European trade unions express concern over proposed startup legislation

During a two-day meeting of the European Trade Union Confederation (ETUC) in Brussels on May 19-20, representatives discussed a European Commission proposal intended to support startup companies. Union members expressed significant concern regarding a specific provision that may allow companies operating across borders to apply the labor laws and wage standards of their home member state rather than the state where the work is performed. Critics argue this measure echoes the controversial Bolkestein Directive from two decades ago, potentially undermining collective bargaining agreements and wage standards. Andreas Matsas, Secretary-General of SEK, stated that this proposal could disrupt current labor balances and conflict with EU policies on the expansion of collective agreements. For example, a company registered in Cyprus operating in Spain might apply Cypriot labor conditions to its Spanish employees. Unions are calling for the proposal to be blocked before it proceeds to a vote. They warn that such a policy could trigger a race to the bottom, similar to the historical concerns regarding the migration of low-wage labor within the EU.