The European Court of Justice has ruled today that trade unions can in principle take action to prevent employers from using cheaper workers from EU countries with fewer labour rights. The ruling, regarding Finnish ferry company Viking Line, states that such action must be intended purely to protect jobs and existing employment conditions, not to prevent an employer from being based wherever it likes, including member states with weaker protection for workers.
Attempts by Viking Line to take on Estonian workers angered Finnish employees who sought the aid of British-based International Transport Workers’ Federation. The federation called on its members not to negotiate with the company at which point Viking Line lodged a court case.
The European Court of Justice has now ruled that industrial action is legal "only if it pursues a legitimate aim such as the protection of workers" and it has left the decision of legitimacy in this case up to the national courts to decide.
Commenting on the ruling, Jean Lambert MEP, Member of the European Parliament’s Employment and Social Affairs Committee, said:
"The European Court of Justice has ruled that company trading rights cannot simply ride rough-shod over workers rights and this is a principle that I welcome. Companies will now have to think twice before opting for cheaper labour at the expense of existing employees.
"Although the judgement is not as conclusive as we’d like, as it has thrown the decision in this case back to national courts, it still suggests that the rights of establishment and of free movement don’t necessarily take precedent over the rights of workers. However, there is now a question over what constitutes a legitimate aim. Would strike action for the public good, for instance regarding an environmental concern, be a legitimate aim?
"All European countries and companies should be striving to meet the highest possible employment standards. This ruling has confirmed that despite allowing free movement in the European Union, competition between countries should not apply to labour standards."