Kullander, Mats
New industrial agreement to strengthen norm-setting role
07 July 2011
Sweden experienced high unemployment and rising inflation during the early
and mid-1990s. In 1995, collective bargaining rounds resulted in open
conflict, and large pay increases over and above those set in collective
agreements were seriously threatening the country’s economic stability. To
ensure that wage negotiations in general were kept within reason, the
government argued that industries exposed to international competition should
be given the role of norm-setting. Social partners in the manufacturing
industry were therefore advised to propose a new framework for wage setting
and negotiations.
New president for white-collar confederation
20 June 2011
The Federation of White-Collar Workers (TCO [1]) is Sweden’s second largest
trade union confederation, with roughly 1.2 million members and 16 member
organisations. Approximately half of the members work in the private sector
and half in the public sector. TCO does not normally negotiate in bargaining
rounds; the confederation’s main task is to promote and defend the needs
and interests of its members in social debate and the political
decision-making process.
[1] http://www.tco.se/Default.aspx?id=7
Unions and opposition criticise government’s active labour market policy
10 May 2011
To battle long term-unemployment, the Swedish centre-right government
introduced a job and development guarantee programme in July 2007. The
programme is offered to people who have been out of work for 300 days and
have used up their time on unemployment insurance, and is divided into three
phases.
Industrial conflict avoided in the banking sector
04 May 2011
For several months the two social partners in Sweden’s banking sector, the
Financial Sector Union of Sweden (Finansförbundet [1]) and the Employers’
Organisation of the Swedish Banking Institutions (BAO [2]), negotiated over
wages and employment conditions for about 30,000 members in 375 companies.
The most recent agreement expired on 31 December 2010 and was due to be
extended. However, negotiations broke down on 16 February 2011 because of a
disagreement over whether wages should be negotiated at individual company
level or centrally. The union terminated the existing agreement and gave
notice of conflict; industrial action would begin if the parties did not
conclude a new agreement before 5 March 2011. The action, which would apply
to all members of the union, would be implemented in two steps. An overtime
and new recruitment blockade would come into effect from 5 March, and from 11
March unions indicated that employees would stop taking foreign business
trips. According to the union, the action would not affect any third parties.
The National Mediation Office (MI [3]) appointed three mediators who attended
all negotiations. During the first week of negotiations, the mediators asked
the union to postpone the notice of conflict by two days. The unions agreed
that the overtime and recruitment blockade would be moved back two days to
start on 7 March. On 6 March, however, the parties reached an agreement valid
for four years.
[1] http://www.finansforbundet.se
[2] http://www.bao.se/
[3] http://www.mi.se/index.html
Joint Investigations may break standstill on Employment Act
13 April 2011
The 1982 Employment Protection Act (LAS [1]) regulates the relationship
between the employer and the employee and is a central feature of Swedish
labour legislation. The Act applies to all employees and is designed to
ensure that they are hired in permanent employment, and cannot be dismissed
unless the employer is able to prove just cause. The employer is also obliged
to consult with the employee’s trade union if the union or the employee
concerned so request. The Act also provides that the last person employed in
a company should be the first one to lose their job in the event of
dismissals. It provides more protection for employees than similar laws in
many other European countries. However, employers are concerned that it is
too protective and that it creates rigidities in the labour market.
[1] www.eurofound.europa.eu/ef/efemiredictionary/employment-protection
Upcoming wage bargaining round of 2011
01 March 2011
During the early 1990s, Sweden experienced high unemployment and rising
inflation. To avoid large pay increases that could threaten the country’s
economic stability, the Swedish government advised unions and employers to
set up a new framework for wage setting and negotiations within industry.
Since 1997, when the Industry Agreement (/Industriavtalet/) was finalised,
the manufacturing industry has set the norm for wage increases in Sweden. The
general idea behind this approach is that sectors exposed to high
international competition should set the wage levels in the labour market.
However, this norm was questioned by several major social partners during the
wage bargaining round of 2010 (*SE1006019I* [1]).
[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/industrial-relations/wage-bargaining-round-for-2010-concludes
New assessment of the cost of a poor work environment
16 February 2011
Accidents in the workplace constitute the major part of the cost to society
of poor working conditions [1]. However, the true costs are difficult to
assess as the cost items related to the accidents are numerous and some are
partially hidden.
[1] www.eurofound.europa.eu/ef/observatories/eurwork/industrial-relations-dictionary/working-conditions
New agreement to combat youth unemployment
27 January 2011
The Swedish Union of Metalworkers (IF Metall [1]) signed the agreement on 23
November 2010 with:
[1] http://www.ifmetall.se
Gender wage inequality
31 October 2010
Charlotta Magnusson’s recent doctoral thesis [1] from the Swedish Institute
for Social Research (SOFI [2]) at Stockholm University examined the link
between the gender composition of occupations and wage differences.
[1] http://su.diva-portal.org/smash/record.jsf?searchId=1&pid=diva2:284166
[2] http://www.sofi.su.se/pub/jsp/polopoly.jsp?d=5570
Mixed reaction from social partners to new employment minister
24 October 2010
On 6 October 2010, newly-elected Prime Minister Fredrik Reinfeldt presented
his new government and its agenda for the coming four years of office. Most
of it had been known since the election campaign, and the Prime Minister
spoke optimistically about the trend towards lower unemployment and improved
state finances. Employment was the key issue in the election campaign and is
also an important part of the new agenda – the government will aim to
achieve full employment during its term. A number of measures to achieve this
aim have been presented, including apprenticeships and reduced payroll taxes
for hiring young people, to reduce high youth unemployment in the country.