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18.04.2012

Social security

EP vote ends social security chicanery by cost-cutting airlines

The European Parliament today adopted a legislative agreement revising EU rules on social security systems to close a number of loopholes under the current legislation (1). Under the terms of the deal, a key loophole will be closed ensuring highly mobile flight personnel, who work across borders by the nature of their work, will no longer be forced to accept minimalist social security provisions. After the vote, Green employment spokesperson Jean Lambert (UK Euro-MP) stated:

"The EP has today voted to end the chicanery by unscrupulous businesses, which enabled them to give their employees the lowest common denominator social security coverage, with a view to cutting their costs.

"The new rules adopted today will close a key loophole, which was exploited by a few cost-cutting airlines to register their staff at their PO Box offices in EU member states with the cheapest social security system, leaving their employees with inferior social security rights in a separate country to that in which they live and have their centre of interests. These rules were put in place to ensure that workers who work cross borders can maintain their social security rights. They were not put in place to provide an opportunity for businesses to cut costs and, in doing so, undermine social security protection. As such, today's vote is an important improvement for EU citizens and mobile workers."

(1) The Cabrnoch legislative report on the coordination of social security systems was adopted with a large majority.

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