Another blow to organised labour within the EU.

national | eu | press release Thursday April 03, 2008 17:32 by Frank Keoghan - People's Movement/Gluaiseacht an Phobail info at people dot ie 087 2308330

Ruffert case Germany

This morning the European Court of Justice delivered a ruling in the so-called ”Rüffert-case”. The case concerns a conflict between the German land of Niedersachsen and the construction firm ”Objekt und Bauregie GmbH”. In the state law of Niedersachsen concerning tenders for public contracts, it is stated that companies and their sub-contractors must pay their employees the salary fixed according to collective agreements.

PEOPLE'S MOVEMENT/GLUAISEACHT AN PHOBAIL*

3rdApril 08

PRESS RELEASE

Yet another EU judgment undermines negotiated conditions in the labour market
This morning the European Court of Justice delivered a ruling in the so-called ”Rüffert-case”. The case concerns a conflict between the German land of Niedersachsen and the construction firm ”Objekt und Bauregie GmbH”. In the state law of Niedersachsen concerning tenders for public contracts, it is stated that companies and their sub-contractors must pay their employees the salary fixed according to collective agreements.
This provision was incorporated in the contract between Niedersachsen and Objekt und Bauregie, but it was broken when a Polish sub-contractor PKZ only paid their 53 employees 46.57% of the fixed minimum salary. The court has determined that the EU rules concerning free exchange of services prevents local authorities demanding that posted workers must be paid according to the current agreement in the area in question.
Frank Keoghan, Secretary, Peoples Movement commenting on the ruling said that: - ‘With the Rüffert-judgment the EU court has rejected the principle that municipalities or other public authorities can demand suppliers and sub-suppliers to match current salary and working conditions in the area in question.
‘The judgment shows’, he continued, ‘that EU rules of the single market not only causes problems for the rights of workers in the whole of the EU. The Court’s ruling means that it is now impossible to prevent unequal treatment of posted workers. The Vaxholm judgment against the right to strike was a warning to all workers in the EU and the Rüffert-judgment is an open declaration of war’. Keoghan called on trade unions to forcefully resist this development.
‘No matter what the trade union’s attitude is to the Treaty of Lisbon, they must all agree that support for it would be unacceptable as long as the right to oppose social dumping is not secured’ he concluded.
[ENDS]
Frank Keoghan
Secretary
087 2308330