The European Commission said Wednesday that restricting the movement of workers from one EU country to another was not a solution to the economic crisis, a reference to recent anti-foreigner strikes in Britain.

Hundreds of employees have been protesting at an oil refinery in eastern England where a dispute started after a construction contract was awarded to an Italian sub-contractor which hired workers from Italy and Portugal.

"Free movement is a fundamental value of the European Union," said EU Social Affairs Commissioner Vladimir Spidla in a statement.

"Experience has clearly shown us that it is not by creating barriers now and trying to restrict the internal market that we will protect ourselves from the crisis," he said. "Erecting barriers will not create jobs."

Striking workers looked set Wednesday to end their action in recession-hit Britain after they were offered half the jobs on the disputed contract.

Trade unions said they would advise staff at the Lindsey oil plant in Lincolnshire to end their wildcat strike after employers and the refinery's French owner Total improved their offer in tense talks.

In the European Union, a citizen of one country is at liberty to move and seek work in another without needing work visas or residency permits.