Unions protest EU Inc law, claiming it threatens labour rights

On Thursday, trade union activists from various backgrounds gathered outside EU institutions in Brussels to voice their opposition to EU Inc, a proposed law aimed at simplifying and reducing the costs of establishing and managing businesses across Europe. The European Trade Union Confederation (ETUC) spearheaded the demonstration, warning that the legislation jeopardizes worker rights by enabling corporations to bypass national labor laws and social standards.

The ETUC highlighted the legislation's lack of safeguards for collective labor rights, collective bargaining, trade union rights, information and consultation rights, and workers' participation rights.

Moreover, the ETUC expressed deep concerns over the legislation's potential impact on board-level employee representation and corporate restructuring strategies, which could undermine collective rights and disconnect corporate governance from the workplace. The ETUC also raised alerts about the proposal for a fully digital company lifecycle, which could further isolate corporate governance from employee locations.

The EU Inc initiative seeks to enhance Europe's global competitiveness by simplifying company establishment and expansion across borders. Compared to the US, the EU's fragmented single market often presents businesses with different national rules and additional administrative burdens. Brussels contends that these obstacles impede European companies' ability to scale up.

In September, European business leaders urged the European Commission to refrain from weakening the legislation, particularly its proposed 'free choice of registered office,' which would allow founders to register their companies without being bound to operate in the same country. In March, EU leaders agreed to finalize the law by the year's end.