The Vaxholm case from a Swedish and European perspective

Abstract

The Vaxholm (or Laval) case concerns an industrial action undertaken on a building site in Vaxholm, a town not far from Stockholm, Sweden. The work was performed by Latvian workers employed by a Latvian company. In order to put pressure on the company to conclude a collective agreement the Swedish Building workers' union initiated industrial action, including a ban on all building and installation. This blockade was supported by the Electricians' Union through a secondary action. Both the primary and the secondary actions were lawful under Swedish law. The case raises the question whether the industrial action or Swedish law is contrary to Community law on the free movement of services or the Posted Workers Directive. The case is now pending before the European Court of Justice (ECJ). The aim of this article is to present the background and context of the Vaxholm case for a non-Swedish audience and to outline the main issues of legal interpretation at stake, as well as their background in the Swedish industrial relations system and in Swedish and European law. The authors also point to some probable solutions in the light of earlier case-law of the ECJ.