The directive aims to provide better protection for platform workers, who are often vulnerable to exploitation and unfair working conditions. The European Parliament wants platform companies such as taxi firm Uber to be subject to regulations because they do not pay social security contributions for their staff, arguing that these workers are not considered employees. Platforms hire their workers as freelancers, which means they have no entitlement to social benefits like pension accrual and vacation days.
EU member states’ negotiators and the European Parliament recently—after years of negotiations—reached an agreement on clearer rules. But when it comes to final votes, there is no qualified majority among the 27 EU countries. Greece, Estonia, and Germany say they will abstain on March 11, and France will even vote against it.
The German abstention is the result of the ‘working agreement’ within the coalition of SPD, Greens, and FDP, whereby if they disagree on an issue, they will abstain at the EU level. In this specific case, the German liberals do not want the free market bound by new rules, and they do not want to slow down this new type of internet-based company.
This is roughly also the approach of liberal French President Emmanuel Macron, who describes employed personnel as outdated and welcomes the emergence of more freelance work, more self-employed persons, and more part-time jobs as the new economic future.
According to data from the European Commission, there are approximately 500 digital work platforms across the European Union generating a total turnover of 20 billion euros and providing work to more than 28 million people. More than half of them earn less than the legally prescribed minimum hourly wage.
According to the European Parliament, liberal leaders in France, Estonia, and Germany and the conservative Greek Prime Minister are blocking a historic opportunity to protect all employees and the European economy in the digital age.
Dutch Member of the European Parliament Agnes Jongerius (S&D/PvdA) made an urgent appeal to the four countries not to let the matter stall, as has now also happened with the new European directive on joint liability and due diligence. Jongerius said that she has already spoken with German Chancellor Olaf Scholz and the FDP leadership about this.
"The current deadlock is a major threat to the European social model. Some liberal and conservative forces are putting our social Europe in danger and missing an opportunity for Europe to become a pioneer in global labor law," said Jongerius.