1. cross-border labour costs
Marek BENIO, PhD
Cracow University of Economics
Gdańsk,
This study was funded by the the National Science Centre NCN: "The use of interactive methods of governance in shaping social policy" No. UMO-2011/03 / B / HS5 / 00899

2. Inspiration for the survey
In our Union, the same work at the same place should be remunerated in the same manner
Jean Claude Junker
COM proposal minimum rates of pay -> remuneration
Equal pay? Equal terms of pay?

3. GOALS AND EFFECTS We need more posting, not less Fairer rules
A level playing field
The proposal will create a legal framework for posting that is clear, fair and easy to enforce (…) These changes will provide better protection for workers, more transparency and legal certainty and ensure a level playing field between domestic and posting firms while in full respect of Member States' wage-bargaining systems
Marianne Thyssen

4. THE SURVEY 16
PD A1  

5. THE SURVEY + ‚ - real costs high quality sample
reliable service providers
long activity
domestic and foreign controlls
posting based on PD-A1
high service standards
few companies self selectection PD-A1 16 questionaires

8. REMUNERATION
€ 5,98
€ 9,97
net

9. LABOUR COSTS STRUCTURE
Crossborder Fixed Crossborder Variable ____________________________________________ Tax & Constributions Net wage

10. tax & contributions Social security contributions
Personal income tax advance
Health insurance contribution
Labour Fund contribution
Guranteed Employees’ Allowances Fund contribution
National Disabled Rehabilitation Fund dues
Health tests, Safety trainings,
Company Social Allowances Fund dues

11. CROSS-BORDER COSTS OF LABOUR
Variable 27%
Fixed 2%
Accommodation
Travel
Board
Compensation for fixed term contract
Holiday compensation
Translation
Notification costs
Mandatory
Contact person to represent with local inspection
Complemenary fixed costs:
Apply for PD-A1
Insurance of foreign claims
Cross-border debt collection
Legal advice, opinions, analyses
Translation other than the employee documentation
Foreign exchange differences, conversion
Logistics on site

13. 29 %

15. Cost comparison

16. (…) the cost of hiring a worker on a smic (minimum rate of pay) – posted to France by an enterprise localised in Portugal, Romania, Poland or Spain is equivalent to the cost of hiring a worker of a French established enterprise.
„Au total, en termes de coût du travail, pour un employ rémunéré au Smic, recourir dans un cadre légal à un travailleur détaché en France par une entreprise localisée au Portugal, en Roumanie, en Pologne ou en Espagne est equivalent à faire appel à la main d'oeuvre d'une entreprise localisée en France, pour une prise en charge des dépenses encourues au titre du détachement qui s'élèverait seulement à 100 € par mois (hypothèse qui paraît faible)”

17. CONCLUSIONS
Posted workers earn more than we think, more than minimum rates of pay NET = 10 EURO/hour There are costs of labour which are related solely to the fact that the service is delivered in another Member State Crossborder = 29% total

18. COMPETITIVE ADVANTAGE MYSTERY
„same same but different” the same total cost different cost structure
rates of pay margin social security/taxes work efficiency

19. Xenophob aka Economic Patriot
COMPETITIVE ADVANTAGE MYSTERY
Xenophob aka Economic Patriot
VS.
Greedy Capitalist Scrooge
aka Homo Oeconomicus
When do you choose a foreign company?
Price
Quality
(time + flexibility)
No local provider

20. GOALS AND EFFECTS We need more posting, not less Fairer rules
A level playing field
The proposal will create a legal framework for posting that is clear, fair and easy to enforce (…) These changes will provide better protection for workers, more transparency and legal certainty and ensure a level playing field between domestic and posting firms while in full respect of Member States' wage-bargaining systems
Marianne Thyssen