Working time is stumbling block in engineering talks

In early February 2001, bargaining over a new collective agreement for 380,000 workers in the Swedish engineering industry was suspended for a week. The main stumbling block in the talks is the employers' wish for greater working time flexibility, which the white-collar trade union SIF finds particularly problematic. Meanwhile, bargaining has been concluded in some sectors and continues in many others.

In early 2001, negotiations are underway over new sectoral collective agreements to replace the three-year deals signed in 1998 (SE9806190F). Bargaining has proved difficult in the important engineering sector and, after lengthy and intense talks, on 1 February a one-week suspension was called by the impartial mediators who are overseeing the bargaining process, in accordance with the 1997 cooperation agreement on bargaining procedures in industry (industrins samarbetsavtal) (SE9703110N). The negotiations involve the Association of Engineering Industries (Verkstadsindustrin, VI), plus three trade unions - the Swedish Metalworkers' Union (Svenska Metallindustriförbundet, Metall), the Association of Graduate Engineers (Civilingenjörsförbundet, CF) and the Swedish Union of Technical and Clerical Employees in Industry (Svenska Industritjänstemannaförbundet, SIF).

The bargaining parties in engineering issued their demands in late autumn 2000 (SE0010170N) and started to negotiate at the end of December. The sectoral collective agreement for the engineering industry is normally considered as the leading pay deal for the whole bargaining round. The engineering negotiators were expected to conclude a new collective agreement for about 380,000 employees on 24 January 2001, but the three unions, which cooperate in bargaining in this sector, turned down the impartial mediators' proposal, mainly because of the issue of working time. The VI employers' association wanted to trade greater freedom for employers to allocate working time for a three-day cut in annual working time introduced over a three-year period. The level of pay rise was reported not to be a problem in the talks. It was especially the white-collar workers' union SIF that was opposed to the employers' proposal, not wanting companies to be free to decide how working time was distributed over a one-year reference period.

On 31 January, the previous collective agreement expired. The parties were expected to be able to conclude a new deal on the same day but, after prolonging the deadline several times, on 1 February the impartial mediators announced the postponement of further talks until 8 February. The last offers made on 1 February were not made public and VI did not want to comment on the negotiations until they were over. However, the three unions stated their positions. Metall found the proposal acceptable in terms of both pay and working time, in the light of the new agreements reached in other industrial sectors. CF, despite being somewhat hesitant, was also prepared to sign the settlement offered. Only SIF was still against the latest proposal from the mediators, having difficulties in accepting the proposal that an average of 40 working hours could be distributed flexibly by employers in accordance with their needs. SIF also wanted an individual guarantee on pay rises.

By the beginning of February, three national sectoral collective agreements had been concluded in industrial sectors. On 16 January 2001, the Almega Industrial and Chemical Association (Almega Industri och Kemiförbundet) and the Industrial Union (Industrifacket) affiliated to the Swedish Trade Union Confederation (Landsorganisationen, LO) concluded a new deal for the chemicals sector. Blue-collar workers in the sector will receive a pay rise of 8,45% over 38 months, including a working time cut of one day per year (SE0101177N).

About one week later, new collective agreements were concluded for 27,000 blue-collar workers in the paper and pulp industry - by the Swedish Paper Workers' Union (Svenska Pappersindustriarbetareförbundet) and the Employers' Federation of Swedish Forest Industries (Sveriges Skogsindustriförbund) - and for 5,000 blue-collar workers in the steel industry - by Metall and the Almega Industrial and Chemical Association. The results of the negotiations were very similar to those in the chemicals industry - three-year agreements providing for a 8.5% pay rise and a three-day cut in annual working time introduced over a three-year period. SIF and CF are still negotiating over new agreements for white-collar workers and civil engineers in these three sectors, but there are differing opinions on certain working time issues, with SIF especially taking a negative view.

In 20 January 2001, the National Agency for Government Employers (Arbetsgivarverket), representing Sweden's 285 governmental authorities, exchanged demands with the trade unions representing 230,000 employees in this sector. The LO-affiliated Union of Service and Communication (Facket för service och kommunikation, SEKO), for example, is demanding a 3.8% pay rise over one year and a "genuine" growth in real wages. The employers are seeking agreements which provide for greater local freedom in wage setting. The parties in the local government and city council sectors have also exchanged demands. Furthermore, the Doctors' Union (Läkarförbundet), which is excluded from the central negotiations in the city council sector and deals directly with the employers, has demanded enhanced pay development, a better work environment and improved pension provision for its 35,000 members.

Finally, the employers and trade unions in the private commerce sector have exchanged demands and plan to start negotiations later in February. The 2001 bargaining round is thus very much in progress and there are hopes of completing it by 31 March 2001, the date when many of the 1998 agreements expire.