Engineering agreements provide for reduction in working time

In March 1998, collective agreements were reached for workers in Sweden's largest industrial sector, the engineering industry. The settlement provides for a reduction of 30 minutes in weekly working time. The parties at company level are authorised in principle to agree on deviations from the central agreements in order to harmonise terms and conditions of employment for blue- and white-collar workers.

On 8 March 1998, the Association of Swedish Engineering Industries (Sveriges Verkstadsindustrier, VI), the Swedish Metal Workers' Union (Svenska Metallindustriarbetareförbundet, Metall), the Swedish Union for Technical and Clerical Employees in Industry (Svenska Industritjänstemannaförbundet,SIF) and the Association of Graduate Engineers (Sveriges Civilingenjörsförbund, CF) accepted draft collective agreements drawn up by two impartial chairs who had led the final phase of negotiations for around 320,000 employees in the engineering industry. The agreements with each of the three unions run for 35 months, that is until 31 January 2001, although they may be renegotiated for the final 15-month period.

The blue-collar workers represented by Metall are to be awarded a pay increase equal to 2.6% of the total paybill from 1 March 1998, to be allocated through company-level negotiations. From 1 November 1999, another 2.3% will be allocated in the same way. No-one will receive a monthly pay increase of less than SEK 500 in total during the period of the agreement. The percentage increases in the agreements for the white-collar workers represented by SIF and CF are slightly smaller.

Blue-collar day workers will have their working time reduced by 30 minutes per week and shiftworkers by 36 minutes. The organisation of working time will normally be negotiated by the employer and the company trade union branch, but if they are unable to arrive at an agreement there are standard rules set out in the central agreement. However, in return for agreeing to reduce working time, the employers now have the right to deviate from the standard rules by 24 minutes per day. In addition, they are authorised to make agreements with individual workers on the organisation of working time.

According to the agreements, working time reduction is left entirely to the local parties. They may agree on a similar reduction to that agreed by VI and Metall, but they may well decide to increase pay by an additional 0.6% instead.

The parties at company level are authorised in principle to agree on deviations from the central agreements in order to harmonise terms and conditions of employment for blue- and white-collar workers. Such local agreements, however, need the approval of the central organisations in order to be valid.

For the first time, Metall has also recommended acceptance of a reduced introductory wage for workers under the age of 21 during the first year of employment, provided that they are given some kind of training or induction programme during that period.

Another novel feature of the Metall agreement is that workers cohabiting with a partner are entitled to leave of absence for family reasons whether they are married or not. This applies to both heterosexual and homosexual relationships.

The overall settlement also includes a special agreement on competence development. It states that all employees should have the opportunity to develop so that they are able to take on more qualified and demanding tasks. Special attention should be paid to workers with special educational needs who require more intensive training to carry out company tasks.