Kullander, Mats

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.

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

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.

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

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

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

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

The Swedish Union of Metalworkers (IF Metall [1]) signed the agreement on 23 November 2010 with: [1] http://www.ifmetall.se

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

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.