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The Nordic states say the collective system is the basis for their highly successful social model (Photo: EUobserver)

Swedish trade unions lose EU labour case

by Honor Mahony, Brussels,

The EU's highest court has delivered a blow to the Swedish system of collective bargaining – seen as underpinning the country's highly successful social model - by ruling that Swedish unions cannot force a foreign company to observe local pay deals.

In a keenly awaited judgement, the court said that a trade union blockade which forced a Latvian company using cheaper Latvian labourers into bankruptcy was illegal.

"Such action in the form of a blockade of sites constitutes a restric...

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The Nordic states say the collective system is the basis for their highly successful social model (Photo: EUobserver)

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