TRADE unions will take to the streets today in protest against the Bolkestein Directive, which they see as an onslaught on workers’ rights that could wreak havoc on industrial relations on the island.
The directive, drafted in January last year, relates to the deregulation of services in the internal market. It is up for a vote at the European Parliament in Strasbourg this Thursday.
From 11.30am to noon, about a dozen unions representing workers in both the private and public sectors will picket at selected sites in all major cities, demanding the rejection of the controversial directive. The main gathering will take place in Nicosia outside the Finance Ministry.
The action is supported by all the powerful unions, including PASYDY (the main civil servants union), PEO and SEK.
Around 40,000 demonstrated in Berlin on Saturday against the directive, as protesters chanted “Europe yes – social dumping no.” Similar actions will be held across Europe today.
The draft directive applies to all services offered to companies and consumers, ranging from advertising, recruitment, including employment agencies, to trade, cleaning services and construction, but with the exception of certain transport sectors, telecommunications, financial services and services directly offered by the government at no charge.
Unions say the “ultra-liberal” directive is consequently also applicable to public services.
Accordingly, health, education, culture, audiovisual media, the services of the local authorities, etc. will also be regarded as pure merchandise that are fully dependent on the laws of the market, without account being taken of their specific character and their social aims.
The European Commission claims that by encouraging cross-border economic activity and boosting competition, the proposed directive would increase choice, improve quality and bring down prices.
The body has stressed the need to open up the EU services sector, which represents 70 per cent of EU economic activity. The crux is competition from the United States, where the labour market is considerably less regulated than in Europe.
If passed as is, the bill would have a major impact on Cypriot trade unions, which traditionally have had a stranglehold on the labour market, even though last year civil servants grudgingly agreed to temporary wage freezes in the interests of reining in the public deficit.
Militant unions say Bolkestein would allow a company that has its headquarters in one EU member-state to set up shop in another, without being required to follow the laws, agreements or practice existing in the country it is offering its services. But these restrictions on cross-border activity are there for a reason, the union says.
This appears to be the most contentious point of the directive. EU lawmakers appear set to back a watered-down version of the bill after a deal last week between the centre right and socialists.
The compromise centres on removing the country-of-origin principle whereby firms providing services needed only to abide by rules of their home country, not possibly higher consumer, environmental, employment or health and safety laws elsewhere.
“We are extremely concerned with this,” said Nicos Moiseos, general secretary of right-wing-affiliated SEK.
“For example, if a multinational corporation is headquartered in Lithuania, the directive would allow it to charge local [Lithuanian] costs if it opens shop in Cyprus or is awarded a contract for a tender here.”
That would give foreign companies an overly unfair advantage, he added.
AKEL MEP Kyriacos Triantaffylides told the Mail yesterday he would vote against Bolkestein on Thursday. He was also suspicious about the watered-down version:
“It’s just a change in wording – the essence remains the same,” he said.
DIKO MEP Marios Matsakis said he was as yet undecided.
