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Norway has its Laval judgement - but this time the union won

On 5 March Norway’s Supreme Court passed judgement in what in Norwegian has become known as ‘verftsaken’, or the shipbuilding case. The judgement has been called the most important win for the Norwegian Confederation of Trade Unions (LO) in recent times. Losing this case could have been as significant for the fight against social dumping as the Laval case in neighbouring Sweden.

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The employers lost: The employers’ lawyer Kurt Weltzien didn’t mince his words when the shipbuilder case was debated at Fafo. Defeat - utter defeat was the conclusion.

Facts on the shipbuilding case

In 2008 Norway’s tariff committee decided that certain parts of the collective agreement for the shipbuilding industry should be made universally applicable. This meant that costs for travel, food and lodgings for hired workers could no longer be considered part of their wage.

Eight shipbuilders decided in 2009 to sue the state/the tariff committee. They claimed, with support from the Confederation of Norwegian Enterprise (NHO), that the decision was in breach of the EEA agreement.

The shipbuilders and the NHO lost in three courts. When the court of appeal treated the case, it asked the EFTA court for advise.

The Norwegian Supreme Court absolved the state/the tariff committee and went against the EFTA court on several points.

The shipbuilders and the employers’ organisations the Federation of Norwegian Industries and the NHO must pay court costs of more than four million Norwegian kroner (€533,000).

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Norway has its Laval judgement - but this time the union won