Dynamics of CEE Workers and Their Impact on the EU Labor Market

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