This article analyses the trilemma the EU is facing concerning three fundamental principles on which the Community rests: free movement of services and labour; non-discrimination and equal treatment, and the rights of association and industrial action. With rising cross-border flows of services and (posted) labour after the Eastward enlargement, the conflict between these rights has triggered industrial disputes and judicial strife. In the view of the European Court of Justice (ECJ), highlighted in the Laval Quartet, some principles are more fundamental than others. Tracing the 'dual track' along which European integration has evolved, whereby supranational market integration has been combined with national semi-sovereignty in industrial relations and social policies, our claim is that the supremacy of free movement over basic social rights implied by the ECJ judgments is leading Europe in a politically and socially unsustainable direction. To prevent erosion of the European Social Models and of popular support for European integration, the politicians have to reinsert themselves into the governance of the European project. A pertinent start would be to ensure that the rising mass of cross-border service workers in Europe become subject to the same rights and standards as their fellow workers in the emerging panEuropean labour market.

The so-called 'Posting of Workers Directive' was an integral part of the European Commission (EC) Action programme linked to the Community Charter of Fundamental Rights of Workers and was meant to establish a legal frame for labour conditions of workers posted for a temporary period to another Member State. Its content is about equal treatment, a guarantee of minimum protection, fair competition and respect for the regulatory frame in the host country. In the cases included in this article, increased divergence can be observed with respect to the role of the state versus the social partners with regards to regulation and control. The over-riding challenge nowadays is to develop effective mechanisms of enforcement compatible with the constraints of European Union principles and regulations. In the EC documents, any reference to the Community Charter of Basic Rights of Workers has disappeared and the weight of power has shifted in favour of the free market hardliners, who seem to regard the Directive as an oddity in breach with the logic of the four freedoms.

This article discusses how the actors in the internationally exposed sectors of four Nordic economies responded to the economic crisis of 2008. Though Denmark, Finland, Norway

There has been much recent attention to the upheavals, often externally induced, in collective bargaining and labour market regulation in southern European countries. In this article, we introduce a set of studies of changes, typically employer-driven, in collective wage regulation in northern Europe. We discuss possible drivers of change: contagion from southern Europe, regime competition among the northern countries themselves and/or destabilizing effects of east–north integration, driven by free movement. These drivers interact with internal change dynamics spurring diverging actor responses and institutional outcomes. We outline the common research design, review salient features of wage regulation in six countries, and differences in institutions, production, markets and factor mobility in four sectors. We briefly review findings from the other articles.

This article discusses differences in the responses of company employee representatives to variable pay systems, drawing on a comparative study in the metalworking sector in Austria, Norway, Spain and the UK. We find that the approaches of organized labour are contingent, first, on the type of pay system and its influence on total remuneration; and second, on the role of local trade unions or works councils within the national system of pay determination.