Two paper workers share SEK 3.75 million reward for suggestion to improve production

In September 1997, two Swedish paper workers were awarded SEK 3.75 million, the largest award ever in the industry, for an idea which improved the production process and increased the volume of production. The award was based on the paper sector's collective agreement on suggestion schemes.

After long drawn-out negotiations, the AssiDomän paper company in Karlsborg in southern Sweden has agreed to pay two of its workers, Sture Grahn andPeter Carlsson, a shared award of SEK 3.75 million for an idea that improved the production process. This is the largest award ever paid for a suggestion in the industry.

The two workers had invented a method for reducing the flow of water in the evaporation process for the production of pulp, and they had presented their idea to the employer at the beginning of 1994. When the suggestion was realised, it allowed the paper mill to increase its production, and the company did not have to carry out its plans of reorganising the evaporation process.

According to the collective agreement on suggestion schemes between the Paper Workers' Union (Pappersindustriarbetareförbundet) and the Employers' Federation of Swedish Forest Industries (Skogsindustriförbundet), workers whose suggestions are realised are entitled to 50% of the first year's profit increase. In special circumstances, however, this sum can be adjusted.

In the present case, the employer and the trade union could not agree on the level of the profit increase as a result of the improvements suggested by the two workers. According to the union it was SEK 24 million, while the employer maintained that it was only SEK 14 million. They also disagreed on by how much the reward should be adjusted. In order to avoid the uncertainty of an arbitration board decision, both parties eventually agreed the final settlement on 17 September 1997.

Mr Grahn and Mr Carlsson both plan to take some leave and continue their studies to become engineers.