How to make formal work attractive - the employer´s view

Rolf Gleissner /UEAPME

Undeclared labour – a key topic in Austria

• big wage differences between Austria and neighbour countries

• big tax wegde on labour• still relatively low share of undeclared labour –

8% of GDP• low unemployment rate 4,9%• massive posting of workers from abroad• strong pressure by foreign companies which

do not comply with Austrian labour standards• bogus firms in the construction sector

tax wedge on labour

Instruments against undeclared labour and wage dumping in Austria

• Collective agreements incl. minimum wages for all employed persons, effective also for posted workers

• strict controls by social insurance carriers, financial police and fund of construction workers;

• high fines for employers who pay below minimum wage acc. to coll. agreement

• problem: enforcement abroad

feeling of discrimination against national employers

• liability of contractors for subc. in the constr. sector

Employer´s position on (in)formal work

• balance of interests between freedom and fair competition

• no limitation of freedom of movement• make formal work attractive and easy:

reduction of tax wedge on labour and of administrative barriers

• strict enforcement of national standards vis à vis all employers, workers and contractors – also private contractors!

Employer´s position on (in)formal work

• we need transnational cooperation and enforcement

• support a European platform with obligatory participation

• enforcement = task of authorities• no/restricted liability for behaviour of

subcontractors danger of hampering (international)

cooperation