Archive for February, 2009

Acas Report on Lindsey Oil Refinery

A really clear report from Acas on the Lindsey dispute (here). To be honest the Posted Workers Directive was always a red herring. The UK took no steps to implement the Directive when it was passed and took the view that our minimum wage laws and other regulations were sufficient. Given that, complaints by Alan Johnson about European Court of Justice decisions limiting its scope seem quite unfair.

What is significant I think is that under Article 49 of the Treaty, it seems it is unlawful to insist on outside contractors observing terms and conditions that go beyond the legal minimum. That is a serious and potentially wide reaching point. At Lindsey, Total insisted on compliance with the national collective agreement - ‘the Blue Book’ - as a condition of winning contracts. As it happens it seems that the contractors concerned are happy to comply but it seems as if such a requirement may amount to a breach of Article 49. I doubt that many member states would be happy with that result.