The European Transport Workers’ Federation (ETF) and the European Road Haulers Association (UETR) have jointly called for more stringent European Union regulations concerning subcontracting practices within the road transport sector. Their proposals include establishing limits on the number of links in subcontracting chains, enhancing transparency throughout these chains, introducing chain liability, and strengthening enforcement mechanisms.
This initiative aims to address concerns about unfair competition and the exploitation of drivers that can arise from complex and opaque subcontracting arrangements. The organizations believe that current regulations are insufficient to prevent abuses, leading to precarious working conditions and downward pressure on wages.
For freight forwarders and operations managers, these potential regulatory changes could significantly impact operational flexibility and cost structures. Limiting subcontracting tiers might reduce the number of available carriers for certain routes or specialized services, potentially leading to capacity constraints or higher rates. Increased transparency and chain liability would necessitate more rigorous vetting of subcontractors and could introduce new administrative burdens and compliance risks. Forwarders would need to ensure their entire supply chain adheres to these new rules, potentially requiring adjustments to existing procurement and contracting processes.
The proposals are currently under discussion at the European Parliament, indicating a legislative push to reform the sector.
