{"id":13113,"date":"2026-11-02T08:12:30","date_gmt":"2026-11-02T08:12:30","guid":{"rendered":"https:\/\/www.alcircle.com\/blog\/?p=13113"},"modified":"2026-11-02T08:12:34","modified_gmt":"2026-11-02T08:12:34","slug":"europes-quality-jobs-act-must-not-undermine-industrial-competitiveness","status":"publish","type":"post","link":"https:\/\/www.alcircle.com\/blog\/europes-quality-jobs-act-must-not-undermine-industrial-competitiveness","title":{"rendered":"Europe\u2019s Quality Jobs Act must not undermine industrial competitiveness"},"content":{"rendered":"\n

Europe is confronting a difficult economic contradiction. The European Union (EU) wants to strengthen its industrial base, secure supplies of critical raw materials and accelerate the energy transition. Yet it is also preparing new employment legislation that could increase the regulatory burdens facing the very businesses expected to deliver these ambitions.<\/p>\n\n\n\n

The forthcoming Quality Jobs Act is intended to improve working conditions and protect workers as employment changes. These are legitimate objectives. However, if the legislation prioritises additional obligations over productivity, flexibility and technological progress, it risks making European industry less competitive at precisely the moment when it needs to become more efficient.<\/p>\n\n\n\n

The European Commission expects to present its legislative proposal before the end of 2026. This will cover artificial intelligence and algorithmic management, occupational health and safety, subcontracting, the green and digital transitions, and enforcement of workers\u2019 rights. These are themes that I cover in my new book \u201cThe Future of HUMAN Work\u201d and the final balance between protection and flexibility will be critical.<\/p>\n\n\n\n

Industrial sectors cannot afford unnecessary burdens<\/strong><\/h2>\n\n\n\n

Europe\u2019s energy and raw-materials sectors are fundamental to economic security. Mining, metals production, refining, recycling and energy generation underpin manufacturing, infrastructure, defence and the development of low-carbon technologies. These industries already face substantial challenges. Energy-intensive producers contend with high energy costs and international competition, while mining and processing projects must navigate complex permitting procedures, environmental requirements and significant capital expenditure. The EU\u2019s Critical Raw Materials Act seeks to accelerate domestic capacity and diversify supplies, recognising the strategic importance of these activities.<\/p>\n\n\n\n

Against this backdrop, additional employment obligations could create further costs and administrative complexity if they are poorly targeted. Requirements involving workplace monitoring, consultation, documentation or subcontracting may be manageable individually but more burdensome when layered onto existing national and European rules. This matters particularly for smaller suppliers, contractors and innovative businesses that lack extensive compliance departments. If the cumulative burden makes investment less attractive, projects may be delayed, expanded elsewhere or abandoned altogether. The Quality Jobs Act should therefore be assessed not only by its immediate effects on working conditions, but also by its implications for industrial investment, productivity and Europe’s ability to secure essential materials.<\/p>\n\n\n\n

Automation and AI must be enabled, not obstructed<\/strong><\/h2>\n\n\n\n

Technology offers one of the most promising ways to address Europe\u2019s industrial challenges. Automation can improve precision, reduce dangerous manual tasks and enable operations to function more efficiently. Artificial intelligence can help predict equipment failures, optimise energy consumption, improve production planning and identify safety risks before accidents occur. These benefits are particularly relevant to mining, metals, chemicals and energy infrastructure, where equipment failures can be expensive and hazardous. AI-assisted maintenance and automated inspection can improve both productivity and worker safety.<\/p>\n\n\n\n

Yet uncertainty over how new workplace rules interact with existing legislation could discourage businesses from deploying these technologies. The European Commission is considering measures to improve transparency around algorithmic management and protect workers from excessive monitoring. The challenge is to address genuine risks without treating technological adoption as inherently suspect.<\/p>\n\n\n\n

Businesses need clarity about their obligations when introducing AI tools, including when workers must be informed, what human oversight is required and how workplace data can be used. New requirements should complement existing frameworks, including the AI Act and GDPR, rather than create overlapping compliance procedures. Most importantly, legislation must distinguish between intrusive surveillance or unfair automated decisions and technologies that support workers in performing their jobs more safely and effectively. A predictive maintenance system is not equivalent to an algorithm making consequential employment decisions without meaningful human review.<\/p>\n\n\n\n

