"NEW SOCIAL DUMPING

Inputs of Jean-Luc MériauxUECBV Secretary General

EP S&D Group - 5th May 2011

Table of Contents

• Short UECBV presentation• EU pork market• Background• The impact of the social issue on

competitiveness in the EU meat sector• Next steps• Objectives / Key recommendations

“NEW SOCIAL DUMPING ALARMING SITUATION IN THE PIG MEAT INDUSTRY” – EP S&D Group, 5 May 2011

European Livestock and Meat Trades Union

• 27 Countries• 46 National Federations

• Livestock traders• Meat industry (slaughterhouses, cutting plants …)• International meat traders

• 4 European Associations • Livestock markets (AEMB)• Casings industry (ENSCA)• Poultry and game (EPEGA)• Ship suppliers (OCEAN)

• Young European Meat Committee (YEMCo)• Some 20,000 Trading and Industrial Companies

“NEW SOCIAL DUMPING ALARMING SITUATION IN THE PIG MEAT INDUSTRY” – EP S&D Group, 5 May 2011

EU-27 pigmeat key figures

“NEW SOCIAL DUMPING ALARMING SITUATION IN THE PIG MEAT INDUSTRY” – EP S&D Group, 5 May 2011

EU pig meat productionTotal EU production (2010): 21.733 million tonnes

“NEW SOCIAL DUMPING ALARMING SITUATION IN THE PIG MEAT INDUSTRY” – EP S&D Group, 5 May 2011

World pig meat production

World Pigmeat Production

2008: 103.190 MioTMexico 1.1%

S-Korea 1.0%

Japan 1.2%

CDN 1.9%Philipp 1.6%

Russia 2.0%

V- Nam 2.5%

Brazil 2.9%

Other

8%

USA 10.1%

EU 27

21.6%

China

45.7%

“NEW SOCIAL DUMPING ALARMING SITUATION IN THE PIG MEAT INDUSTRY” – EP S&D Group, 5 May 2011

Background – EU integration

• Single Market

• Monetary Union

• Common Agricultural Policy

• Common Veterinary Legislation

“NEW SOCIAL DUMPING ALARMING SITUATION IN THE PIG MEAT INDUSTRY” – EP S&D Group, 5 May 2011

Background – EU diversity

• Natural resources• Cost of living• Structures (farms, industry)• Taxes• Wages• National measures related to food safety• Environment• Bio-energy

Background – EU diversity• EU diversity is reflected in the market prices for pork

“NEW SOCIAL DUMPING ALARMING SITUATION IN THE PIG MEAT INDUSTRY” – EP S&D Group, 5 May 2011

110,00

129,67

149,33

169,00

07/02/11 21/02/11 07/03/11 21/03/11 04/04/11 18/04/11

Price development of Pig carcases in some individual MSs (Last 12 weeks)€u

ro/ 1

00kg

First day of the week

BelgiumDenmarkGermanyFranceIrelandItalyAustriaPolandEU

The impact of the social issue on competitiveness in the EU meat sector

• An asymmetric evolution of the pig meat sector among Member States can be noticed, and a deepening of differences in terms of competitiveness

• At the same time, observation of an increase of the posted workers in the most competitive production areas

• Nothing to do with undeclared labor or illegal practices• Motivations:

• search for expertise and know-how;• shortage of labor in the meat industry.• Flexibility (seasons/retail request)

• It happens in a national context. It happens more and more in the EU context, as a result of the Single market.

“NEW SOCIAL DUMPING ALARMING SITUATION IN THE PIG MEAT INDUSTRY” – EP S&D Group, 5 May 2011

The impact of the social issue on competitiveness in the EU meat sector

• Posted workers / other motivation ?• National studies show extreme differences in labor costs.

The total hourly cost for an employer may vary from € 27 in one MS to € 10 in another. Both have more or less the same economic profile.

• Impact• The meat sector, and more specially the pork sector, are a

segment of intensive labor.• Labor is the first expense of a company operating in this

sector, except for the cost of raw material. Labor represents up to 82% of the net added value.

• Therefore the labor cost has a direct impact on competitiveness

“NEW SOCIAL DUMPING ALARMING SITUATION IN THE PIG MEAT INDUSTRY” – EP S&D Group, 5 May 2011

Labor costs: a hypothesis

• Attempted explanation• lack of harmonized policy regarding costs of work - national sovereignty.• EU legal framework - implementation of:

• Posting Directive• Interim workers Directive• Services Directive• Social security costs Regulation

• Many question marks• What is the part of the lack of minimum wages in the competitiveness of the meat

companies?• Are the differences between MS enough to justify the gap of competitiveness? • What is the part for social security costs?• What does the principle of equality of treatment mean? Does it cover wages in the

legislation mentioned?• To what extend the national competent authorities, the companies, the agencies are

responsible?

• Need for a comprehensive EU study (today only national studies: different analysis/methodology/data)

“NEW SOCIAL DUMPING ALARMING SITUATION IN THE PIG MEAT INDUSTRY” – EP S&D Group, 5 May 2011

Next steps

Social partners (EFFAT/UECBV) joint effort• Fact-based analysis of the current situation• Identification of critical issues and shortcomings

in the current system• Analysis of the reasons of the differences (rules,

administrative burden, economy, etc.)• Development of effective tools, strategies and

remedial action to solve the problems• Request for support from the EU Institutions for

the implementation of this joint action plan

“NEW SOCIAL DUMPING ALARMING SITUATION IN THE PIG MEAT INDUSTRY” – EP S&D Group, 5 May 2011

Objectives / Key recommandations

• Need for a decent wage in all EU countries for all meat workers where they work

• Implementation of the host country principle • Implementation of the non-discrimination principle

(equal pay and conditions for equal work)• Stop the fragmentation of employment relation patterns• Stop the discriminatory situations for workers who fall

under the same EU law but in different Member State jurisdictions.

• Good practices guide • Request to the EU institutions to swiftly intervene on

these fundamental matters / Single Market Act

“NEW SOCIAL DUMPING ALARMING SITUATION IN THE PIG MEAT INDUSTRY” – EP S&D Group, 5 May 2011

Thank you very much for your attention

info@uecbv.eu www.uecbv.eu

“NEW SOCIAL DUMPING ALARMING SITUATION IN THE PIG MEAT INDUSTRY” – EP S&D Group, 5 May 2011