This winter it's time again. A new major wage round 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 economy is heading, how productivity and inflation are developing, to find a level for the wage mark. But for the export industry, international competition is essential. 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 is hardly news that employers want to slow 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, who believes that Swedish competitiveness has been strengthened.
So we see no reason to make extensive changes to our position based on the situation we are in now, he continues, without wanting to reveal what wage demands the union will put forward.
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 is 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 little. It was quite offensive 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.
Jakob Tellgren, CEO of Ikem, which represents the chemical industry, among other things, is a little more open to reducing working hours.
"It's resolved by mutual agreement between the different parties. Then you can't just continue this downward trend and pretend it doesn't matter how many hours you work," he says.
The latest industrial agreement, which has been almost copied by the rest of the labour market, is for 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.
