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EU Court Rules Against Swedish Unions

Published tisdag 18 december 2007 kl 10.30

Swedish unions have lost a case over the use of cheap labour from eastern Europe, after the European Court of Justice ruled unions were not entitled to force a foreign company to implement Swedish pay deals.

The issue of cheap labour entering western Europe from the often poorer eastern European countries has divided European Union member states since the bloc expanded eastwards in 2004.

The case was brought after Swedish unions blockaded a building site in Sweden where a Latvian construction company was paying Latvian workers below Swedish rates.

The court ruled that the obstruction of construction sites represented a restriction on the freedom to provide services.

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