The Workers Rights 
On 24 September, hundreds of trade union activists gathered outside European Union institutions in Brussels to protest the proposed EU Inc framework. The march was staged by the European Trade Union Confederation as EU member states kept talking about a new company regime which would make it easier and cheaper to set up and run businesses across borders.
The protest has brought labour rights and social protections to the heart of a continuing European debate about competitiveness. The trade unions believe that the reduction of administrative barriers for businesses should not come at the expense of the level of protection of employees, in particular in the areas of collective bargaining, trade union representation, consultation in the workplace and employee participation in decisions taken within the company.
EU Inc Wants To Ease Cross-Border Business Expansion
The EU Inc proposal, also referred to as the 28th company regime, aims to simplify the establishment and operation of companies within the European single market. The European Commission’s wider competitiveness agenda aims to reduce the administrative burden and make it easier for European businesses, especially innovative businesses, to scale across national borders.
Today companies operating in Europe have to cope with a range of national rules, administrative requirements and corporate procedures. The proposed framework aims to provide a new company regime throughout the EU which could help companies expand across borders and overcome some of the hurdles caused by national differences in regulation in the single market.
Trade Unions Say Collective Labour Rights Being Endangered
The ETUC has expressed concern that the proposed framework does not include sufficiently binding safeguards for collective labour rights. Where countries have wider national labour protections and social standards, companies could choose a corporate regime that gives them more flexibility, the organisation says.
Collective bargaining is a particularly important aspect of the dispute. Trade unions see collective negotiations between employers and workers as an important part of setting fair wages, working conditions and employment standards. The ETUC has called for clear guarantees on collective bargaining, trade union rights, information and consultation rights and employee participation.
Fair Pay Is Still Linked To Labour Protections
Wider concerns around pay standards are in the mix around the EU Inc proposal. While the discussion is not limited to statutory wages, trade unions have linked fair pay to stronger collective bargaining powers and defences against employment practices that could put downward pressure on working conditions.
The ETUC has repeatedly demanded quality job-supporting policies, stronger collective bargaining and better living standards. In September, the organisation said European workers needed concrete measures supporting fair wages, secure employment and protections for fundamental rights.
New Worker Questions For Digital Company Structures
Unions also raise another concern about the proposed digital approach to the company lifecycle. The EU Inc framework is designed to enable companies to perform many corporate procedures digitally, which could accelerate and enhance the efficiency of registration and administration.
Trade unions have expressed concerns that highly digital corporate structures could increase the distance between company governance and the workplaces where employees are actually based. This concern is particularly relevant where companies operate in a number of countries and workers are subject to diverse national employment conditions.
The Eu Social Model Remains At The Centre Of The Debate
The EU Inc row is a symptom of a wider debate about the relationship between economic competitiveness and Europe’s social model. Supporters of the proposal say that easier cross-border rules for companies will help European firms compete globally, while trade unions are demanding stronger guarantees that the new rules will not undermine existing worker protections.
The ETUC has said that any new regime for companies must respect national labour law, collective agreements and the rights of workers to participate. The organisation has also called for binding and enforceable safeguards, rather than general assurances that existing rights will continue to be protected.
European Parliament Committees Review Worker Safeguards
The debate has already moved from the streets to the European legislative process. In September, the Employment and Social Affairs Committee of the European Parliament adopted an opinion challenging several elements of the Commission proposal, the ETUC said. Issues raised included limiting the scope of the legislation, strengthening worker participation and codetermination rights, excluding certain sectors and clarifying stock options in relation to remuneration.
The developments indicate that worker protections are being considered within the legislative process, rather than being solely driven by criticism from outside. Parliament committees, member states, social partners and EU institutions will shape the eventual framework.
International Labour Standards Provide Additional Context
The EU Inc debate is relevant well beyond company registration, as rights for workers form part of a wider international framework of decent work, equality and human rights. Responsible labour governance is recognised as including collective bargaining, freedom of association, consultation and fair employment conditions.
For Europe, the challenge is to reconcile these principles with greater international competitiveness. It is a policy trade-off, not a choice between economic activity and social protection. If productivity, investment and worker rights are considered together, strong businesses and secure jobs can coexist within the same economic framework.
EU Inc Debate Puts Quality Employment At Risk
The Brussels protest has once again put the spotlight on the safeguards which could be attached to the proposed EU Inc regime. Trade unions are calling for stronger legal guarantees in relation to collective bargaining, trade union rights, worker consultation, employee participation and national labour standards. The wider aim of the proposal remains focused on making it easier to do business across the European market.
The final framework will be negotiated between EU institutions and member states, and so it seems probable that more attention will be paid in the future to the ways in which corporate flexibility can be consistent with labour protections. The discussions now underway have become more consequential following EU leaders’ decision in March to target finalising the legislation by the end of 2026.
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