Major pay conflict breaks out in municipal sector

In early April 2003, the Swedish Municipal Workers' Union (Kommunal) gave notice of strike action by some of its members in the municipal and city council sector (mainly working in childcare and hospitals), in a dispute over a new pay agreement. Later in the month, the union escalated its action to include about 46,000 workers in 60 municipalities (out of 290). In total, some 65,000 workers are so far involved in the dispute, while the Swedish Electricians' Union has also given notice of a strike by 5,000 members employed in the municipal and city council sectors.

In the spring 2001 collective bargaining round, the Swedish Municipal Workers' Union (Svenska Kommunalarbetareförbundet, Kommunal) and its employer counterparts - the Swedish Association of Local Authorities (Kommunförbundet) and the Federation of County Councils (Landstingsförbundet) - concluded a pay agreement for blue-collar workers in the municipal and city council sector running for three years, until the end of March 2004 (SE0105102F). The agreement covered about 420,000 Kommunal members, working mostly in local healthcare, hospitals and schools, and promised to be one of the best deals in the 2001 bargaining round, with an 11% pay increase over three years. However, Kommunal members were not happy with their subsequent wage growth, in that local negotiations did not give them the same wage increase as those awarded to other union members in the same sector, both white-collar workers (for example, nurses) and professionals (for example, doctors). Thus, in October 2002, the head of Kommunal, Ylva Thörn, on behalf of her members took up the option, provided for in the 2001 agreement, to cancel the accord one year before it expired (ie at the end of March 2003 rather than March 2004) (SE0211103N).

Negotiations over a new agreement began between Kommunal and the municipal and city council employers' organisations in January 2003. Kommunal demanded a general pay increase of 5.5% for 2003, and a guaranteed minimum wage of SEK 14,000 per month for all members. The employers said that they were willing to award a 4.2% pay increase to Kommunal members in healthcare and 2.4% to the remainder. The two sides acknowledged that their positions were a long way apart and mediators were called in to lead the negotiations. Both sides turned down the first proposal from the mediators at the end of March 2003. The second and final mediation proposal, issued on 7 April 2003 and providing for a 5% increase for 2003 for healthcare workers and 2.4% for the rest, was also rejected. Kommunal stated that it must pay attention to all its members and not favour one group, even if this group is low-paid. The employers agreed that the healthcare employees were entitled to an increase, but said that there were no resources to fund significant increases for other groups.

In early April, Kommunal issued its first notice of strikes and other industrial action. All Kommunal members in 'middle-sized' cities such as Örebro, Halmstad, Gävle were called out on strike on 23-29 April, with the exception of workers involved in care of the elderly, psychiatric care and care of people with disabilities. 'Life-saving' services were also excluded (though made subject to an overtime ban), as was the care of livestock at farming schools. A blockade of new recruitment was instigated in all municipalities and city councils from 23 April. Traffic wardens and workers emptying parking meters were called out on strike in all municipalities, as were workers in refuse dumps (until 14 May 2003).

In six cities (municipalities) all daycare personnel in day nurseries were called out on strike until 29 April and their work tasks 'blockaded'. Workers involved in care of children with mental or physical disabilities or special needs were excluded. Furthermore, municipal workers (mostly assistant nurses) in certain departments (eg geriatric departments) at five large city hospitals also came out on strike but their work tasks were not blockaded, and could thus be carried out by other workers in the hospitals. In all, about 9,000 workers were involved in industrial action during the period 23-29 April 2003.

On 16 April, Kommunal issued a second set of notices of strikes and other actions, involving another 10,000 members from 5 May. These covered all Kommunal members in a number of municipalities, plus members in certain departments at a number of hospitals, with strikes of one or two weeks.

On 25 April 2003, Kommunal gave notice of wider-scale strike action, concerning all its members working in 60 of Sweden's 290 municipalities. The 25 April notice related to a total of 46,370 workers - all members in these 60 municipalities, plus all members working as childminders and in child daycare in Stockholm and Uppsala and some members working in various departments at large hospitals in some regions in the west, north and south of Sweden. All work tasks are declared to be under a blockade. Employees working with old people and people with disabilities, or in municipal health and psychiatric care, are excluded from the action. In total, 65,000 Kommunal members have so far been covered by the action called during April and May 2003.

Kommunal has possibly escalated the conflict in an attempt to exert pressure to restart negotiations. The employers have not taken action in response to Kommunal's strikes, perhaps because a lock-out would be expensive for the 'poor' municipalities with major financial problems. It is possible for the social partners to go back to the negotiating table when they wish, even if strike actions are going on.

On 30 April, Kommunal gave notice of a strike by 600 workers in another 10 hospitals in various parties of Sweden, which was to start on 19 May. Also on 30 April, the Swedish Electricians' Union (Elektrikerförbundet) gave notice of a strike by 5,000 members in the municipality/city council sectors. This was not officially declared as a sympathy action, but presented as a strike for better wages for the electricians, who are also in negotiations. However, the strike action in question was coordinated with Kommunal, and if the municipal workers reach a new deal soon, the electricians union will withdraw its notice.

The major conflict in the municipal and city council sectors is mainly explained by the fact that Kommunal represents mostly low-wage workers, with 80% of the members being women. The original 2001-4 pay agreement provided for an 11% wage increase over three years, an average of a little over 3.6% per year. The employers have so far agreed to Kommunal's call for a higher wage increase, but only for one (albeit important) group of low-paid workers in the union, those in healthcare. This group could, according to the employers' offer, receive an increase near that awarded to other workers in the sector, such as doctors and nurses. However, the rest of the workers would receive a worse deal than they would have if the original pay agreement had not been cancelled.