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Economic uncertainty in focus at Swedish agreement seminar

Contract negotiations between the labour market parties are currently in full swing. When the Swedish Business and Society Association (SNS) organised a seminar this week, both unions and employers were present to discuss the conditions for agreement 2025.


Photo: Dreamstime.

From the employer's side, the negotiating managers Tomas Undin from Teknikföretagen and IKEM's Henrik Stävberg participated. From the union side, Camilla Frankelius, negotiating manager at Sveriges Ingenjörer and Martin Wästfelt, negotiating manager at Unionen, participated. Among other things, the tough economic situation was discussed - and Tomas Undin emphasised the importance of reaching an agreement that looks forward with reasonable conditions.

'It doesn't look good - most things are going downhill with a weak labour market and weak growth in an uncertain environment,' Tomas Undin stated about the starting situation.

During the conversation, the value of the Swedish model was highlighted - the discussions held between the parties are part of a "well-oiled machine" according to Martin Wästfelt, Unionen, and the established process was highlighted as important when things go wrong.

Finally, the issue of reduced working hours, raised by the trade union side, was discussed. Although the industrial unions lack a common goal in the negotiations - something that led to internal disagreements when the unions' agreement platform was presented - the issue is being investigated in parallel. It is also expected to be discussed at the Social Democrats' congress in May following an internal proposal. An initiative that is not appreciated by the social partners.

'We are going to sign an agreement now in March, then there is the S-Congress and in 2026 there are parliamentary elections. We could be in power with a parliamentary majority for reduced working hours while we have a peace obligation and if it is legislated it is very difficult to negotiate the issue afterwards,' Tomas Undin summed up before Henrik Stävberg added that it is an issue that should be resolved between the social partners - not through legislation.

The seminar began and ended with Lars Calmfors, professor emeritus of international economics at IIES and researcher at IFN, speaking about the economic situation. He emphasised the importance of looking at the world we live in and that any agreement signed must factor in, for example, the weak economic development in Germany and potential trade tariffs from the United States.

Today, the Confederation of Swedish Enterprise also released its latest economic report, which further highlights the poor economic situation.

'This has been an incredibly tough recession and it is now ten quarters in a row where companies feel that things are going worse than in a normal situation. It is also very uncertain where the economy is heading,' states Sven-Olov Daunfeldt, Chief Economist of the Confederation of Swedish Enterprise, in the report.

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