A welcome judgement and a victory for Laval

The Court of Justice of the European Communities today made a decision on the Vaxholm case between the Latvian company, Laval un Partneri, and the Swedish Building Workers’ Union.

“The judgement is clear, and it safeguards free movement as one of the four basic pillars of the Union,” says Mr. Urban BäckströmThe Court of Justice of the European Communities today made a decision on the Vaxholm case between the Latvian company, Laval un Partneri, and the Swedish Building Workers’ Union., Director General of the Confederation of Swedish Enterprise.

• The judgement means increased legal security for foreign companies that wish to come here and carry out work. The judgement is therefore an important, welcome contribution to increased mobility over borders for companies.
• Obtaining clarification of the legal situation has always been the motive for the involvement of the Confederation of Swedish Enterprise in the case. We have now been given a clear, guiding judgement, which in itself is gratifying.

The Court has made clear that the industrial action in Vaxholm was in conflict with EU law, because it prevented free movement of services.

“What the Court has established is that industrial action is part of EU law, and that it is not superior to EU law,” says Mr. Lars Gellner, Head of Labour Law at the Confederation of Swedish Enterprise.

For Laval, the judgment is a great victory.

The Court has also established that the so-called Lex Britannia is discriminating. It shall not be permissible to treat foreign companies differently from Swedish companies.

“The most important consequences in Sweden of the judgment are that the Swedish Labour Court will be able to handle the judgment in a straightforward way, and that the Swedish Co-determination in Industry Act must be changed,” says Mr. Lars Gellner.