Internal Market Commissioner Charlie McCreevy has reiterated his support for the Latvian firm Laval Un Partneri in its recent dispute with a Swedish trade union before MEPs in Strasbourg on 25 October.
In 2004, the union ordered Laval Un Partneri - which had been contracted to build a school in Sweden - to pay Swedish wages and also to sign its workers to a Swedish collective wage agreement. When Laval refused, the union blocked the construction, and thus the local government was forced to find another contractor. Eventually, Laval declared bankruptcy and has filed a suit with the European Court of Justice.
Summoned to the EP to justify his support, McCreevy said that "Latvian trade union members are entitled to have their interests defended as much as Swedish trade union members". In McCreevy's view, the union's prime concern was to protect Swedish jobs. "The Commission does not call into question the system of labour relations in Sweden or any other member state", he said. "But it is not about whether the social system of one country is under threat, or whether it is an example to the others. The real issue to me is what do we mean by an internal market?"
McCreevy's support for Laval is seen by many as an attack on the Swedish approach of collective labour regulation via agreements between employers and unions.
"The Commission respects all social models", said President Barroso, who also attended the EP hearing.
