The Swedish Model
The Swedish labour law system has much in common with the systems in other Nordic countries, but differs from the systems found elsewhere in the EEA zone. The difference has to do with the strong position that the labour market organisations traditionally enjoy in the Nordic area.
About 70 per cent of all employees in Sweden belong to a trade union. This high level of participation coupled with the absence of legal provisions restricting the organisations' activities means there is a considerable degree of autonomy.
Regulation through
collective agreements
The parties in the labour market (social partners) are responsible for wage formation themselves, and in principle engage in it without any interference from the political authorities. The regulatory emphasis is on collective agreements negotiated by the organisations concerned. Over 90 per cent of Swedish employees are affected by collective agreements.
Over 650 collective agreements
National collective agreements covering pay and general conditions of employment are largely negotiated by the social partners, via a central bargaining process. There are more than a hundred national organisations - some 60 unions and about 50 employer bodies. In all, there are over a hundred contracting parties in the Swedish labour market, reaching over 650 collective agreements. During the contractual period, the parties are under obligation to maintain industrial peace.
Few working days lost to disputes
By international standards, there are few disputes in the Swedish labour market, whether in terms of notice of industrial action, actual industrial action or work days lost. During the period 2000-2009, the total annual number of working days lost as a result of industrial disputes varied between 272 and 15 000, except in 2003 and 2008 when the figures exceeded 600 000 and 100 000 respectively, due to widespread unrest in the municipal sector.
Certain areas are regulated by law
Sweden has no system whereby collective agreements can be extended so as to apply throughout a given sector or industry. In some areas, conditions of employment are regulated by law, e.g. those covering working hours, holidays and other leave. Such legislation is largely non-compulsory in that the social partners can agree to contract out of it.
In Sweden, collective agreements are binding upon the contracting organisations and their members. This legal constraint applies within the scope of the agreement.
Employers are under obligation to the contracting unions to apply collective agreements to their employees.