Swedish Union sues Lithuanian scaffolding firm

Accused of withholding wages and substantial tax and social security contributions.

Scaffolding company Global Scaffolders UAB faces a SEK 107.8 million lawsuit from Swedish construction union Byggnads over alleged systematic wage violations.

The union claims its investigation revealed workers have been required to work nine hours daily, Monday through Saturday, for several years while receiving pay for only 40-hour work weeks. The company allegedly profited millions from unpaid wages, overtime compensation, weekend premiums and other statutory benefits.

“This is a textbook example of a company that needs to be removed from our job sites. The company has deliberately violated collective agreements and profited enormously as a result. They have deceived their employees and undercut legitimate companies that follow laws and regulations,” said Emil Persson, contracts secretary at Byggnads.

Industry oversight criticized

The Lithuania-based company has operated on several of Sweden’s largest construction projects, including the Stockholm Bypass, West Link rail project, and Oskarshamn Nuclear Power Plant.

“Byggnads cannot clean up this industry alone. Clients and main contractors must take greater responsibility. When contracts specify 40-hour work weeks but job sites are packed with workers every Saturday, it’s obvious something is wrong,” Persson said.

Byggnads alleges Global Scaffolders has also withheld substantial tax and social security payments. The union has referred its findings to relevant authorities for further action.

IndustryRadar is seeking Global Scaffolding for a comment.