Social partners are working on a revision of its labour market model.

The model has been under a certain amount of stress since 2007, when two major events occurred.

The ‘Swedish model’, a version of the Ghent system, is generally derived from the 1930s and gives social partners the main power over wage levels through collective agreements.

In 2007, discussions about the survival of the Swedish model began after the government raised fees to fund unemployment insurance funds. Then a preliminary ruling from the European Court of Justice in the landmark Laval case criticised the Swedish labour market model.

During the fourth quarter of 2014, the issue was addressed by both social partners and the Swedish government.

On 3 October 2014, the Confederation of Swedish Enterprise (SN) and the Swedish Federation of Trade Unions (LO) made a joint declaration and opened negotiations on a revision of the existing Swedish model. The strongest statement in the joint declaration is that social partners – and not politicians – should continue to be the key actors arranging working conditions on the Swedish labour market.

Discussions between SN and LO will look at issues including precarious employment, the adaptability of companies and strengthening the skills and competences of employees.

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