The European Trade Union Confederation (ETUC) argues that the policy, which enables firms to register in member states with the weakest protections, will trigger a continent-wide race to the bottom. Under the current proposal, companies could move their legal headquarters to jurisdictions with lower minimum wages and minimal collective bargaining, all while continuing to operate in their original markets. Esther Lynch, general secretary of the ETUC, cautioned that this shift marks a potential tipping point for labor stability across the bloc.
Unions mobilize against EU Inc corporate registration overhaul
Thousands of workers are set to descend on the European Council this Thursday as trade unions mount a final stand against the proposed 'EU Inc' policy. Critics warn the regulation, designed to streamline business registration, creates a dangerous loophole allowing companies to bypass national labor laws and wage standards.
Legal analysis from the European Trade Union Institute (ETUI) suggests the policy grants firms an unprecedented ability to evade worker consultation requirements. The research highlights risks such as the replacement of wages with stock options and fast-tracked liquidation processes that leave employees without recourse for unpaid earnings. With registration achievable through a standardized online form in just 48 hours, union leaders fear that the drive for foreign investment is coming at the direct expense of the social security and employment rights that define the European labor model.
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