Focus on data mining in an European-wide enforcement organisation

1. Road inspection and social dumping
J-M CRANDAL
High level expert
General Directorate Transport Infrastructure and
Sea FRANCE

2. Road inspection and social dumping
How intelligent inspections can play
an essential role for preventing and
countering social dumping in road
haulage market ?

3. The scattered factors of production of road freight transport
• to address the issues of
UNFAIR COMPETITION and SOCIAL DUMPING
road side inspectors have to work out the pieces of the
jigsaw
of the factors of production in road transport : labour &
capital –
scattered in many countries
each one falling in the jurisdiction of several national
inspection bodies

4. The scattered factors of production of road freight transport
• 3 examples
– 1st international carriage
– 2nd
cabotage
– 3rd letter-box subsidiaries

5. The scattered factors : 1st example
Haulier’s
subsidiary
Registration
of the vehicle
Consignor’s
place
Place of delivery
Haulier’s
parent company
Driver’s
Work contract
Road
side check
contract of carriage

6. The scattered factors of production : 1st example
case of an international carriage
• to the Red country where the road side checks
take place
• and where the parent company has its
registered head of offices
• involving 2 countries : the Yellow and the Red

7. The scattered factors of production : 1st example
Clues of fraud :
• the subsidiary is a letter-box in the Yellow
country
• the driver seldom or never drives to the
place of this subsidiary
• his real boss is the parent company

8. The scattered factors of production : 1st example
• What are the legal issues ?
• Who is competent to address them ?

9. The scattered factors of production : 1st example
Presumption of
• fake establishment for the subsidiary ( Reg
1071/2009 a 5 c )
• undeclared work for the driver if he is working
normaly in the country of the parent company ( ECJ C
29:10 15 03 2011 -KOELZSCH )

10. The scattered factors of production : 1st example
The information provided by road side checks
should be shared and analysed by all the
competent bodies ( road side inspection–
labor inspection - social security – public
revenue- justice…) of the country who lead
investigation together up to the parent
company

11. The scattered factors of production : 1st example
In this case
efficient inspection relies mainly on the
cooperation of different national bodies ( the
Red one ) but could be more efficient with the
cooperation of the authorities of the Yellow
country ….

12. The scattered factors of production 2nd example
Haulier’s
subsidiary
Registration
of the vehicle
Place
of consignor
Place of
delivery
Haulier’s
parent company
Driver’s work
contract
Road side
check
contract of carriage

13. The scattered factors of production : 2nd example
• Case of a irregular cabotage
carried out by a letter box company ( Yellow )
which is a subsidiary of a parent company
located in a another EC Member country ( Purple)
3 countries are involved : Yellow, Red, Purple

14. The scattered factors of production : 2nd example
• The road side checks show that the driver is
working normally in the parent company and
not in the subsidiary
• and is paid 1000 €/ month instead of 2500
€/m.
• with a work contract of the Yellow country

15. The scattered factors of production : 2nd example
• Which labour law should be applied to drivers ?
– the law of the work contract of the country where
is based the parent company ?
– law of the country in which the driver is posted ?
– both ?

16. The scattered factors of production : 2nd example
• Issues :
– in the country of the road side check : how to
implement the posting of workers directive ?
– what could be done in cooperation with the
authorities of the country where or from where
the driver is working normally ?

17. The issue of letter box companies
• The letter-box companies : a
challenge for the enforcement
bodies of all the countries

18. The issue of letter box companies
• A survey on the letter-box companies in one EC Member
State showed that 110 hauliers of the country share 15
addresses most of them in the capital city…
• none of those places are suitable for an establishment
according to article 5 c of the Reg. 1071/2009,
• all those 110 companies are subsidiaries of parent companies
established in 7 other EC Member States…

19. The issue of letter box companies
• Parent companies in the country where the survey was led
are under investigation, prosecuted or sentenced,
• But what could be done for those based in other MS ?
• Could ECR cope with such issues ?

20. Road inspection and social dumping
Thank you for your attention