New bill eases barriers to employment of migrant workers
The government has proposed a new regulation on foreign labour immigration from non-EU countries, which aims to be more flexible and efficient while securing existing working conditions and wages. The bill suggests that employers should be able to hire migrant workers without consulting the National Labour Market Administration or trade unions. Public authorities and the social partners have given mixed reactions to the proposal.
Main provisions of bill
As Sweden is currently experiencing a lack of skilled labour, increased labour immigration from non-EU countries seems to be one way of meeting this challenge. A new bill (in Swedish, 337Kb PDF) proposed by the government aims to enhance the entry of migrant workers to the labour market in the following ways:
- employers will have the opportunity to recruit workers from non-EU countries;
- migrant workers can be employed on condition that no qualified employee is available in Sweden or within the EU for the positions in question; furthermore, migrant workers should obtain the same working conditions and wages as defined in the respective collective agreement, in order to prevent social dumping;
- qualified workers within professions with a labour shortage should be able to apply for job-seeking asylum (jobbsökarvisum) in Sweden;
- rules on seasonal work will fall under the laws on residency (uppehållstillstånd) and work permits (arbetstillstånd);
- persons who have been denied asylum can, alternatively, be granted a time-limited residence permit in the country and a work permit;
- the National Labour Market Administration (Arbetsmarknadsverket, AMV) will no longer analyse labour market demand, as the Swedish Migration Board (Migrationsverket) will monitor and handle all cases of labour immigration.
According to the Minister for Migration and Asylum Policy, Tobias Billström, the essence of this bill is that employers will be able to decide whom to employ providing that the standard levels of working conditions and wages are secured. Mr Billström also believes that the trade unions today have too much to say about this matter.
Changes affecting trade union influence
Under the provisions of the proposed bill, the trade unions will no longer have the same level of influence in deciding the sectors of the economy which should attract foreign workers. The Swedish Trade Union Confederation (Landsorganisationen i Sverige, LO) is critical of this proposal. According to Senior Economist at LO, Dan Andersson, the confederation does not oppose labour immigration in general, but believes that the reform will radically change the labour market situation. He noted: ‘Previously, we had a system where the social partners made a common assessment on workforce demand.’
The Swedish Confederation of Professional Employees (Tjänstemännens Centralorganisation, TCO) also argues that the unions’ position should be maintained in order to carry out a serious and fair assessment of the demand for migrant workers. The Swedish Confederation of Professional Associations (Sveriges Akademikers Centralorganisation, SACO) believes that additionally qualified workers entering the Swedish labour market will have positive effects for the country, resulting in economic growth and more jobs. Moreover, SACO considers that the government’s suggestion regarding job-seeking asylum is worth trying, but should be regulated by bilateral national agreements.
The Confederation of Swedish Enterprise (Svenskt Näringsliv) considers labour migration as one way of addressing the lack of qualified workers in Sweden. Today, there is a shortage of labour in sectors such as information technology (IT) and construction. This situation will become more problematic due to demographic changes, since there are fewer young people to support an ageing population. However, the confederation is critical of the government’s proposal on how to deal with refugees already in Sweden. For example, it should be easier for persons with a job and who have been denied asylum to now obtain a work permit.
Opposition parties oppose proposal
Both the Swedish Social Democratic Party (Socialdemokraterna) and the Left Party (Vänsterpartiet) disagree with the government’s suggestion. The Social Democrats oppose the idea of reducing the influence of trade unions and the transfer of AMV’s responsibility to manage labour immigration. This will mean that the unions will lose some of their power compared with employers, due to the reduced control by external authorities on companies’ labour force decisions. The Left Party believes that social dumping could become a risk if trade unions’ influence on labour force demand diminishes and control of working conditions and wages is compromised. According to the Left Party, there are also international examples where migrant workers have been unfairly treated, thereby weakening workers’ rights.
Commentary
At present, Sweden’s supply of qualified labour does not meet employers’ demands. Therefore, to tackle this problem, Sweden – like many other countries – has to attract talent from outside the EU. Even if all unemployed people and those on sick leave where to be employed, Sweden would still have a shortage of skilled labour. Denmark has started a similar process to attract qualified workers from abroad, by using its embassies as the point of entry for migrant workers (DK0704059I, DK0701029I).
Thomas Brunk, Oxford Research