Engineering employers withdraw from agreement on suggestion schemes

In February 1999, the Association of Swedish Engineering Industries (VI) withdrew from a collective agreement on suggestion schemes between itself and four trade unions. The employers consider that the agreement causes too many disputes and would prefer local agreements in the future.

On 10 February 1999, the Association of Swedish Engineering Industries (Sveriges Verkstadsindustrier, VI) withdrew from the collective agreement on suggestion schemes between itself and four trade unions, which originally came into force in 1987. The agreement was signed by all the parties in the engineering industry, VI on the employers' side and, on the union side, the Swedish Metalworkers' Union (Svenska Metallindustriarbetareförbundet, Metall), the Union for Technical and Clerical Employees in Industry (Svenska Industritjänstemannaförbundet, SIF), the Association of Graduate Engineers (Sveriges Civilingenjörsförbund, CIF) and the Association of Management and Professional Staff (Ledarna).

The purpose of the agreement was to encourage workers to collaborate and contribute to a favourable climate in the workplace. According to the rules in the agreement, a worker who came up with an invention or had any ideas which were of value for the company could be paid a special sum. The size of the sum was dependent on how the suggestion affected his or her job. If the suggestion involved an entirely different way of working for the worker who came up with the suggestion, then he or she would be paid in full for the idea. However, for an idea which represented only a marginal improvement within existing ways of working, there would be no payment at all. There was also provision for some kind of payment for ideas which fell between the two extremes. In cases where full compensation was paid for the idea or suggestion the level of payment would be based upon half of the benefits accruing to the company in the first year (SE9710148N).

However, VI claims that the situation in the engineering industry has changed. Enterprises now have a flat and flexible organisation and the employees work in teams. It is harder to differentiate between different tasks and different workers. VI has also stated in a note to the trade unions that the experience of the agreement, instead of being beneficial to companies, has instead resulted in conflict. In several cases, there has been a difference of opinion as to whom should be paid for a suggestion, and how much. The agreement, according to VI, has become a source of irritation.

The current agreement on suggestion schemes is operative until 30 April 1999. VI has offered to negotiate a new agreement on suggestions, but this would contain only "recommendations for local agreements".

Jöran Tjernell, director of CIF, stated that he regretted the fact that VI does not fully appreciate the suggestions and ideas of the employees. Nevertheless, CIF and the other unions are willing to start talks about a new recommendation agreement, which VI suggests should replace the existing agreement. The talks had not yet started in late February.