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SECOND
SECTION
CASE OF
SWEDISH TRANSPORT WORKERS UNION v. SWEDEN
(Application
no. 53507/99)
JUDGMENT
(Striking
out)
STRASBOURG
18
July 2006
This
judgment will become final in the circumstances set out in
Article 44 § 2 of the Convention. It may be
subject to editorial revision.
In the case of Swedish Transport Workers Union v. Sweden,
The
European Court of Human Rights (Second Section), sitting as a Chamber
composed of:
Mr J.-P. Costa,
President,
Mr A.B. Baka,
Mr I. Cabral
Barreto,
Mr M. Ugrekhelidze,
Mrs A.
Mularoni,
Mrs E. Fura-Sandström,
Ms D.
Jočienė, judges,
and Mrs S. Dollé, Section
Registrar,
Having
deliberated in private on 30 November 2004 and on 27 June 2006,
Delivers
the following judgment, which was adopted on the last mentioned
date:
PROCEDURE
- The
case originated in an application (no. 53507/99) against the Kingdom
of Sweden lodged with the Court under Article 34 of the Convention
for the Protection of Human Rights and Fundamental Freedoms (“the
Convention”) by the Swedish Transport Workers Union (Svenska
Transportarbetareförbundet - “the applicant”),
on 17 August 1999.
- The
applicant was represented by Mr K. Junesjö, a lawyer practising
in Stockholm. The Swedish Government (“the Government”)
were represented by their Agent, Mrs E. Jagander, of the Ministry for
Foreign Affairs.
- The
applicant complained that its lack of access to a court under Swedish
law to challenge the Competition Authority’s decision of
19 February 1990 had violated Article 6 § 1 of the
Convention.
- The
application was allocated to the Second Section of the Court (Rule 52
§ 1 of the Rules of Court). Within that Section, the
Chamber that would consider the case (Article 27 § 1 of the
Convention) was constituted as provided in Rule 26 § 1.
- By
a decision of 30 November 2004, the Court declared the application
partly admissible.
6. The
applicant and the Government each filed observations on the merits
and the question of just satisfaction under Article 41 of the
Convention (Rule 60). Subsequently, the Government requested the
Court to strike the application out of its list of cases.
THE FACTS
THE CIRCUMSTANCES OF THE CASE
- The facts of the case, as submitted by the parties,
may be summarised as follows.
- As from 1976 there had been a clause in the collective
labour agreement (kollektivavtal – “the
agreement”) between the applicant union and the Swedish
Association of Newspaper Publishers (Svenska
Tidningsutgivareföreningen – “the Association”)
which read as follows:
“Companies which are bound by this collective
agreement and hire a contractor must draw up a separate contract with
the Swedish Transport Workers’ Union¹. ...
[Footnote 1: Distribution work on foot, by bicycle or by
car may not be carried out by contractors.]”
- The
clause was introduced on the initiative of the applicant, under
threat of industrial action, with a view to preventing the
agreement’s clauses on salaries being circumvented by member
companies of the Association hiring contractors not covered by the
agreement. According to the applicant, the clause served an important
purpose in that it protected a weaker party from being forced to
abandon the status of an employee covered by the social security
system and become a contractor not covered by this system.
- In
1995 T., a company belonging to the Association, hired a contractor,
the L. company, to carry out the distribution of newspapers by car in
a district where a union member had previously performed that task.
As the applicant considered that this action violated the relevant
clause in the agreement, it sued the Association and T. before the
Labour Court (Arbetsdomstolen) in 1996, after negotiations
between the parties had failed. The Association and T. claimed that
the clause adversely affected competition in the
newspaper-distribution market and thus violated the Competition Act
(konkurrenslagen, SFS 1993:20).
- On
16 September 1998 the Labour Court, by seven votes to two, found for
the applicant, inter alia rejecting the argument that the
disputed clause infringed the Competition Act. The minority
considered that the clause was incompatible with section 6 of the
Act.
