Sweden: two collective agreements in technology and design give priority to local wage negotiations

Unionen gives individual wage negotiations up. The sector’s employers’ organization, Almega STD, represents around 740 businesses in the construction and manufacturing sectors, i.e. 2/3 of architecture firms and technical advice businesses. On September 11, 2009, the union signed, with the Unionen federation (10,000 members in the sector), a collective wage agreement. The previous collective agreement was planned for two years and could be extended until 2010. However, given the extremely tense economic situation, the employers’ organizations decided to terminate the agreement and open new negotiations. For its part, Unionen refused to commit for two years because other collective agreements will have to be renegotiated in 2010 in different sectors. This new agreement, valid for one year and applicable from April 1, 2009 to march 31, 2010, provides for a global 2.3% wage increase, matching previous provisions and the market situation. However, the agreement gives local negotiations much room for maneuver, allowing for a lower increase than what is provided for in the collective agreement. In the absence of local agreements, the 2.3% increase will retroactively apply on April 1, 2009. For the first time, no individual wage guarantees are planned, whereas the Unionen confederation used to be very attached to them. Niklas Hjert, Unionen negotiator, said that they preferred provisions allowing employees and businesses to negotiate long-term increases and improve the individual right to developing skills, in a sector where personalities are perceived as the key to a company’s success. This agreement complies with recent statements from Cecilia Fahlberg, leader of Unionen, asking businesses to invest into training and “realistic and necessary” wage increases in spite of the crisis.