Denmark: concerns about the future of the Scandinavian social model after the CJEC’s decision on union action against social dumping

The decision rendered by the Court of Justice of the European Communities in the Laval un Partneri case (see our articles No. 071034 and 071042), which ruled on the Swedish building trade union blocking a construction site, run by a company which posted Latvian workers, in the light of the free movement of services, stirred up many reactions and concerns in Denmark. Some see in it an offence to the right to collective dispute and a threat to social partners' right of regulation of the labour market. The government committed to protect the model. (Ref. 080094)
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A risk of social dumping. Many Danish unions and left-wing parties fear that this decision from the Court of Justice of the European Communities, which ruled that the Swedish union’s action was a restriction of the free movement of services within the EU, will allow social dumping since, according to the decision, a foreign company which signed a collective agreement with trade unions in its country does not have to respect those from the country in which it posts its workers. Moreover, researc

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