What worker guarantees do unions and lawmakers demand to unblock EU Inc?
Trade unions say the Commission’s pledge that labour law is “unaffected” does not close loopholes in the flagship 28th regime. Lawmakers cannot agree on how to fix them.
EU lawmakers and unions are in disagreement over worker protections for a proposed single digital company structure called EU Inc. The organization's location in one country versus employing people in another raises questions about which country's labor laws apply. While employment rights generally remain intact, unions argue that company-specific rights, particularly board-level representation, are the main issue.
Employers could theoretically choose the participation regime based solely on where they incorporate the company, despite having no physical presence there. The European Trade Union Confederation (ETUC) wants binding articles instead of non-enforceable guidelines to ensure worker safeguards. Their demands include workplace rules, higher protection thresholds, aggregating workforce across branches and subsidiaries, and adding an anti-circumvention clause.
Critics argue the current measures are insufficient, voluntary, and may allow rogue structures. Another contentious point is stock options, which unions say must not replace wages or social security contributions, a stance startups disagree with. Negotiations are ongoing, with lawmakers and unions still struggling to find a middle ground.
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