Viking Line (2007): The Clash Between Workers’ Collective Action and the Freedom of Establishment
“Strikes are a fundamental right—but so are the internal market freedoms.” Viking Line shows how to reconcile two rights when they collide head-on.
Hello! Today we look at Viking Line (2007). This case is a rare example where two EU fundamental rights directly collided: the right to collective action of workers and the freedom of establishment of companies. When I first studied it, I wondered, “When fundamental rights and economic freedoms clash, where will the Court put its thumb on the scale?” Viking offers important hints. Let’s walk through the background, the legal reasoning, and what it all means.
Contents
Background and Facts
Finnish shipping company Viking Line planned to change the flag of one of its vessels to Estonia (reflagging). The aim was to reduce wage costs by hiring Estonian crew. The Finnish Seamen’s Union and the International Transport Workers’ Federation (ITF) responded by planning strikes and collective action to block the move. Viking Line argued that the unions’ action infringed its freedom of establishment (Article 43 EC) and brought proceedings.
Core Issue: Right to Strike vs. Freedom of Establishment
The case highlights a clash between two fundamental rights: the workers’ right to collective action and the freedom of establishment. The Court recognized both as protected by the Treaties and constitutional principles—yet the priority between them was contested.
| Issue | Workers’ Collective Action | Freedom of Establishment |
|---|---|---|
| Legal basis | Charter of Fundamental Rights; social rights guarantees | Article 43 EC (freedom of establishment) |
| Claim | Prevent wage cuts; protect workers | Guarantee cross-border business freedom |
| Concern | May restrict economic freedoms | May weaken protection of social rights |
The Court’s Judgment and Reasoning
The CJEU held that both rights are fundamental but neither is absolute. Even where unions pursue legitimate aims, collective action must satisfy the principle of proportionality and must not unduly restrict a company’s freedom of establishment. Key points:
- The right to strike is fundamental but not absolute; it must be balanced against economic freedoms.
- Strikes that seriously restrict the freedom of establishment may fail proportionality review.
- Union action must pursue a legitimate aim and use measures that are necessary and the least restrictive.
Impact on the EU Legal System
Viking Line is a leading case on how the EU legal order manages the tension between social rights and economic freedoms. The Court respected the right to collective action but made clear that the internal market’s freedom of establishment cannot be sacrificed. Alongside Laval, it exposed the fault lines between “Social Europe” and “Economic Europe.”
Criticism and Academic Debate
The judgment drew strong criticism for allegedly subordinating social rights to economic freedoms. Many argued that subjecting the right to strike to proportionality review effectively privileged business interests. Others praised the Court for acknowledging both rights and proposing a framework of reconciliation.
| Perspective | Main Argument |
|---|---|
| Critical | Collective action was subordinated to economic freedoms; weakening of social rights |
| Supportive | Both rights affirmed; proportionality offers a path to balance |
Contemporary Significance and Takeaways
Viking Line is still frequently cited at the intersection of labour law and internal-market law. It illustrates how protection of social rights can be limited by internal-market principles—fueling debate on EU social policy. Key takeaways:
- A leading precedent on conflicts between social rights and economic freedoms
- A textbook application of proportionality in the labour-law context
- With Laval, a spark for the “Social Europe” debate
Frequently Asked Questions (FAQ)
A Finnish shipping company sought to reflag a vessel to cut wage costs; unions responded with strike action; the company alleged an infringement of the freedom of establishment.
Which takes precedence when the right to collective action clashes with the freedom of establishment.
Both rights are fundamental but not absolute; strike action must satisfy proportionality and cannot unduly restrict establishment.
It provides a framework—grounded in proportionality—for balancing social rights and internal-market freedoms when they directly conflict.
That the judgment subordinated the right to strike to economic freedoms and thus weakened social rights.
Yes. Together with Laval, it remains a touchstone case illustrating tensions between labour law and internal-market law.
In Closing
Viking Line (2007) is a textbook illustration of a “right-versus-right” dilemma. It reminds me that the answer is not choosing sides but mastering the art of balance. For application: move calmly through the four steps—legitimate aim → suitability → less restrictive alternatives → overall balance. A strike may pursue a valid public interest yet still fail proportionality if it excessively impairs establishment. Conversely, corporate restructuring may be rational, but pushing ahead without genuine bargaining invites social-rights objections. If you have a tricky scenario, share the facts—let’s map the argument around Viking and connect it to the Laval line. 🙂
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