Subcontracting and the industrial value chain<\/strong><\/h2>\n\n\n\n

Subcontracting is another important issue for the forthcoming legislation. Energy and raw-materials operations rely on networks of specialist engineering firms, maintenance providers, logistics companies and independent contractors. These arrangements allow businesses to access expertise, manage fluctuating workloads and undertake specialised projects without maintaining every capability in-house. They can also create opportunities for smaller businesses and skilled independent professionals.<\/p>\n\n\n\n

Exploitation and deliberate evasion of employment obligations must be addressed. However, rules governing subcontracting chains should be carefully targeted at demonstrable abuses rather than creating disproportionate liability or paperwork for every participant. Excessive restrictions could discourage companies from working with specialist suppliers, reduce opportunities for independent professionals and increase project costs. Complex liability rules could also make businesses more reluctant to engage smaller contractors, consolidating work among larger suppliers rather than improving conditions across the value chain. The objective should be effective enforcement of existing rights, with clear responsibilities and proportionate sanctions, not unnecessary obstacles to legitimate commercial relationships.<\/p>\n\n\n\n

Quality jobs require competitive businesses<\/strong><\/h2>\n\n\n\n

The European Commission argues that good jobs can strengthen productivity by improving motivation, retaining skilled employees and encouraging training. Its October 2026 employment outlook also recognises AI\u2019s potential to improve productivity and job quality, while acknowledging that technology can disrupt some occupations. These are important considerations, but quality employment cannot be separated from the economic conditions that make investment and job creation possible.<\/p>\n\n\n\n

Europe needs industrial businesses that can afford to modernise, train workers and compete internationally. If regulatory costs discourage investment in automation, companies may become less productive, struggle to increase wages or lose market share to overseas competitors. The green transition makes this especially urgent. Producing and recycling the metals required for electrification, renewable energy and advanced manufacturing will demand substantial investment and increasingly sophisticated production processes. Restricting the flexibility needed to deliver these improvements could undermine both industrial competitiveness and environmental objectives. The Quality Jobs Act should therefore support reskilling, safe technology adoption and adaptable working arrangements alongside effective worker protection.<\/p>\n\n\n\n

A competitiveness test for the Quality Jobs Act<\/strong><\/h2>\n\n\n\n

In my view, the forthcoming legislation should follow three principles. First, proportionality: new obligations must reflect demonstrable risks and account for the circumstances of different industries and businesses. Second, technological neutrality: regulation should address harmful outcomes rather than obstructing automation or AI simply because they change established working practices. Third, simplification: policymakers should assess the cumulative impact of new rules and avoid duplicating requirements already covered by EU legislation or national law.<\/p>\n\n\n\n

Europe needs quality jobs, but it also needs competitive industries capable of creating and sustaining them. The Quality Jobs Act must recognise that these objectives are complementary, not competing. If the legislation enables businesses to invest, innovate and improve working conditions, it can contribute to a stronger European economy. If it adds layers of unnecessary bureaucracy to already pressured industrial sectors, it risks achieving the opposite.<\/p>\n","protected":false},"excerpt":{"rendered":"

Europe is confronting a difficult economic contradiction. The European Union (EU) wants to strengthen its industrial base, secure supplies of critical raw materials and accelerate the energy transition. Yet it is also preparing new employment legislation that could increase the regulatory burdens facing the very businesses expected to deliver these ambitions. The forthcoming Quality Jobs […]<\/p>\n","protected":false},"author":109,"featured_media":13114,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[168],"tags":[65,955,957,956],"class_list":{"0":"post-13113","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-primary-aluminium","8":"tag-aluminium-industry","9":"tag-europe","10":"tag-european-union","11":"tag-quality-jobs-act"},"yoast_head":"\nEU Quality Jobs Act: Impact on Industrial Competitiveness<\/title>\n<meta name=\"description\" content=\"EU Quality Jobs Act raises concerns over industrial competitiveness, regulatory burdens, AI adoption and investment across Europe sectors\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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