Collective agreements in Sweden are written contracts negotiated between trade unions and employers, determining wages, working hours, and other employment conditions for employees. These agreements play a foundational role in Swedish labor relations and have a historical significance that dates back more than a century. But is it necessary, as an employer, to have a collective agreement?
− (SV) Employers' organisations and trade unions that negotiate collective agreements are good at highlighting the benefits of the party model. Then it is easy to forget that they
donot speak for the entire labour market, says Lise-Lotte Argulander, Företagarna's expert on labour law.
There are many myths about collective agreements that reinforce the image that the companies that have not signed them do so for reasons that must be suspect. In fact, collective agreements are poorly adapted to the everyday lives of smaller companies and often lack sufficient flexibility.
Let's take a closer look at five myths about collective bargaining.
Myth 1. Collective agreements are proof that the company is serious
Not true. There is no guarantee that a company is serious in the roleof employer or in a broader sense conducts its business in a serious way, just because it has signed a collective agreement. Rogue entrepreneurs are rogue precisely because they do not follow laws and regulations. There are just as good cabbage drinkers among those who have collective agreements as among those who do not, says Lise-Lotte Argulander. At the same time, it is important to remember that the vast majority of companies – with or without collective agreements – are serious companies.
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Myth 2. Companies with collective agreements have better employment conditions
Not true. The vast majority of companies have as good conditions as they can afford. This applies to both salary and other terms of employment. The smallest companies may find it difficult to pay for provisions for occupational pensions and insurance, but then it is not a question of giving employees worse conditions than the entrepreneur himself has. According to Lise-Lotte Argulander, however, the vast majority of companies that have been in operation for a while and have at least a handful of employees have at least as good conditions in terms of occupational pension and insurance as larger companies that have signed collective agreements where such are included in the agreement.
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Myth 3. Companies with collective agreements provide more secure employment
Not true. The Employment Protection Act, LAS, is semi-dispositive. This means that parts of it can be waived via individual agreements or through collective agreements. This may involve, for example, having shorter notice periods, more flexible working hours than the law stipulates and agreeing on other things that make it easier for the employer to have greater flexibility in employment relationships than the legislation allows. For example, several collective agreements contain intermittent forms of employment, such as "extra when needed". This means that the employer can call in people on short shifts of a few hours or single days when the business so requires, in LAS this form of employment does not exist. It is good that it exists and it is needed, but you rarely hear representatives of the union talk about the disadvantages of it, says Lise-Lotte Argulander.
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Myth 4. Collective agreements are always best for workers
Not true. As in all labour market negotiations, the employer side gains certain advantages, the employees others. Collective agreements involve deviations from legislation, which often makes employment conditions more flexible for the employer. Take, for example, the Working Hours Act. It is quite strict. According to it, working hours should be calculated as an average over a four-week period, but in some collective agreements the period has been extended to more than twenty weeks, to give the employer the necessary flexibility in scheduling," says Lise-Lotte Argulander. The Working Hours Act also contains a ban on night work, which is negotiated away in many collective agreements.
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Myth 5. Collective agreements create predictable conditions for everyone
Not true. Collective agreements are secret. It is therefore not possible to stand outside the party model and ask to know what is in them. The answer is that the company must sign the agreement in order to access the fine print content," says Lise-Lotte Argulander.
We have been given permission to use this article and publish it in English, as it is of great information to our english speaking readers. You can read the original post here www.foretagarna.se
