Transitional arrangements proposed for workers from central and eastern Europe

In September 2003, the Danish Minister of Employment proposed that, for a transitional period, workers from the new central and eastern European Member States joining the EU from May 2004 should be able to take jobs in Denmark only on the terms and conditions laid down in collective agreements.

In September 2003, the Minister of Employment, Claus Hjort Frederiksen of the Liberal Party (Venstre), presented a new proposal to parliament on the treatment in Denmark of workers from the new EU Member States in central and eastern Europe after 1 May 2004 when these countries join the Union. Under transitional arrangements agreed by the EU and these countries, the existing Member States may limit movements of workers from the new Member States for a period of up to seven years after enlargement.

The Minister proposes that, during the seven-year transitional period, in order to obtain a work and residence permit, workers from the new central and eastern European Member States must be hired in Denmark under the terms and conditions laid down by collective agreements. About 80% of the Danish labour market is covered by collective agreements. If workers from the new Member States take a job in a company not covered by a collective agreement, they must be hired on the terms and conditions laid down in the most relevant collective agreement for the sector concerned, it is proposed. If these conditions are not fulfilled, or the worker loses the job, a residence and work permit will not be granted or will be withdrawn. It will also be a condition that the employer concerned is registered with the Danish tax authorities.

The relevant terms and conditions of employment should, under the proposal, be written into the work and residence permits of workers from the new Member States, and regional labour market councils (De regionale arbejdsmarkedsråd) should ensure that they are observed. These councils include representatives of the social partners, and currently discuss and monitor the regional and local labour market. Under the Minister's proposal, they should now be given rights relating to work permits and be informed by employers when workers from the new Member States are recruited.

The Danish Confederation of Trade Unions (Landsorganisationen i Danmark, LO) has welcomed the Minister's proposal, as it essentially meets the unions' main demand that workers from the new EU Member States in central and eastern Europe should be welcomed in Denmark as soon as these countries join the EU. While the proposed decentralisation of monitoring and control over work permits will involve extra work for the trade unions at regional level, LO will accept this challenge.

It is especially in agriculture and building (DK0307102N) that Danish trade unions expect the arrival of a number of workers from the new Member States - mainly the Baltic countries - after EU enlargement. Few concrete estimates have been made of the number of workers likely to be involved, but an exception is a survey conducted in September 2003 for the Society of Danish Engineers (Ingeniørforeningen i Danmark, IDA), the Danish Metalworkers' Union (Dansk Metal), the Employers’ Association for Information Technology (ITEK) affiliated to the Confederation of Danish Industries (Dansk Industri, DI) and the Greater Copenhagen Public Employment Service (AF-Storkøbenhavn). The report (EU’s udvidelse mod øst – udfordringer for det danske arbejdsmarked), carried out by Ramboll, concludes that of 2,000 engineers and 2,000 metalworkers interviewed in Poland, very few intended moving to Denmark. It is estimated that only 40 Polish engineers a year will come to Denmark in order to find work.