EU labour law case to stir passions between 'old' and 'new' states
10.01.07 @ 09:24
The EU's top court is gearing up for a ruling on a dispute between a Latvian construction company and Sweden's trade unions which will have profound implications for the extent to which member states can protect themselves from cheaper workers from other EU countries.
The European Court of Justice held a hearing on Tuesday (9 January) on the row between Latvian company Laval and a Swedish trade union, with the firm accusing the Swedes of causing its bankruptcy through their union protests.
The incident dates back to 2004 when the trade unionists urged Laval - building a school in the Swedish city of Vaxholm - to pay higher Swedish wages to its workers.
As the firm refused to do so - arguing that the minimum wage was not imposed across Sweden while their workers were not members of that particular trade union - the unionists pursued a blockade of the construction site and forced the company to leave.
On Tuesday's hearing, some "old" member states - such as Denmark - came to back Sweden in its argumentation while Latvia was supported by Estonian and Lithuanian experts, according to press reports.
Laval's representatives argued that the row was based on protectionist grounds as the Latvian workers took jobs away from their Swedish counterparts, stressing that some protesters in Vaxholm literally shouted "Latvians, go home!"
The Swedish trade union on the other hand maintained that Laval breached Swedish laws as the labour conditions are determined through collective agreements in the country so the firm should have signed up to them.
The ruling in the landmark case is to be announced later this year.
