COLLECTIVE BARGAINING: COMMISSION TREADS CAREFULLY IN VAXHOLM CASE.

The case dates back to 2004. Swedish trade unions instigated proceedings against a Latvian construction company, Laval, to contest the working conditions of the Latvian workers employed to refurbish a school in Vaxholm. When Laval refused to sign a collective bargaining agreement, the trade unions set up a barricade blocking access to the site, but at the same time sought action before the Swedish Work Tribunal, which in turn referred the case to the European Court of Justice.

The European Commissioner for Institutional Relations and Communication Policy, Margot Wallstrom, indicated on February 1, that the question was whether the trade union had acted "excessively" in relation to measures specified in the Directive on posted workers. In October 2005, Charlie McCreevy, Internal Market and Services Commissioner, had stated that the Swedish collective bargaining system was in contradiction of the EU's provisions for the free movement of workers. But the President of the Commission, Jose Manuel Barroso, later said that his comments had been misinterpreted.

ETUC's position.

"The outcome of the Laval (Vaxholm) case (a) is of fundamental importance to the European trade union movement and the welfare of working people across the EU. If the Latvian construction company Laval wins, it will fatally undermine the right of the social partners to conclude autonomous collective agreements and maintain working standards". The warning was...