C-438/05, Viking Line [2007]

1. Facts:

• Background: Viking Line, a Finnish shipping company, planned to reflag one of its vessels from Finland to Estonia to benefit from lower labor and social requirements in Estonia.

• Reaction: The International Transport Workers Federation (ITF) planned a strike in response to this reflagging, aimed at protesting the move and protecting Finnish workers’ conditions.

2. Outcome:

• Violation of Art. 56 TFEU: The European Court of Justice (ECJ) held that the planned strike by ITF constituted a restriction on the free movement of services under Article 56 TFEU. However, it left the determination of whether this restriction was proportionate to national courts.

3. Impact and Analysis:

• Right to Strike: The case recognised the right to strike as a fundamental right, which can justify restrictions on the free movement of services under certain conditions.

• Proportionality: The Court’s ruling acknowledged that while the right to strike is important, any restrictions imposed on service providers must be proportionate. The national courts were tasked with assessing whether the ITF’s actions were proportionate and justified in this context.

• Settlement: The case reached a settlement and was withdrawn from the national court.