The Swedish Confederation of Commerce and the Swedish Trade Employees' Union have launched negotiations for new collective agreements for workers in retail, warehouses, and e-commerce. The discussions begin against the backdrop of a serious downturn in the trade sector, with the retail crisis being described as the worst since the 1990s. This challenging environment has prompted the union to demand a 4.2 percent pay increase for a one-year contract, marking the second-highest raise request in nearly 30 years.
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The ongoing crisis in retail has been exacerbated by a stagnant economy, reduced sales, and an increase in bankruptcies and lay-offs, according to Sofia Larsen, CEO of Swedish Commerce. She emphasized that a recovery remains distant and warned that the global economic situation adds further uncertainty to the outlook for the sector.
A key demand from Swedish Commerce is the maintenance of unchanged starting salaries for new employees. For instance, a newly hired 19-year-old worker without prior experience currently earns SEK 25,243 in stores and SEK 28,225 in warehouses and e-commerce, with additional compensation for overtime work. The Confederation argues that raising starting salary thresholds could make it harder for young people to access employment in the retail sector, which has traditionally been a gateway to the job market for many Swedes.
In addition, the Confederation is advocating for better opportunities for individual salary development. This would allow employers more flexibility to allocate salary increases based on factors such as an employee's responsibility, competence, and performance. This is seen as a strategy to retain and develop talent within the industry, especially as many workers are leaving due to unfavourable conditions.
Another request is to allow part of the overtime compensation—paid for evening and weekend work—to be used for other salary investments. This proposal is not aimed at reducing the overall compensation, but rather at optimizing how the salary package is structured to better reflect the work performed.
The collective agreements under negotiation, covering both store employees and workers in warehouses and e-commerce, are crucial for around 200,000 employees in Sweden. These agreements, which expire on March 31, 2025, are among the most significant in the private sector and are seen as critical for shaping the future of employment conditions within Sweden's retail industry.
As the negotiations unfold, all eyes are on how these talks will address the pressing challenges facing Sweden's retail sector, with a particular focus on balancing fair pay with the realities of the ongoing economic difficulties.
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