In a decision rendered on April 3, the Court of Justice of the European Communities ruled that a national legislation which conditions the award and performance of a public contract to comply with the minimum wage defined in a national collective agreement is contrary to Community Law. After the Laval case (see our article No. 071034), this decision confirms that decentralized conventional systems are particularly disarmed against social dumping. (Ref. 080268)
Facts. Legislation in the Land of Lower Saxony on public contracts imposes on tenderers and their subcontractors to pay their workers posted as part of the performance of a public contract at least the wage planned by the collective agreement applicable where the contract is performed. In the case submitted to the Court, a Germany company appealed to a Polish subcontractor which posted workers in Germany, paid half the minimum wage planned by the collective agreement applicable where the contract was performed.
Do you have information to share with us?