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Systematic exploitation – tax fraud and wage theft harm us all

At an inquiry at the Ministry of Finance, the trade union vida shows how wage dumping, tax fraud and social security fraud distort entire industries – and calls for consistent countermeasures.

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Gewerkschaft vida

Tax fraud, wage theft and social security fraud are not a marginal phenomenon. They follow a system that works at the expense of employees, correctly managed companies and ultimately society as a whole. It was precisely these structural grievances that the trade union vida made visible at the inquiry "For fair competition - strategies against tax fraud and wage dumping" at the Federal Ministry of Finance .

Portrait Olivia Janisch
"Anyone who lowers wages, evades contributions and evades taxes is acting illegally - and thus harming us all."
Olivia Janisch
stellvertretende Vorsitzende der Gewerkschaft vida

What is needed are comprehensive controls, noticeable penalties and clear liability rules along the entire order chain. Fraud must not pay off.

Road transport: Same work, half pay

A current case from road freight transport shows how systematically wage dumping is practiced: A transport company flagged out to Slovakia uses hundreds of truck drivers in Austria. A Ukrainian driver does not receive the Austrian collective agreement wage, but the significantly lower Slovakian wage.

"This is not fair competition, but systematic underpayment."
Olivia Janisch
stellvertretende Vorsitzende der Gewerkschaft vida

The difference is massive: While an Austrian truck driver earns around 2,600 euros gross , a driver employed in Slovakia only receives about 1,000 euros gross.

Parcel delivery: Responsibility is passed on downwards

The system of exploitation is also clearly evident in parcel delivery. Employees are often employed by subcontractors – often under precarious conditions, with bogus self-employment and missing or manipulated working time recording.

"Anyone who outsources responsibility organizes exploitation."
Olivia Janisch
stellvertretende Vorsitzende der Gewerkschaft vida

The trade union vida is therefore calling for clear liability of the first client for wages, working hours and social security contributions along the entire subcontractor chain.

Tourism: Wage and social fraud as part of everyday life

Unpaid overtime, false information to social security or unpaid contributions - for example in tips - are part of everyday life in accommodation and gastronomy in many places. "The large number of cases shows how widespread wage theft, funding abuse and social security fraud are in tourism," says Janisch.

"This is obviously not about securing skilled workers, but about the cheapest and most dependent labor possible."
Olivia Janisch
stellvertretende Vorsitzende der Gewerkschaft vida

Particularly problematic: Workers from third countries are increasingly being recruited via the Red-White-Red Card and seasonal quotas – although tens of thousands of people in the industry are registered as unemployed by the AMS .

A drastic example: Employees had to work more than 60 hours a week as service staff, and cooks even more than 77 hours a week . In addition, they were deliberately misinformed by their employer – for example, that they were not entitled to vacation or were not allowed to go on sick leave.

vida demands: Control instead of looking away

In order to ensure fair competition and the protection of employees, the trade union vida demands, among other things:

  • more staff at the control authorities
  • the reintroduction of the cumulation principle for penalties
  • significantly higher sanctions for tax evasion and wage theft
  • Tamper-proof working time records
  • an experience rating in unemployment insurance, so that companies that regularly "temporarily" park employees at the AMS share in the costs incurred

"Those who manage correctly and treat employees fairly must not be disadvantaged," Janisch concluded. "Fraud must not be cheaper than righteousness. A strong welfare state needs consistent control and enforcement of the laws."

 

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