The European Commission has referred Spain to the Court of Justice for failing to comply with a previous judgement concerning freedom of establishment at Spanish ports.
It now invites Spain to rapidly undertake the necessary reforms in order to comply with the judgement, or the Court may decide to impose financial penalties on Spain.
Professor Eric Van Hooydonk, advocate and professor of port law, commented on the ruling: “The second infringement procedure against Spain does not come as a surprise.”
“Spanish Government was unable to adapt its legislation and to liberalize the labour market. Since the current government is a caretaker government and the country is heading for new elections, the European Commission could no longer waste time. The start of a second infringement procedure and the threat of financial fines will put pressure on the new Spanish Government to effectively reform port labour.”
In December 2014, the Court of Justice of the EU ruled that the Spanish legislation on dock labour, conflicts with the freedom of establishment as enshrined in Article 49 of the Treaty on the Functioning of the European Union (TFEU).
The article obliges undertakings of other Member States wishing to exercise the activity of cargo-handling in Spanish ports of general interest to register with the Dockers’ Management Public Limited Liability Company and to hold shares in this company.
Cargo-handling companies are obliged to employ as a priority workers provided by this company.
The Spanish authorities had until February 2015 to communicate to the Commission on measures taken to comply with the Court's judgement.
No measures complying with this judgement have been taken and no clear timeframe for the implementation of such measures has been communicated to the European Commission.
Professor Hooydonk continued: “The decision fits in perfectly with the judgment issued by the EFTA Court on 19 April, in which the comparable port labour regime of Norway was considered contrary to the free movement and free competition rules as well as to human rights.”
The message is that monopolistic pool systems in ports have to disappear and that this labour market must be subject to competition.”
