Power station collective agreement reached following strike

In December 2005, the social partners in the Swedish power station industry concluded a new collective agreement, following lengthy negotiations, mediation, and strike and sympathy actions. They key issue in dispute was the right of the Swedish Electricians’ Union (SEF) to take industrial action against new firms entering the industry.

After about three months of negotiations, bargaining over a new collective agreement for power station workers between the Energy Employers’ Association (Energiföretagarnas Arbetsgivarförening, EFA) and the Swedish Electricians’ Union (Svenska Elektrikerförbundet, SEF) broke down on 11 November 2005. The major stumbling block was not pay, but acceptance of a joint recommendation to their member organisations agreed by the Swedish Confederation of Trade Unions (Landsorganisationen, LO) and the Confederation of Swedish Enterprise (Svenskt Näringsliv) on 30 August 2005 (SE0509102F). This recommendation concerns the employment conditions that should apply to foreign companies operating in Sweden and bringing their own workers with them. It includes a provision that such foreign employers may take out temporary membership (for up to one year) in the relevant sectoral employers' association - EFA, in the case of the power industry. The recommendations were to be implemented in collective agreements in the whole private sector by 31 October 2005, and most LO-affiliated trade unions and member employers' associations of the Confederation of Swedish Enterprise did so during autumn 2005.

The LO/Confederation of Swedish Enterprise recommendation builds on the principle that foreign workers should have the same pay and other employment conditions as Swedish private sector workers in the same industry.

The LO/Confederation of Swedish Enterprise recommendation provides for a 'peace clause' in sectoral agreements that prevents trade unions from taking conflict actions against newly-established foreign companies during initial negotiations between the local social partners, in order to allow the new member company of the employers' association to become established. In the previous sectoral collective agreement for power stations, SEF was granted a right to take conflict action aimed at initiating negotiations with new companies, both Swedish and foreign. During the mediation process leading to the conclusion of this agreement, the mediators argued that it would be discriminatory if the union's right to take industrial action did not apply to both Swedish and foreign employers. EFA accepted the provision giving the union a right to to take conflict action aimed at initiating negotiations with all new companies as a preliminary solution, while awaiting a broader resolution of the issue by LO and the Confederation of Swedish Enterprise.

Industrial action and deal

The former pay agreement in the power station sector was cancelled by SEF on 23 November 2005. The union made it clear that it did not want to apply the LO/Confederation of Swedish Enterprise recommendation to the collective agreement for the power station industry (Kraftverksavtalet).

On 25 November, SEF gave notice of industrial action - a strike involving 100 power station workers, an overtime ban and a boycott of of EFA jobs - starting on 7 December. At the same time, SEF the union gave notice of sympathy action against the members of the Swedish Electric Contractors Association (Elektriska Installatörsorganisationen, EIO), the employers' association for electrical installation companies. A new, wider-ranging notice of industrial action against EFA was given by SEF on 2 December, along with additional sympathy action against EIO to start on 15 December.

On 4 December, the state mediators began work. They made a proposal for a deal on 8 December, which was turned down by SEF. A second and final proposal issued on 11 December was accepted by both parties. The strike and sympathy actions, which had been postponed by the mediators for two days, lasted from 9 to 11 December. In the final deal, the LO/Confederation of Swedish Enterprise recommendation was fully accepted by the social partners, with no exceptions. Regarding the issue of the peace clause during initial negotiations, it has been agreed that conflict actions must not be taken against foreign employers newly joining EFA (or any other Swedish employers' association affiliated to the Confederation of Swedish Enterprise).

With regard to new Swedish firms applying for membership of EFA, a new rule has been agreed in place of the temporary rule in the old sectoral agreement. Employers that were previously not bound by the power station industry agreement but now join EFA shall, if the union demands it, hold special negotiations with SEF. In these negotiations, it should be established how the sectoral agreement will be applied in the company concerned. If the union and the company do not agree on wage-setting principles, the pay level at the company should be the same as in the other companies falling under the power station agreement. Official wage statistics gathered at the regional level should act as the norm in establishing the pay level.

The 'ordinary' national rules on peace clauses and conflict actions apply as usual to all employers, both Swedish and foreign, with permanent memberships of the Confederation of Swedish Enterprise and its affiliates, as well as to trade unions. A key rule is that there should be a ban on conflict actions during the period of validity of a collective agreement.

The new power station agreement is valid from 1 October 2005 to 31 October 2006, with possibilities for prolongation one year at a time. The pay rise for the initial period is set at 2.3% (which is in line with most other current private sector agreements).

Commentary

After the power industry conflict was over, the EFA employers' organisation and the National Mediation Office (Medlingsinstitutet) expressed the view that it had been unnecessary, and that the perceived problems could have been solved in the negotiations. This was denied by SEF and LO. The Confederation of Swedish Enterprise and its affiliates find the Swedish industrial conflict rules old-fashioned, unbalanced and disproportionate, and are campaigning for a change in these rules (SE0507101N). SEF is one of the most active trade unions in using industrial action and sympathy action as weapons in collective bargaining (SE0308101N and SE0406104F). (Annika Berg, Arbetslivsinstitutet)