Construction agreement follows 3% pay increase norm

A new collective agreement for the construction sector was concluded in October 1999 between the Swedish Construction Federation and the Building Workers' Union. The agreement follows the current norm in Swedish collective agreements of a 3% pay rise.

A pay agreement for 60,000 building workers was concluded on 11 October 1999 by the employers' organisation, the Swedish Construction Federation (Byggentreprenörerna), and the Building Workers' Union (Svenska Byggnadsarbetareförbundet, Byggnads). The agreement provides for a pay rise of 3%, which is the current norm among most Swedish pay agreements expiring on 31 March 2001. The new construction agreement will expire on the same date and is hence valid for 18 months.

For the first time in many years, the construction agreement was concluded without conflicts or notices of industrial action. The most complicated issues in the negotiations were working time, premia for working on holidays and the distribution of pay rises. The problems were, however, satisfactorily resolved in the view of both parties. A special holiday premium will now be paid to employees working on New Year's Eve and on Midsummer Eve (in June). The employers' demand for more flexible working hours was partly accepted. The earliest possible starting and finishing times for workers covered by flexitime will be brought forward by half an hour in the morning and put back by half an hour in the evening, so normal working time will now be in the hours between 06.00 and 17.30. The new agreement gives a possibility for the local parties to negotiate directly at the workplace on the arrangement of working hours. The parties also agreed on extra pay increases for building-site cleaners, a traditional low wage group among building workers. The cleaners will receive an extra pay rise of 2% or SEK 2 more per hour, on top of the general 3% rise.