Unions urge compromise in services directive

Sinn Fein members protesting outside the European Union offices in Dublin today. Photo: Niall Carson/PA

Sinn Fein members protesting outside the European Union offices in Dublin today. Photo: Niall Carson/PA

Opponents of the EU Service Directive being debated in Strasbourg this week gathered outside Leinster House today in support of a series of compromises.

The Impact trade union today urged Irish MEPs to back a watered-down version of the directive agreed between the two main parliamentary groups - the European Peoples' Party and the Party of European Socialists - last week.

The directive, which has been bitterly opposed by European trade unions, proposes to extend the single market for goods that already exists in the EU to the services sector.

Around 30,000 trade unionists marched in Strasbourg today to increase pressure on MEPs to excise the most controversial aspects of the proposal, particularly, the "country of origin" principle.

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The provision would allow companies to set up in a low-wage EU state observing local employment, consumer and environmental laws while trading in other states with better social protections.

Opponents of the proposition say many firms in wealthier EU states would be unable to compete and would relocate to low-cost bases.

"This would put decent employers and governments under immense commercial pressure to abandon national workplace rights and environmental protection in a continent-wide race to the bottom.

"And it would undermine national consumer protection and make it harder for consumers to get redress if they're ripped off by service suppliers," Impact spokesman Bernard Harbor said.

The union held a photocall on Kildare Street today attended by Labour Party leader Pat Rabbitte in which they equated the directive to the infamous 1929 Valentine's Day massacre in Chicago.

The directive has been raised by the Irish Congress of Trade Unions at preparatory talks on a new social partnership deal, and Impact today urged the Government to support the changes agreed by MEPs last week.

A further concern for unions is the effect the directive in its current form could have public services.

"The laws covering haircuts and interior design should not be the same as rules governing cancer treatment, education or residential childcare," said Mr Harbor.

Irish trade union leaders joined colleagues from around the EU in Strasbourg today. One of them

was Teachers Union of Ireland president Paddy Healy, who expressed concern that some sections of third-level and adult education may be regarded as being within the scope of the directive.

Siptu general president Jack O'Connor was also at the rally in Strasbourg. He said: "If the directive is voted through the European Parliament in its original form it will be little more than a blank cheque for exploiting workers and ripping off the consumer."

But the European Commission says the bill is crucial to boosting competition and could generate 600,000 new jobs and add 1 to 3 per cent to economic output.

When MEPs vote on Thursday, the directive will fall under the ambit of Internal Market Commissioner Charlie McCreevy.