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Head of a German company complains about the provisions on posting. Administrative costs increased by 30 percent

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Directive 96/71 / EC concerning the posting of workers is a barrier not only for companies from the new EU countries. German gas installations producer complains about additional costs and administrative barriers resulting from the EU posting regulations.

Denis Radtke, a member of the European Parliament, delegate of the CDU party in the Ruhr Area, visited the LT GASETECHNIK company. During the conversation, the MEP learned that the regulations on posted workers in force in the European Union were very burdensome for the producer. Holger Kunz, the director of the German Machine and Equipment Manufacturers’ Association (VDMA) also participated in the discussion.

LT GASETECHNIK complained about high administrative costs and additional financial burdens resulting from the application of the Directive 96/71/EC. For example, in order to delegate workers to Luxembourg to assemble installations or to provide services, the producer observed a 30 percent increase in costs. And it was not a matter of higher pay for employees, but more bureaucracy.

Radtke, as we read in the LT GASETECHNIK statement, understood the problem of the German machinery industry well and announced that he would submit a motion to the European Commission. This is also a stimulus for VDMA to draw the attention of politicians to the administrative consequences of the directive and the need to adapt its provisions to the market reality so that German companies can comply with them.

Editor’s comment:

An example of a German manufacturer clearly shows that the directive on the posting of workers creates many problems for companies from all over the Union, not only from Central and Eastern Europe. Additional bureaucracy involves additional costs, and these reduce the profitability and competitiveness of the company. Although, in theory, the provisions on posting were to improve the working conditions of employees, in reality, they could lead to their deterioration or even reduction of posts if business activities cease to be profitable for entrepreneurs through administrative barriers.

If the regulations on posting currently hinder the functioning of production companies, what will happen to the transport after the entry into force of the new regulations currently being prepared by the politicians from Brussels? A producer from Germany regrets the additional costs resulting from additional administrative expenses by sending employees to work in the territory of one specific country (to Luxembourg). In this case, how the carrier, whose driver realizes one route crossing the borders of several countries, will find himself in the tangle of regulations of individual countries? How much will his costs increase? It remains to be hoped that Western politicians will reflect before the Mobility Package is coupled with the new posting regulations.

 

Photo: Pixabay/lukasbieri/public domain

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