambitious quantitative objectives for upskilling (improving existing skills) and reskilling (training in new skills) people over the next 5 years.

First action amongst the 12 is the set-up of sectoral “Pact for Skills”, including in construction.

It is aimed at bringing together stakeholders, including social partners, which share the objective of up- and reskilling the workforce to enable the green and digital transition.

These stakeholders are requested to sign a Charter, which defines the key principles that are essential to fulfil this objective, within their organisations but also across their value chain.

Why FIEC is dealing with this topic:

The problems of lack of skilled workforce, skills gaps and skills mismatches in the construction sector are significantly affecting construction companies.
This is even more the case now as the availability of skilled construction workers will be key to the success of the European Green Deal’s Renovation Wave, as well as to the overall digital transition of the construction industry.

FIEC is already involved in these topics in many ways, and namely through our social dialogue with EFBWW (European Federation of Building and Woodworkers).
Moreover, FIEC has been partner in the “Construction Blueprint for a Sectorial Skills Strategy” (Erasmus+ EU-funded project) which lasted until March 2023 and defined the new skills needs in the fields of energy efficiency, circular economy and digitalisation.

Together with the EFBWW, and in cooperation with EBC (European Builders Confederation), FIEC worked on a Pact for Skills in construction, based on our joint experience in this field. We also targeted a few quantitative and qualitative objectives to which we can commit in this framework.
In February 2022, at the occasion of the Industry Days 2022, the Pact for Skills in Construction was officially launched. FIEC, EFBWW and EBC are now monitoring the implementation of this initiative (i.e. collecting the commitments of stakeholders who wants to join) in view of reporting on the outcomes to the European Commission.

Brief description and main aims: 

In December 2016, the European Commission presented a proposal for a revision of the existing Regulations on Social Security coordination (883/2004 and 987/2009).

Achieving a modernised system of social security coordination that responds to the social and economic reality in the Member States is one of the central drivers for this initiative.
This initiative is complementary to the revision of the “Posting” Directive which led to the adoption of the new “Posting Directive” (2018/957 of 28 June 2018).

As the revision of the Social Security Regulations is hardly making any progress, the European Commission and the European Parliament both launched alternative initiatives.
The European Commission is running a pilot-project on a European Social Security Pass (ESSPASS), led by Italy and involving around 10 Member States. The European Parliament has adopted a Resolution on the introduction of a European Social Security Pass.

In its Communication on digitalisation in social security coordination, the European Commission calls the Member States to accelerate the implementation of these different initiatives.

Why FIEC is dealing with this topic:

Mobility within the Internal Market is an issue of crucial importance for construction companies.

The proposal of the Commission focuses on different areas of coordination where improvements are required (economically inactive citizens' access to social benefits, long-term care benefits, unemployment benefits and family benefits), but FIEC mainly addressed those provisions that have a link with the issue of posting such as the need: to strengthen the cooperation and the exchange of information between national administrations; to reinforce the reliability of the A1 forms; to strengthen the provisions regarding the pursuit of activities in two or more Member States; to align some of the proposed changes with those concerning “Posting”, because companies, workers, labour inspectorates and public authorities need a clear and coherent legal framework, in order to be able to comply with it and to enforce it.