- In
1996 the L. company complained to the Swedish Competition Authority
(Konkurrensverket), claiming that the clause in question
violated the Competition Act, in that it prohibited the use of
contractors and thus restricted competition in a manner contrary to
section 6 of the Act. The Competition Authority heard evidence from
the Association, T. and four other member companies, as parties to
the case. The applicant was given the opportunity to submit its
observations on the case but was not formally a party to the
proceedings.
- In
a decision of 19 February 1999, the Competition Authority first
observed that its examination of the case was limited to considering
whether the decision by the Association and its member companies to
include the clause in the agreement with the applicant was contrary
to section 6 of the Competition Act. It then went on to consider the
newspaper-distribution market, and the restrictive effects which the
clause had on that market. While taking note of the Labour Court’s
judgment, the Competition Authority found that the decision had in
effect noticeably hindered, limited or made difficult competition in
that market, and therefore violated section 6 of the Competition Act.
As a consequence, the Association and its member companies were
ordered, under section 23 of the Competition Act, to discontinue
applying the decision in question. Thus, in effect, the clause became
invalid.
- Under
section 60 of the Competition Act, only a company affected by the
Competition Authority’s decision could lodge an appeal against
it to the Market Court (Marknadsdomstolen). No appeal was
lodged against the decision of 19 February 1999.
- According
to information submitted by the Government, a legislative review of
the limitations on access to a court implied by section 60 of the
Competition Act is currently being carried out and is due to be
concluded by 1 November 2006 (Tilläggsdirektiv till
Utredningen om en översyn av konkurrenslagen (N 2004:19)
Dir. 2005:75). The review is made with specific reference to the
above-mentioned decision of 19 February 1999 by the Competition
Authority and the Government’s acknowledgment that there has
been a violation of Article 6 of the Convention in the present case.
THE LAW
APPLICATION OF ARTICLE 37 OF THE CONVENTION
A. The Government’s invitation to the Court to
strike the case out and the applicant’s objections thereto
- On
17 January 2006 the Government reiterated their acknowledgment, made
both before and after the Court had declared the application partly
admissible, that there had been a violation of Article 6 § 1
of the Convention in the present case. Moreover, they
confirmed their willingness to review section 60 of the Competition
Act, referring to an additional directive of 30 June 2005 related to
the ongoing review of the Competition Act, the conclusions of which
were scheduled to be reported no later than 1 November 2006.
- Furthermore,
the Government stated their preparedness to pay the applicant union
compensation for the violation of Article 6 § 1, but not for the
original complaints under Articles 11 and 13 which the Court had
declared inadmissible. Their offer comprised the following items: (1)
SEK 40,000 in compensation for non-pecuniary damage resulting from
the applicant’s lack of access to a court; (2) SEK 140,000
(inclusive of value-added tax – “VAT”) for its
lawyer’s work in the Strasbourg proceedings (80 hours at
SEK 1,750 per hour); and (3) SEK 8,160 (VAT included) for the
costs of translating the applicant’s observations in reply to
those of the Government.
- As
regards item (1), the Government stressed that, whereas the applicant
had claimed SEK 500,000 for violations of Articles 6 § 1, 11 and
13 of the Convention, the complaints under the latter two provisions
had been declared inadmissible. With respect to item (2), the
Government submitted that they were not prepared to pay the SEK
20,000 claimed in respect of domestic legal costs before the
Competition Authority. The applicant had not been a party to those
proceedings. Nor had the number of hours spent or the rate charged
been specified.
- In
the light of the above, the Government invited the Court to strike
the case out under Article 37 § 1 (c) of the Convention, which
reads, in so far as relevant, as follows:
“1. The Court may at any stage of the
proceedings decide to strike an application out of its list of cases
where the circumstances lead to the conclusion that ...
(b) the matter has been resolved; or
(c) for any other reason established by the
Court, it is no longer justified to continue the examination of the
application.
However, the Court shall continue the examination of the
application if respect for human rights as defined in the Convention
and the Protocols thereto so requires.”
