Collective Agreements in Sweden

Collective agreements in Sweden, who make them and why: 

In Sweden, collective agreements are primarily negotiated between trade unions, representing the workers, and employers' organizations, representing the businesses. The negotiation process is part of what is often referred to as the "Swedish model" of industrial relations, characterized by a high level of cooperation between employers, trade unions, and the government. 

Here's a brief overview of how the process typically works: 

• Negotiations Start: When a current collective agreement is due to expire, negotiations for a new agreement start. This usually begins several months before the expiry of the current agreement. The union and the employer's organization each present their proposals for the new agreement. 

• Bargaining: The two sides then enter into bargaining discussions. These discussions can take place at a national level (for large, sector-wide agreements), or at a company level (for smaller, local agreements). The aim is to reach an agreement that is acceptable to both parties. 

• Agreement Reached: Once an agreement is reached, it is written up into a formal document and signed by both parties. This document becomes the new collective agreement. 

• Enforcement: Once the agreement is in place, both sides are legally bound to adhere to its terms. If either side violates the agreement, the other side can take them to a labor court.

   

Some of the main trade union confederations in Sweden include LO (The Swedish Trade Union Confederation), TCO (The Swedish Confederation of Professional Employees), and SACO (The Swedish Confederation of Professional Associations). Major employers' organizations include the Confederation of Swedish Enterprise (Svenskt Näringsliv) and Almega. 

Collective agreements in Sweden cover a wide range of topics, including wages, working hours, vacation time, maternity and paternity leave, sick leave, and many other aspects of employment. They play a crucial role in defining the terms and conditions of employment for a significant portion of the Swedish workforce. 

Why should a company have a collective agreement? 

 Working with a collective agreement in Sweden offers several benefits to companies. Here are a few reasons: 

• Stability and Predictability: Collective agreements provide a stable and predictable framework for both employers and employees. They set clear guidelines for wages, working hours, vacation time, and other terms of employment, which reduces uncertainty and can improve long-term planning. 

• Conflict Reduction: Collective agreements can help reduce labour disputes by providing clear rules and procedures for resolving conflicts. If disagreements arise, the agreement outlines the steps for mediation and resolution, which can prevent conflicts from escalating and disrupting business operations. 

• Fairness and Equity: Collective agreements can help ensure fair treatment of employees by setting standard terms and conditions of employment. This can help maintain a positive work environment, increase employee satisfaction, and reduce turnover.

• Compliance with Labor Laws: In Sweden, labour laws strongly encourage collective bargaining, and many legal protections for workers are implemented through collective agreements. Working with a collective agreement can help ensure that a company is in compliance with Swedish labour laws. 

• Competitive Edge: Companies that adhere to collective agreements can market themselves as good employers, which can give them a competitive edge in attracting and retaining skilled employees. 

• Representing Employers' Interests: Being a member of an employers' organization, which negotiates collective agreements on behalf of businesses, allows companies to have a say in the negotiation process, and ensure their interests and concerns are taken into account. 

• Access to Dispute Resolution: Collective agreements typically provide access to arbitration in the event of a dispute between a worker and employer. This can be a more efficient and cost-effective way to resolve disputes than going to court. 

Overall, adhering to a collective agreement can contribute to a positive and productive working environment, which in turn can support the overall success of a business. 

How do you know what collective agreement you should work by in Sweden? 

To determine which collective agreement applies to your company in Sweden, you can follow these steps: 

• Identify Your Industry: Different industries often have different collective agreements. For example, manufacturing companies may have different agreements than companies in the service sector. 

• Check with Your Employers' Organization: If your company is a member of an employers' organization, this organization should be able to tell you which collective agreement applies to your company. In Sweden, many employers' organizations negotiate collective agreements on behalf of their members. 

• Check with Relevant Trade Unions: If your employees are members of a trade union, the union should also be able to provide information on the applicable collective agreement. 

• Refer to Your Company's HR Department or Legal Counsel: If your company has a Human Resources department or in-house legal counsel, they should also be familiar with the applicable collective agreement. 

• Seek Legal Advice: If you're still uncertain, you may want to seek legal advice. A lawyer specializing in labour law should be able to help you determine which collective agreement applies to your company. 

• Online Resources: The Swedish government or certain industry bodies may have online resources that can help you determine the correct collective agreement. However, the most reliable sources are likely to be the employers' organization or trade unions relevant to your company. 

Useful link: Labour market in Sweden

Remember, collective agreements in Sweden are legally binding and provide the foundation for many of the terms and conditions of employment in your company. It's important to know which agreement applies to your company and to ensure that your company is in compliance with it.