“Slovenian Bonus” – No more construction tricks: Success against social dumping

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There has been a bad atmosphere on construction sites in Austria for years. The reason for this is a Slovenian trick in the context of the so-called Posting of Workers Directive, which – quite legally – causes social dumping. Slovenia grants lower social security contributions to construction companies that post workers to other EU countries.

However, the majority of these workers come from third countries. Usually they pretend to be working in Slovenia for just one day, only to be sent straight to an Austrian construction site.

Lower costs for Slovenian companies
The Vienna Chamber of Workers has calculated that a Slovenian company on a large construction site with 50 skilled workers who work for five months pays about 113,000 euros less in social security than an Austrian company.

Worker representatives have been battling this unfair competition since 2019. Now they are announcing a success: the EU competition authority has relented and convinced Slovenia to abolish the bonus early next year.

“Fair competition for domestic companies”
The corresponding resolutions were already adopted in April in the parliament in Ljubljana. “For employees, this means higher pension rights and fair competition for local companies,” emphasizes SPÖ trade unionist Josef Muchitsch.

Source: Krone

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