MG316 TOPIC: INDUSTRIAL RELATIONS AND EMPLOYMENT RELATIONS IN SWEDEN 1.

Background Industrialisation- started late- In early 1900-it was a poor agricultural country. 100 years later than UK it is a wealthy country-it has a good social welfare system. Population - 8.8 M and 4.3 m in labour force- 75% women in LF- highest in OECD countries Workforce - 2% in agriculture, 25 % in industries, 73 % in service sector. 2. Trade Union Movement Origins- in the early 1880s- 1st unions were -'craft unions' but by 1910'industrial unions' became dominant. 2. 1881-1930- mainly blue collar unions, but after 1930s- growth of white-collar unions3. No need for unions to 'register'- South Pacific- need to.- but only unions with contracts with employers have right to access to company books. 4. Very few 'new unions' most are old unions- little change. TUCs- 3 main TUCs-1 for blue collar workers and 2 for public sector unions
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3. TUCs-

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1898- Swedish Trade Union Confederation (LO) formed 16 'industrial' unions affiliated -2 million members- represents Blue -Collar unions. Eg 2 big unions are Municipal Worker's Union and Metal Workers Union covers 90% of Blue -Collar unions-very high density LO is and most influential TUC Previously LO did the CB on behalf of its members major1944- TCO (Swedish Confederation of Salaried Employees)- largely for white collar unions - only strong in Civil Service -18 unions affiliated -1.2 million members- 2 big unions are Swedish Union It does not take part in CB SACO (Swedish Confederation of Professional Association)- members who are graduates

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4. Employers Organisations

4 organisations- 1 for private sector and 3 for public sector 1. SAF - (Swedish Employers Fed)- private sector - 41,000 companies2.

SAV - (Swedish Agency for Govt Employers) - Fed for national govt - The state is the large employer- pay is set by Private sector, but public sector is always

behind in most countries- export country so overseas competition has impact on wages negotiations.
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Swedish Association for local Govt Employers

4. Federation of Country Councils 3 and 4 act of behalf of 23 counties and 278 municipalities. 5 - The role of the Swedish State Govt ruled by Social Democratic Party for 59 years ( 1932-1991)- now rules via coalition - country of high tax ( 44%) and dev social welfare/security state - High CPA (Consumer Price Index) Before 1970s govt played little role in IR & settling disputes - 1970s govt has taken greater role in IR. Accords/ Social Settlements Agreements TU and Employers. 1. 1906 Accord 2. 1938 Accord - Centralised decision making in both Employers/ Unions sides 7. Worker participation/ Industrial Democracy 1. Strong in Scandinavian countries. Why? Strong humanistic ideas and country not totally following capitalistic economy - country run by Socially oriented parties. 2. Legislations(i)The Security of Employment Act (1974) (ii) The Promotion Employment Act (1974) (iii) Joint Regulation of working life Act (1976) Wage Earner funds- Investment Funds- To reduce wage/ salary gaps

6.

Current Situation- Introduction of HRM 1. HRM has also come to Sweden -.

2. Technological change and flexibility3. Reduction and flexibility of working time