Sweden: employee representation on the Board of Directors is an underutilized prerogative

Unions have this right but they don’t use it.  This is how the message from the PTK (Swedish Federation of Salaried Employees in Industry and Services grouping 25 unions) and Styrelseakademien (a non-profit organization working for improved functioning of the Board of Directors in Swedish companies) report can be encapsulated. It showed that 3 out of 4 seats on the Boards of Directors reserved for employee representatives are not taken up. A worrisome finding insofar as it reflects a lack of understanding and a lack of training as to employee representation rights which are themselves an important element in the Swedish model.
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The findings. The law on employee representation on the Board of Directors (1987:1245) entitles employees of a company that has employed an average of not less than 25 employees to two representatives on the board of directors (board representatives) and one alternate for each suchmember. This rises to 3 representatives and one alternate for companies with 1,000 employees. If fully taken up this would give between 40,000 and 50,000 Swedish board seats yet most of them remain vacant and is...

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