Government backs down on expected working time reduction legislation

The Swedish government had been widely expected to propose a bill on the reduction of working time in the near future. However, it announced at the end of October 2000 that possible legislation on this issue would not now be considered until 2003. The minority Social Democrat government had not received the support on this issue of both of the parties with which it cooperates in parliament, the Left Party and the Green Party, and did not want to risk endangering its cooperation with either of them.

In September 2000, Sweden's main trade union confederations - the Swedish Trade Union Confederation (Landsorganisationen, LO), the Swedish Confederation of Professional Employees (Tjänstemännens Centralorganisation, TCO) and the Swedish Confederation of Professional Associations (Sveriges Akademikers Centralorganisation, SACO) - presented a joint proposal for a reduction in working time. The confederations proposed that there should be five fewer working days per year, to be implemented progressively by cutting one day per year over five years, starting from 2001. The five extra days off could be taken as half days or even hours. Another proposal was that only 100 hours' overtime work should be allowed per year.

At this stage, most trade unions considered that - after more than 15 years of discussions, a number of investigations (SE9812126F) and a thorough report in March 2000 from a parliamentary group (SE0004139F) - a government bill on a cut in working time was soon to be proposed. In late October 2000, the minority Social Democratic Party (Socialdemokratiska Arbetarepartiet, SAP) government announced that it was ready to propose a bill which follow the main lines of the trade union confederations' proposal, but only if an agreement could be reached with the two other parties with which it has cooperated since its election in 1998 (SE9810116N). The Green Party (Miljöpartiet de Gröna) had stated earlier in the autumn that it wanted a greater working time cut of, in the long run, 10 hours a week, ultimately leading to a 30-hour week. The Left Party (Vänsterpartiet) shared this opinion, but had announced earlier in October that it would compromise on this point and agree with the government. The Green Party, however, refused to make any compromises, hoping to create a situation where it could push its views on working time reduction more strongly in future.

Another commission

On 31 October 2000, the three parties announced that they had agreed a common basis to start cuts in working time from 2003 (the next general election is in 2002). A parliamentary commission, including representatives from the social partners, will soon be appointed. This commission will examine the current legislation that governs rights to annual leave, parental leave and study leave, and present a proposal in autumn 2001 on increasing the influence of workers concerning the timing and other aspects of leave, and on greater flexibility for employers. The commission should also examine what forms a future working time reduction might take, and how it could be implemented. The ambition of the Social Democrats is still that a working time reduction like that proposed in September 2000 by the three union confederations should be carried out.

Disappointment

The trade unions' reaction to the failure to propose a bill and the creation of another commission was one of disappointment and annoyance that the issue of working time reduction seems destined never to be resolved. By contrast, the employers seem quite satisfied with developments. The Swedish Employers' Association (Svenska Arbetsgivareföreningen, SAF) has again reiterated its view that, given a choice, it would much prefer that the working time issue be dealt with in collective bargaining rather than by law. Employees could, for example, trade off a cut in working time against a pay increase, SAF has suggested in earlier discussions.

A new bargaining round has just started to renew the three-year sectoral collective agreements on pay and general conditions signed in 1998 (SE0010170N). The trade unions have already raised the threat that the unresolved working time issue might possibly complicate the negotiations, but without being specific.

The parliamentary working group - made up of Social Democratic, Green and Left Party representatives - that presented its report in March 2000 did not make a proposal of its own, as that was not its role. However, the group did present three possible ways of cutting working time: through collective agreements; through changing the current legal norm, which may be varied by collective agreements, of 40 hours per week; or through compulsory legislation, with no option of deviations through agreements between the social partners. The government clearly regarded collective bargaining as the best way forward.

Commentary

The government's decision not to propose new working time legislation was due primarily to political reasons. The joint initiative of the three trade union confederations to propose a resolution to this long-running issue was a rare example of cooperation and a serious demonstration of their concern - something realised by the government, which was at first prepared to incorporate their proposal into a bill. Despite the lack of support from the Greens, the government could then have taken a chance with the bill in parliament, where the Social Democrats would very possibly have been given support by one or two opposition parties. However, the government seems to have calculated that by disregarding one of the parties with which it cooperates, it would have endangered such cooperation for the rest of its term until the next election in autumn 2002. This would have threatened, for example, parliamentary decisions in late 2000 on the national budget for 2001 and other important issues.

It is hard to tell what is now going to happen to the working time issue. The plan is first for a new investigation, then possibly a bill in late autumn 2002 - assuming that the Social Democrats are successful in the elections in September 2002. Labour market developments will be crucial - if the current economic growth turns into a recession or if labour shortages in some branches intensify, then the issue of a possible cut in working time will become more complicated. For the time being, it remains to be seen if the unresolved working time reduction issue leads to complications in the bargaining round which starts in November/December 2000. (Annika Berg, Arbetslivsinstitutet)