The Luxembourg-based Court of Justice of the EC ruled in Case C-341/05 Laval un Partneri Ltd v Svenska Byggnadsarbetareförbundet and Others. In its judgment, the Court said that collective action by which a trade union attemps to force a foreign service provider to enter into negotiations on pay and to sign a collective agreement is consistent with community law. It further ruled that such action in the form of a blockade (‘blockad’) of sites constitutes a restriction on the freedom to provide services, which, in this case, is not justified with regard to the public interest of protecting workers. The Swedish Law on the posting of workers sets out the terms and conditions of employment falling within the matters listed in Directive 96/71, save for minimum rates of pay. The Law is silent on remuneration, the determination of which in Sweden is traditionally entrusted to labour and management by way of collective negotiations. Under Swedish law, trade unions are entitled to have recourse to collective action, under certain conditions, which is aimed at forcing any employer both to enter into negotiations on pay and to sign a collective agreement. In May 2004, Laval un Partneri Ltd, a Latvian company, posted workers from Latvia to work on building sites in Sweden. The work was carried out by a subsidiary, L&P Baltic Bygg AB, and included the renovation and extension of school premises in the town of Vaxholm.Laval un Partneri Ltd.
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