As a result of the findings in the Laval case, heard before the Court of Justice in December 2007, the Swedish trade unions – which had been behind a collective action whose aim was to obstruct instances of social dumping practised by a foreign service provider – were ordered to pay punitive damages. This event gave rise to a process of amendment of the relevant Swedish law, culminating in the enactment of the so-called Laval Act, which sets strict limits on collective autonomy and on conflict, while at the same time outlawing collective actions against foreign enterprises constrained by a collective contract signed in their countries of origin with their local trade unions.
Keywords: Collective action - Violation of the free circulation of services - Conviction of trade unions - Reimbursement with punitive damages