This winter it's time again. A new round of wage negotiations between unions and employers, where industry has historically taken the lead, will set the so-called wage mark for virtually everyone in the Swedish labour market.
To ensure the competitiveness of Swedish industry, we need to slow down the rate of wage increases going forward, says Per Hidesten, CEO of the Confederation of Swedish Industrial Employers, which represents Swedish heavy industry.
Currently, the annual wage increase rate is just over 3 percent (6.4 percent over two years) in the current agreement, which expires at the end of March 2027.
China the new threat
The unions usually look at where the Swedish economy is heading, how productivity and inflation are developing, to find a level for the wage mark. But for the export industry, it is international competition that is essential. The employers' organisations point out that China has grown stronger in a very short time and on a broad front.
So Swedish economic conditions and Swedish inflation are not relevant to us, says Hidesten.
It's hardly news that employers want to slow down wage increases, according to the union.
"Employers have always talked about how bad everything is before collective bargaining," says IF Metall's head of negotiations, Simon Petersson.
The head of negotiations for the white-collar union Unionen, Martin Wästfelt, adds that Swedish competitiveness is strong.
"We therefore do not share that view and do not see any need to slow down the rate of wage increases," he says in a written comment to TT.
Affects production
Industrial unions usually push the issue of reduced working hours, which employees have to pay for with lower wage increases.
But now that's all over, at least that's what Per Hidesten thinks.
I assess that we have come to the end of the road, as a starting point. We have come so far that we can no longer protect production.
“Surprises me”
Simon Petersson thinks the move on working hours was unexpected.
That surprises me a bit. It was quite aggressive of him to say that. There will be demands from IF Metall for reduced working hours and I expect that we will reach an agreement on that, he says, and he is supported by Unionen.
Jakob Tellgren, CEO of Ikem, which represents the chemical industry, among other things, is somewhat more open to reducing working hours.
"It's resolved by mutual agreement between the different parties. Then you can't just keep going down this road and pretend it doesn't matter how many hours you work," he says.
The previous industrial agreement, which has been almost copied by the rest of the labour market, is two years, April 2025-March 2027, and provides 6.4 percent in increased wage space, divided into 3.4 percent in year one and 3.0 percent in year two.
Some of the wage space was used in certain contractual areas to shorten working hours.
Around the turn of October/November, the unions in industry are expected to present their wage demands.
