Viking Line ABP operated a ship called
The Rosella between
Estonia and
Finland. It wanted to operate under the
Estonian flag so that it could use Estonian workers on lower wages than the higher Finnish wages for the existing crew. The policy of the
International Transport Workers' Federation (ITWF) was to oppose such "reflagging" for convenience by companies registering their ship abroad in a low labour cost jurisdiction, when their real seat is in another country. The
Finnish Seamen's Union, a member of the ITWF, planned
industrial action. The ITWF told its partners to not negotiate with Viking and hinder its business. Viking Line ABP responded by seeking an
injunction in the English courts, claiming that the industrial action would infringe its right to
freedom of establishment under TEC art 43, now TFEU art 49. The
High Court of Justice granted the injunction, but the
Court of Appeal of England and Wales overturned the injunction on the
balance of convenience. It held that there were important issues of EU law to be heard, given that, in the words of Waller LJ, it affected the "fundamental rights of workers to take industrial action". So it made a TEC article 234 reference (now article 267) to the
European Court of Justice. ==Judgment==