Labour leader Pat Rabbitte has urged the Government to tell the European Court of its opposition to the erosion of employment standards in advance of a decision in a case involving a Latvian company which has implications for jobs across the EU.
Meanwhile, Minister for Justice Michael McDowell attacked Mr Rabbitte for suggesting immigration policy should be reassessed in the light of its impact on employment standards in Ireland.
In a letter to the Taoiseach, Mr Rabbitte asked the Government to make a formal submission to the European Court of Justice on a case he says has parallels with the Irish Ferries dispute.
His letter referred to a case initially brought by the Latvian company Laval Un Partneri in the Swedish Labour Court that has been referred on to the European Court of Justice.
Mr Rabbitte maintained that intervention by the Government would demonstrate a timely and genuine commitment to counteract the "race to the bottom" and a shared understanding of the basis for a fresh partnership agreement in this country.
He said the essence of the case involved a Latvian company that was contracted to build a school in Sweden but which refused to sign up to a collective pay agreement unless their Latvian building workers were allowed to work in Sweden at a lower wage than would apply to Swedish workers.
The Swedish trade unions took industrial action against the company, which is claiming a violation of EU treaty rules on free movement.
"I, in common with Party of European Socialists colleagues and the trade union movement throughout Europe, believe the outcome of the case will be of major importance.
"There are clear parallels between this case and the recent Irish Ferries dispute, and a precedent-setting ruling by the European Court on the matter will have ramifications in this and other member states," said Mr Rabbitte.
"I believe the issue is not one of national protectionism but rather non-discrimination. In other words, national rules and agreements relating to terms and conditions of employment, including agreements that do not have a formal and legally-binding status, should apply to all those working within a country regardless of their nationality.
"Any alternative scenario would permit rampant, institutionalised exploitation and ghettoisation of migrant workers and unfair competition between employers," he said.
Michael McDowell, in Vienna for a meeting of EU justice ministers, criticised the Labour leader's views on immigration, claiming Mr Rabbitte had also been opposed to workers from Poland escaping communist rule when he was in the Workers Party in the 1980s.
He said Ireland needed to take a realistic approach to migration from the 10 new member states in the EU rather than throw obstacles in their way.