In Finnish Seamen’s Union v Viking Line ABP the European Court of Justice held that, in principle, trade unions have the right to take collective action to prevent employers from hiring workers from EU countries that guarantee fewer employment rights. Such action can be exercised only to protect existing working conditions and not as a measure to exclude the freedom of establishment and prevent a business move to another country.
In Laval un Partneri v Svenska Byggnadsaretare-forbundet the ECJ ruled against a Swedish trade union that tried to insist that a Latvian business to sign a Swedish industrial agreement and pay its employees in Sweden higher wages.
