Speech by Executive Vice-President Mînzatu at the European Parliament Plenary on INI Report on Addressing subcontracting chains and the role of intermediaries in order to protect workers rights

President, Honourable Members,
Let me express my gratitude to the Rapporteur, dear Johan, and Shadows to this report. This report is very timely for the Commission.
On 4 December 2025, I presented the Quality Jobs Roadmap and the same day we launched the first phase consultation for the Quality Jobs Act. At the same time we launched the preparatory work on the Fair Labour Mobility Package.
In all these documents, subcontracting is presented as a key priority.
Subcontracting it as a legitimate business model. It is vital for SMEs. Through subcontracting, companies have access to specialised expertise and can quickly adapt to meet changing business needs and stay competitive.
At the same time, as stressed by Letta in his report, subcontracting can also lead to abusive practices and poor compliance with employment rules, such as failing to pay wages or social security contributions or to ensure safety at work. This, in turn, can create unfair competition and lower job quality, in particular in certain ‘high risk sectors such as construction, logistics or food industry.
Therefore, we are exploring how the EU should act to tackle such practices that lead to exploitation and abuse of workers.
This does not mean hindering our businesses freedom to conduct businesses. It means ensuring fair competition and protection of workers rights.
Let me draw your attention in particular to the existing legislation in EU labour mobility and notably posting.
The posting rules already include a mandatory direct subcontracting liability in the construction sector. Evidence shows us that a majority of Member States put in place a direct liability, some extended it to the full subcontracting chain and extended it beyond construction in all sectors for posted workers.
The Commission is currently working with the European Labour Authority to facilitate stronger implementation and enforcement of the applicable posting rules.
The question now is what more can be done. In the first phase consultation on the Quality Jobs Act we indicated that – especially in sectors where data show risks of fraudulent practices – further action could consist of:
assessing how liability schemes can be applied at national level (direct liability, joint and several liability etc.);
strengthening enforcement efforts (including via ELA);
enhancing transparency in national systems via – for instance – pre-qualification/certification systems or national registers without imposing additional burden;
exploring how social dialogue could contribute to the respect of the existing rights.
Your report today provides the Commission with further orientation for our work.
Let me mention again labour mobility. As said at the beginning, there is a specific cross-border dimension of the challenges linked to subcontracting which is linked to less transparency and more difficult enforcement, in particular when it comes to labour intermediation and presence of third country nationals.
The Fair Labour Mobility Package intends to look into such challenges.
Finally, as your Report reiterates, a number of demands regarding subcontracting can be addressed in public procurement. Thus, let me also recall the upcoming revision of the Public Procurement directives. The impact assessment that we are working on will carefully analyse these issues.
I am looking forward to hearing your views and exchange with you.