44-month agreement signed for textile and clothing industry

In March 1998, employers and trade unions in Sweden's textile and clothing industry concluded a collective agreement to run for 44 months. It awards blue-collar workers in this low-paid sector higher percentage increases this year than their counterparts in other sectors.

On 11 March 1998, the Swedish Textile and Clothing Industries' Association (TEKOindustrierna, TEKO) and the Industrial Union (Industrifacket) accepted a draft collective agreement proposed by three impartial chairs who had led the final phase of negotiations. The agreement, which covers around 7,500 blue-collar workers, will run for an extraordinarily long period of 44 months. The parties can, however, renegotiate it after it has run for two years.

Since the textile and clothing industry is a pronounced low-wage sector, the trade union claimed that its members should receive higher percentage increases than their counterparts in other sectors. According to a spokesperson for the union, this aim was achieved. As from 1 March 1998, an amount equal to 3.7% of total paybill is to be distributed through company-level negotiations, which corresponds to an increase of SEK 534 per month for the average worker. As from 1 November 1999, another "pot" of 2.9% of paybill will be allocated, and finally a further 1.1% as from 1 February 2001.

The agreement also provides for a three-step reduction in weekly working time of 36 minutes. If all workers concerned agree, the local trade union branch can trade part or whole of this working time reduction for additional increases in pay.