What do you know about the Swedish labour market model?
Graphics: Björn Hellström/Polygraf Media.
When asked what is typically Swedish, many would most likely answer fermented herring and Midsummer celebration. But there is something else that influences several million people in Sweden every day. It is called the Swedish model.
Most regulations related to employment, salary and benefits in Sweden are not regulated in law. The laws have been replaced by collective agreements and this is called the Swedish labour market model.
This is a revised web version of an article in a special print edition of Ingenjören. This article is on pages 50-51. Here you can read the entire printed magazine.
No political interference
According to the Swedish model, politicians give way for trade unions and employers to agree on the terms and conditions for the Swedish labour market. Politicians are at an arm’s length.
The Swedish model prevents strike actions
As long as collective agreements are in place, trade unions can’t take strike actions. That is called peace obligation. Trade unions can take strike actions when the agreement has expired, and a new one has not been agreed upon.
The Swedish model is advantageous for employees and employers alike. Employers are granted good terms and benefits in exchange for refraining from strike action. This is where Sweden sets itself apart compared to other countries.
During the years 2010 – 2021, Sweden lost an average of 8 100 working days due to conflicts in the labour market. During the same period, Denmark lost
110 300 days a year, Finland 122 300 days a year and Norway lost 126 500 days a year.
Agreement layer cake
Legal rules and regulations – a stable sponge
Legal regulations sometimes define a minimum level and sometimes they are just a framework. One example is the annual leave act that grants employees a minimum of 25 annual holiday days. Many regulations are semi dispositive, meaning that they give some scope for parties to deviate from some of the provisions in the law.
More example for labour market laws:
- The Employment Protection Act
- Co-determination Act
- Parental Leave Act
- Working Hours Act
Central collective agreements – the filling
Trade unions and employers agree on central collective agreements which are branch-specific. For graduate engineers, there are agreements for the goods-producing industry, consultant agencies, energy sector, municipalities, regions and governmental agencies. And many more.
Collective Agreements stipulate among others:
- Working hours
- Notice period
- Occupational pension
- Salary-setting principles
Local collective agreements – the icing
Local trade union councils can agree with the employer on local agreements on benefits in the workplace. This can be, for example, the possibility to save more holiday days compared to the central agreement.
Individual agreement – The cherry on the top
Every employee agrees on an individual agreement, the employment agreement. Normally this contains only the salary but it is possible to agree on additional individual conditions, for example salary exchange for higher pensions contributions.
Let’s unite
The Swedish model only works if enough employees are member of a trade union. If you join, Engineers of Sweden gain more strength at the negotiation table. You can as well become local trade union representative at your workplace. Together, we can improve the terms and benefits on the labour market.
