The European Trade Union Confederation (ETUC) is backing the Swedish trade union confederation LO and the Swedish Building Workers’ Union (SBWU) in fighting to uphold agreed pay rates and conditions in their own country.

Erland Olauson, Vice-President of LO Sweden says; “We cannot accept any form of discrimination between workers on our Swedish labour market. It is unreasonable to accept a system where different wages apply to the same job because of the nationality of the worker.”

The true story of the Laval case

The ancient saying, attributed to Saint Ambrose, counsels: “When in Rome, do as the Romans.” But ignoring this wise advice, Latvian construction company Laval sought to impose its own pay and working conditions on its ’posted’ workers refurbishing a school in Vaxholm near Stockholm, thereby undercutting established Swedish standards.

EU Commissioner Charlie McCreevy angered both trade unions and the Swedish government when he went to Stockholm in October and gave his approval to Latvian conditions in Swedish workplaces.

It is a basic principle of the EU that each Member State has the right to regulate its own labour markets and industrial relations systems, according to its different economic, social and political circumstances.

The Nordic labour market model is acknowledged globally to be highly successful. The ETUC believes that any restriction on the right to collective industrial action, or interference with industrial relations systems, will be interpreted as an attack not only on this model but on fundamental labour rights in general and on the European social model. This is not the way to win back the trust of European citizens and revive the Constitution. The Commission should therefore show great care and take a balanced approach in its representations to the European Court of Justice in the Laval case.

“Europe is not just a single market, it is also a community that shares strong social values,” said ETUC General Secretary John Monks. “This case is of great political importance, because if Europe’s unions lose, there is a real risk of working people turning against free movement, the single market, and the EU itself.”

This case is also closely linked to issues surrounding the contested Services Directive. It demonstrates why regulation in the host country is so crucial to preventing social dumping and promoting upwards harmonisation of living and working standards.

It is important to note that Sweden was one of only three EU countries that did not impose transitional restrictions on the free movement of workers following enlargement on 1 May 2004. It believed its national industrial relations model would be strong enough to cope with the challenges.

More information:

Patricia Grillo ETUC Head of Press and Communications Tel: + 32 (0)2 224 04 30. GSM: + 32 (0)477 77 01 64

Johan Hall LO Sweden Press Officer GSM + 46 (0)70 649 26 06