M/S Rosella and the freedom of establishment
in the EU

Viking Line is extremely satisfied with the judgment given by the European Court of Justice. The decision supports the basic matters of principle defended by Viking Line in the High Court of Justice in London in its summons against ITF and the Finnish Seamen’s Union in autumn 2005, which is shown in the conclusion drawn by the European Court of Justice, namely:

1) The European Court of Justice confirms Viking Line’s opinion that strike and lockout actions can be examined in relation to the freedom of establishment within the EU.

2) The European Court of Justice further confirms that Viking Line has the right to bring action against the Finnish Seamen’s Union and ITF (International Transport Federation) (direct horizontal effect)

3) Furthermore, the European Court of Justice confirms that a strike aiming at preventing re-registration of a ship to another EU country forms a restriction of the freedom of establishment within the EU and can only come into question in cases where such actions can be considered acceptable for the purpose aimed at and where all other possibilities with a less restrictive effect have been used.

In the Rosella case the strike and lockout actions cannot be considered justified, because Viking Line had undertaken not to give notice to the personnel.

Background:

Rosella started on the Helsinki–Tallinn route in August 2003. During the process in the High Court of Justice the substantial wage difference between vessels operating under the Finnish and Estonian flag was settled in such a way that there is at present a unanimous opinion that the wage costs in Estonia are about 55–60% of those in Finland.

It has later been proven by statements given by Estonian seamen applying for a job on Finnish ships that the wages on Finnish ships are twice as high as those on the Estonian ships sailing in the northern parts of the Baltic Sea. The evidence of the case has also made it clear that the said wage difference makes it impossible for Finnish ships to compete with Estonian ships. The expansion realised on this route has been produced by ships operating under Estonian contracts.

Mariehamn 11.12.2007

For further information, please contact:

Vice President Jan Hanses, Viking Line, tel. +358 18 27000
Ms Johanna Boijer-Svahnström, Head of Information, tel. +358 18 27748, johanna.boijer@vikingline.fi