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EUROPEAN CAMPAIGN ON LETTERBOX COMPANIES
Today, all of Europe’s construction unions are launching a European campaign on letterbox companies. The campaign is being organised simultaneously by 76 unions in 34 countries.
Fake letterbox companies have no real economic activities and are only used to dodge collective agreements. Based on our experience, these companies increasingly serve as a means of committing social dumping and fraud, primarily large-scale social fraud.
Under existing European legislation, anyone can easily set up a company in another country. No checks are carried out to determine whether the company has genuine economic activities. More and more often, unscrupulous people and organisations are setting up fake companies in countries where social security contributions are low and where there are no checks on companies’ economic activities or social security payments. These countries include Ireland, the UK, Cyprus, Estonia, Bulgaria and Slovenia, to name but a few.
Since the issue of letterbox companies was basically caused by a poor EU policy, the problem needs to be solved at EU level. The EFBWW recommends fundamentally reviewing the current EU Services Directive and the Social Security Regulation. Furthermore, we are calling for a European registration system for all companies, and for European social security numbers for all workers. These last two suggestions would make it easier to monitor foreign companies and workers.
There need to be stricter checks at national level to determine whether companies are fake or genuine.
Our European campaign also directly opposes the European legislative proposal that would require countries to allow companies to be set up with a capital of €1, which could even be founded abroad by unknown people. If this proposal is adopted, it will be even easier to commit social dumping and fraud in future. Consequently, the proposal must be stopped!

For more information, please see the website www.stopletterboxcompanies.eu, where you can find more information about the campaign and sign our European petition.
 
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