First collective agreement for blue-collar workers in temporary agencies

In May 1997, the Swedish Transport Workers' Union became the first blue-collar trade union to conclude a collective agreement for workers employed by temporary employment agencies. The agencies have undertaken to pay these workers at least half pay each month, based on the average wage of the company where they perform their work.

On 30 May 1997 the Swedish Transport Workers' Union and the Swedish Service Employers' Association concluded the first collective agreement on wages and general terms of employment for blue-collar workers employed by temporary employment agencies.

Temporary employment agencies are firms that have employees, but no production of their own. Their business is to hire out their staff to other employers, which need extra personnel for a limited period. Private employment agencies were not permitted in Sweden until 1991, and between 1991 and 1993 they could only work if they had an authorisation from the National Labour Market Board. Their activities were also restricted in other ways. Since these restrictions were repealed, the sector has grown rapidly.

Primarily, the temporary employment agencies supply their customers with clerical and financial staff. Thus the Salaried Employees' Union (Tjänstemannaförbundet HTF) has had a collective agreement for these firms for some time.

The fresh agreement is a consequence of an increase in the hiring-out of blue-collar workers, and covers workers at transport terminals. On the whole, it guarantees workers the same terms of employment as those who are employed directly by transport companies. The important exception is that those who are employed by the employment agencies do not know from month to month how much work, and thereby what income, they will have. However, the companies so far bound by the agreement have undertaken to pay them at least half pay each month. Their pay will always be based on the average wage of the company where they perform their work.