Rules on working conditions in Europe: Subordinated to freedom of services?

Abstract

Industrial relations in most European countries are based on a national regulatory framework consisting of both labour legislation and provisions laid down in collective agreements. This institutional framework provides rules and procedures for working conditions and social security. These rules and procedures are important contributions to a general feeling of justice and fair treatment, and are perceived as powerful instruments to defend workers’ rights. The introduction of free market principles has brought new challenges for the functioning of this framework, as liberalization and deregulation became the leading principles for the modelling of labour markets. Recent ECJ rulings and European Commission infringement procedures assert the primacy of the supranational principle of free movement in the business environment. The author discusses the inconsistencies in the EU approach.