Dynamics of CEE Workers and Their Impact on the EU Labor Market
Presented by: Mrs. Konjević
Date: 15 – 16 February 2024
The Principle of Free Movement of Workers
EU LEGAL FRAMEWORK:
- EU primary legislation (TEU and TFEU):
• TFEU - Article 45:
Prohibition of discrimination based on nationality in the scope of
employment, remuneration and other employment conditions.
Rights of the EU citizens: to accept employment offers in the other MS,
to move within that MS, to stay there because of the employment and to
remain there after the termination of the employment relationship.
Limitations: public policy, security or health
- EU secondary legislation:
• Directive 2004/38/EC on the right of citizens of the Union and their family
members to move and reside freely within the territory of the Member States;
• Regulation (EU) No 492/2011 on freedom of movement for workers within the
Union;
• Regulation (EU) 2019/1149 of the European Parliament and of the Council of
20 June 2019 establishing a European Labor Authority
Who is a Worker? 'Lawrie-Blum Formula'
- Subordination
• Working "for and under the direction of another person"
- Remuneration
• "neither the sui generis nature of the employment relationship under national
law nor the level of productivity of the person concerned, the origin of the funds
from which the remuneration is paid or the limited amount of the remuneration
can have any consequence regarding whether or not the person is a worker for
Community law"
- Effective and genuine activities
• "(...) independently of the limited amount of the remuneration and the short
duration of the professional activity, it cannot be ruled out that that professional
activity, following an overall assessment of the employment relationship, may
be considered by the national authorities as real and genuine, thereby allowing
its holder to be granted the status of 'worker
Changing Policies on the Free Movement of Workers in Pre-CEE Enlargement
- 'Returning to Europe' a remarkable contrast to the intrastate and interstate mobility
restrictions experienced under the communist regime
- The 'original Member States' feared a massive migration during accessions of CEE
countries, resulting in: TRANSITIONAL ARRANGEMENTS.
- TRANSITIONAL ARRANGEMENTS
• 1 May 2004
'EU-8': Czech Republic, Cyprus, Estonia, Hungary, Latvia, Lithuania,
Malta, Poland, Slovakia and Slovenia
• 1 Jan. 2007
Croatia
• 1 July 2013
'EU-2': Bulgaria and Romania
Transitional Arrangements Formula: 2+3+2 = 7
- 2 years
• MS were applying the national rules or the rules from the bilateral agreements,
which meant that workers from the new Member States still needed a work
permit for the 'old States' labor market
• Workers from the new MS still needed a work permit for the 'old MS' labor
market.
- 3 years
• Only if necessary and justified.
- 2 years
• Only if there are 'serious disturbances' or a 'threat of serious disturbances' to that
Member States' labor market.
The Impact Of Transitional Arrangements
- Greece, Spain and Portugal?
- Contradictory responses from the 'old MS'
- Posted Workers and Self-employment as a tactic?
Discrimination Based On Nationality?
- Malta and Cyprus: Dual-tire EU citizenship?
- New 'Cultural' Racism: Stereotype of the 'Polish plumber'
- Implications for future enlargements?
An Empirical Study on the Western EU Employers' Perceptions CEE Citizens as 'Good
Workers' or Just a Cheap Labor Force?
- Methods:
• The anonymous online poll was distributed among Croatian workers residing
and working in Germany.
• 184 participants: 69,9% women and 30,4% men
• The survey was distributed through two main channels between December 2022
and April 2023:
Croatian Catholic communities in Germany and
social media (Facebook) groups of Croatian immigrants in Germany
• Participants had 13 answer choices and could select multiple options based on
their perceptions.
- Hypothesis:
• German employers may be more inclined to hire Croatian workers due to their
willingness to undertake undesirable jobs requiring additional tasks at
comparatively lower wages than domestic workers.
Conclusion
- The results indicate potential concerns about the precarious position and the potential
exploitation of Croatian workers as a representative group of CEE workers.
- The aim of the research:
• To encourage discussions on labor mobility in general, employment patterns,
and areas for improvement in cross-border employment
