Sweden: differing views on the country’s economic situation are influencing the 2017 negotiations

Unions and employers bodies agree that Sweden needs more flexibility in order to attract investors. Yet is this common declaration enough to come to a real agreement? On 21 December 2016 respective negotiation demands were exchanged between the employers body representing roughly 4,000 technology sector companies Teknikföretagen and the unions bodies Unionen (private sector), Sverigesingenjörer (engineers), and If Metall (metal workers), which as well as being prime exporting sectors also set the tone for all subsequent sector negotiations. The core issue centers on acknowledging businesses competitiveness, which will then determine the level of pay rises, and potentially justify specific employers’ demands for productivity improvements.
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‘Classic’ union demands. “There is light at the end of the tunnel and we see 2017 as starting off with a positive outlook,” Nicole Bångstad, economist at Swedbank announced in the Svenska Dagbladet publication, and which was confirmed by Business Sweden’s latest study predicting a rise in Swedish export numbers despite an uncertain international situation. The unions are calling these forecasts optimistic so as to support their own demands. If Metall, Unionen, and Sveriges Ingenjörer...

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