EUCDW resists weakening of labour standards in SUP

The proposal for a single member private limited liability company, or Societas Unius Personae (SUP), has already generated a lot of discussion. Last June, the Commission’s proposal to harmonize rules on establishment of single member companies was broadly rejected in the Employment and Social Affairs Committee of the European Parliament, on concerns that it would entail major risks for workers’ rights.

On 28 January 2016, the Legal Affairs Committee also debated the proposal, and decided to postpone any further decision indefinitely. We agree that the Council and Parliament took a significant step in the right direction by agreeing that companies would need to register in the Member State where they actually carry out most of their activities, but important concerns remain on the necessary safeguards and controls.

Whereas we are convinced that strengthening the Internal Market is of central importance to boost entrepreneurship and investment through small- and medium-sized enterprises (SME’s), which are the backbone of job-creation, this cannot open the door to letterbox companies and unfair competition. Therefore, we cannot accept the proposal in its current form. For EUCDW, competition and social justice must go hand in hand: that is the foundation of the social market economy for which we have always advocated.