EPSU joins call to reject the "SUP"

(12 October 2015) General Secretary Jan Willem Goudriaan committed EPSU’s support to the opposition against the proposed SUP Directive. This directive was discussed at the recent European Works Council Coordinators Network meeting in Brussels.
The SUP – otherwise known as the Directive on single-member private limited liability companies – was announced by the Commission in 2014 under the pretense of facilitating easier cross boarder trade for SMEs; something of a false logic when one considers that SME’s normally conduct their activities at the local level. The level of cross border activity is very low.

The Directive proposes uniform rules for setting up a company which include a 3-day online registration, minimum share capital of 1 euro, and template of articles of association. In her presentation, Séverine Picard – legal advisor for the ETUC – warned how this would lead to a proliferation of “letter-box companies” whereby legal provisions imposed in one Member State can be easily circumvented by simply registering in another one. Consequently, the Directive would serve as “an open invitation” to companies of all sizes to minimize their responsibilities under national law and further incentivize the race to the bottom. This generates serious concerns with regard to workers’ information and consultation rights, sustainable corporate governance, and fiscal evasion.
EPSU’s No Tax Fraud Campaign has revealed how companies seek out the lowest tax rates. Therefore EPSU calls on the Commission to withdraw the current proposal.

Other presentations from speakers included topics ranging from dealing with company restructuring (with the chair of the EWC of Engie) to negotiating transnational company agreements presented by Marco Cilento of ETUC.

Delegates were also given an update on the Syndex project as well as PSI priorities regarding Multinational companies and other global developments by new PSI staff Daria Cibrario.

The next EPSU EWC coordinators network meetings are due to take place 10 February and 4 October 2016, both in Brussels