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Sweden’s Industrial Unions Negotiate 3% Pay Hikes for 540,000 Workers

9 January, 2012

Negotiations concluded in December between five Swedish unions, representing 540,000 industrial workers, and employers’ associations. The 14-month national agreements contain general 3% wage rises and run from next month, on 1 February, to 31 March 2013.

The sector-wide pacts cover industrial workers in paper, chemicals, wood, graphics, iron, steel, engineering, food, and other manufacturing workers. In coming months, talks in the Swedish federal and local governmental sectors, retail, retail food, commercial, construction, and transportation sectors will get underway.

The unions involved in late 2011 industrial talks include Pappers, IF Metall, Unionen, GS, the wood and graphics union, and the Swedish Food Workers’ Union (LIVS).

In general, the 3%, 14-month agreements represent fairness factoring in Sweden’s jump in GDP last year, and the fact that technology exports grew by 21%. Many of the agreements contain work groups and funds to establish further staff training and development.

IF Metall, representing some 170,000 workers in several sectors, approved agreements on 15 December, and Pappers did the same two days later. Unionen, representing 120,000 workers in many sectors, negotiated 0.2% on top of the 3% for professional development. The union represents white-collar, technical, engineering, administration, and other staff.

Pappers took a major step closer to a June deadline in finalizing industry-wide language banning all social dumping concerning agency and precarious work. The other unions also made strides in limiting and regulating temporary and short-term work.

Pappers also gained flexibility to allot 50% of the wage increase to the local level, with a set of criteria guiding local social dialogue in disbursing the funds, including promotions. The union and paper companies also agreed to press government over insufficient state aid for early intervention of occupational health risks, a force driving long-term illnesses.

IF Metall and employer groups agreed in principle to begin work on contract language halting termination of workers during an economic downturn and rather providing re-training opportunities within the enterprise.

IF Metall President Stefan Löfven said the agreements in his union’s sectors “provide opportunities for real wage increases in 2012 as well as maintaining the competiveness of Swedish industry.”

Unionen President Cecilia Fahlberg

Unionen President Cecilia Fahlberg said, “Each member is guaranteed a salary increase that allows for increased purchasing power.”