EFFAT stood alongside the ETUC outside the EU Councill as ministers discussed the 28th Regime, warning that the draft regulation could weaken labour enforcement, collective rights and protections against abusive subcontracting
Brussels, 24 September 2026. This morning, as European Council ministers met to discuss the proposed 28th Regime, known as “EU Inc”, EFFAT, the European Federation of Food, Agriculture and Tourism Trade Unions joined the European Trade Union Confederation (ETUC) and trade unions from across Europe at a rally outside the Council. Together we called for binding safeguards for workers’ rights in the proposal.
From a start-up tool to an economy-wide regime
Presented at first as a proposal to help start-ups grow across the single market, its scope has since widened to cover any EU-based enterprise.
Alarmingly, many loopholes for “regime-shopping” are apparent. Employers could all of a sudden register a company in a member state with weaker collective rights, thousands of kilometres from where their workers are based, shut themselves down, and then re-emerge before any labour authority can investigate.
“There will be no relaunch of European competitiveness with EU Inc. As there will be no relaunch of European competitiveness with the 12 omnibus packages already launched by the Commission! These proposals will only promote the financialisation of our sectors and increase inequalities”said Enrico Somaglia, EFFAT General Secretary.
Collective rights are not part of the competitiveness problem
EFFAT rejects the argument that EU Inc is key to boost Europe’s competitiveness: Companies with organised workers and worker representation on their boards invest more, are more productive and offer better conditions. Workplace democracy is an essential right and vital to Europe’s social and economic future
A threat to progress on subcontracting and labour intermediaries
EFFAT is leading the fight against wild-west employment practices, including abusive subcontracting, and unregulated labour intermediation.
The proposal comes as governments in countries such as Germany and the Netherlands are finally acting on abuses in the meat sector, and as the EU is about to launch its Quality Jobs Act and address abusive subcontracting and labour intermediaries. An EU Inc regime could let companies that use and abuse workers operate without transparency, accountability or consequences, and create a new class of “EU Inc worker” without the agreements, rights and protections of their colleagues.
“While ministers met inside to decide the shape of EU Inc, the trade union movement stood outside because nobody has asked them what it will cost workers, their families, and their communities. We have sent the message that workers’ rights are not up for sale. EU Inc cannot become a loophole for employers seeking to avoiding responsibility towards their workforce” added William Eddershaw company policy officer at EFFAT
Along with the ETUC, EFFAT calls on the Council and Commission to:
- Guarantee strong labour enforcement authorities, with no room for evasion
- Fully respect collective rights, including information, consultation and board-level representation
- Ensure fair and equal treatment for all workers across subcontracting and labour intermediaries
EFFAT will keep fighting to protect every worker and prevent every loophole of this proposal that threatens their rights
