Madam, - Bernard Harbor, information officer with Impact, writes that under the EU's proposed services directive a business could set up in Latvia and employ staff in Ireland on the basis of Latvian laws (Business Opinion, May 27th).
This misrepresents how the "country of origin" principle will work under the services directive. Under current European law the employment law of the host country applies to the core employment terms and conditions of employees posted from other EU member-states. This provision, the Posting of Workers Directive, ensures that key national employment provisions such as the national minimum wage, occupational health and safety regulations, maximum hours of work and minimum number of paid leave days, are fully respected.
The rules in Ireland on the posting of workers are very strict and, if anything, provide additional safeguards beyond those set out in European law. Therefore, if a Latvian company employs people to work in Ireland, regardless of whether they are Irish or come from elsewhere in the EU or indeed outside it, they must pay these employees at least the Irish minimum wage and respect a wide range of Irish occupational health and safety regulations and other employment provisions. The proposed services directive will not compromise these existing protections.
The current proposal will make it easier for service providers to establish operations in other member-states. The directive will abolish much of the protectionist red tape deterring trade and will ensure that national regulatory regimes will not be allowed to shut other EU business out of the market. Crucially, it will also ensure that customers have access to proper redress if things go wrong.
Undoubtedly, the proposed services directive would benefit from some re-drafting, but one should not lose sight of the fact that more competition in services will benefit both consumers and businesses.
Of course legitimate concerns must be properly addressed, but vested interests must not be allowed to prevent freer trade and fairer competition in services in Europe. - Yours, etc,
PAT IVORY,
Head of Trade Affairs,
Ibec,
Dublin 2.