- The
applicant union objected to the Government’s request to strike
out the application, and invited the Court to proceed with its
examination of the case. It submitted that the Government’s
acknowledgment of a violation of Article 6 § 1 of the Convention
had no legal value before the Swedish courts. Were the applicant to
seek a judicial order quashing the Competition Authority’s
decision of 19 February 1999, a finding of a violation by the
Strasbourg Court would have much more weight.
- The
applicant union moreover disputed that the sum offered by the
Government, SEK 40,000, would constitute adequate just satisfaction
for the damage caused by the violation of the Convention; they had
claimed SEK 500,000 on account of the violations of Articles 6 §
1, 11 and 13 of the Convention. The ongoing review of section 60 of
the Competition Act did not in any way deal with the problem and no
action had been taken so far to remedy the damage caused.
- Finally,
the applicant contested the fact that the Government were not
prepared to reimburse the legal costs of the domestic proceedings,
nor any costs incurred in relation to its complaints under Articles
11 and 13 of the Convention. The applicant insisted that it should be
reimbursed SEK 20,000 for the legal costs incurred before the
Competition Authority and SEK 257,031 (117.5 hours at the rate of SEK
2,187.50, inclusive of VAT) for such costs incurred before the
Strasbourg Court.
B. The Court’s assessment
- The
Court reiterates that on 30 November 2004 it declared admissible the
applicant’s complaint under Article 6 § 1 of the
Convention concerning a lack of access to a court, and declared the
remainder of the application, including complaints under Articles 11
and 13 of the Convention, inadmissible.
- In
its examination of the Government’s request to strike the case
out under Article 37 § 1 (c ) on the basis of their unilateral
declaration, the Court will have regard to the (non-exhaustive)
principles stated in the Tahsin Acar v. Turkey judgment
(Preliminary issue) [GC], no. 26307/95, §§ 75-77,
ECHR 2003-VI).
- First,
the Court observes that not only after, but even before, it declared
admissible the applicant’s complaint about the lack of access
to a court to challenge the Competition Authority’s decision of
19 February 1999, the Government acknowledged unequivocally
that the matter had given rise to a violation of Article 6 § 1
of the Convention. The Court also takes note of the ongoing
legislative review of section 60 of the Competition Act with specific
reference to the Competition Authority’s aforementioned
decision, due to be completed by 1 November 2006.
- In
this connection, the Court recalls that in a number of previous cases
it has had the opportunity to rule on the scope of the right of
access to a court implied by Article 6 § 1 of the Convention.
Several such cases have originated in applications lodged against
Sweden, which has shown willingness to take general measures (see for
instance the 1988 Act on the Judicial Review of Certain
Administrative Decisions - lagen om rättsprövning av
vissa förvaltningsbeslut 1988:205) in the light of the
Court’s judgments.
- The
Court is further satisfied that the amount offered by the Government
in compensation for non-pecuniary damage – SEK 40,000 - would
constitute adequate pecuniary redress for the impugned absence of
access to a court. Moreover, it considers that the sums proposed by
them for the reimbursement of costs and expenses – totalling
SEK 148,160 - could reasonably be considered to correspond to what
has actually been incurred by the applicant union in order to obtain
redress for the alleged violation of Article 6 § 1 of the
Convention, and is acceptable as to quantum.
- Against
this background, the Court considers it no longer justified, within
the meaning of Article 37 § 1 (c) of the Convention, to continue
the examination of the present application, and finds no reasons of a
general character, as defined in Article 37 § 1 in fine,
which would require the further examination of the case by virtue of
that provision. Accordingly, the application should be struck out of
the list.
FOR THESE REASONS, THE COURT UNANIMOUSLY
Decides
to strike the application out of its list of cases.
Done in English, and notified in writing on 18 July 2006, pursuant to
Rule 77 §§ 2 and 3 of the Rules of Court.
S. Dollé J.-P. Costa
Registrar President