The European Commission's proposal for a new European corporate status would allow companies to register once and operate throughout the European Union without establishing local subsidiaries. While presented as a measure to reduce administrative burdens and support innovation, the proposal still contains serious loopholes that could enable companies to circumvent national labour laws and weaken workers' protections.

“We are pulling the brake on the European Commission’s new 'EU Inc.' proposal. MEPs have working hard to patch the text but it still contains dangerous loopholes. This is why we have to ensure that haste does not come at the expense of workers” said Isabelle Barthès, industriAll Europe’s Deputy General Secretary.

Together with the European Trade Union Confederation (ETUC), industriAll Europe welcomes the significant improvements made by European Parliament rapporteurs to the Commission's original proposal. However, important gaps remain.
A safety net with holes is no safety net at all.

IndustriAll Europe and the ETUC therefore continue to insist that the following red lines must be fully respected before any agreement can be supported:

• EU Inc. employers must be subject to the same rules and obligations as local employers, without exceptions.
• There must be no rollback of workers' rights, including codetermination, collective bargaining and collective agreements.
• Stock options must never replace fair wages or secure employment contracts.
• The proposal must prevent the creation of letterbox companies and regulatory shopping.
• Strong enforcement mechanisms and effective labour inspections must be guaranteed to prevent abuse.

We call on the European institutions to extend the legislative timetable to allow the remaining loopholes to be properly addressed, rather than forcing through a flawed text to meet an artificial deadline.

IndustriAll Europe joins the ETUC in thanking European Parliament Rapporteur René Repasi, EMPL Rapporteur Johan Danielsson and the Members of the European Parliament who have worked to strengthen the proposal and introduce missing safeguards for workers.
While their efforts have substantially improved the Commission's draft, further changes are still needed to ensure that workers' rights are fully protected.

IndustriAll Europe, together with our affiliates will continue to push forward and engage with policymakers throughout the legislative process.

“Let’s be clear, we will not support the proposed EU Inc. framework until every loophole that risks undermining workers' rights has been closed!!” Affirmed Isabelle Barthès