It's time to lower working hours for everyone in Sweden because we can simply afford it, says LO's chairman Johan Lindholm.
The trade union organization presented its investigation into the price tag for a shorter working week on Monday. According to LO, reducing working hours to 35 hours a week would cost 1.7-3.1 percent of GDP, approximately 100-180 billion kronor. This corresponds to one to two years of GDP growth in Sweden.
The analysis assumes that the monthly salary will remain the same with shorter working hours. Therefore, the cost would be distributed among lower wage increases in the future, higher prices for goods and services, and lower profits for companies.
Costs more?
According to Svenskt Näringsliv's calculations, it would cost significantly more to reduce working week to 35 hours. LO's economists believe that this is because LO has gone through more studies than the employers' side and that these studies show a lower production loss. LO assumes that a 10 percent reduction in working hours would reduce production by 4.2 percent. This is because employees are assumed to become more productive due to more time for rest.
Teknikföretagens negotiating chief Tomas Undin warns that a shorter working week would impair Sweden's competitiveness.
"Many companies would be forced to leave Sweden if they are forced to reduce working hours. We do not believe that the general public agrees that Sweden can afford it," he says in a written comment.
"Holding the reins"
LO's congress decided last year, after some internal disputes, to drive the issue of shorter working hours in future collective bargaining, not through legislation.
The idea is that the different LO unions will discuss a common negotiating form and strategies this autumn. It is not clear how much shorter working hours they will aim for.
The Social Democrats' party executive supports the line of going through negotiations, but at the S-congress later this week, there are many motions to legislate for shorter working hours.
It's LO that's holding the reins. We'll solve this through negotiations.
But it's good that the political parties support what we're doing.
