Notes
Slide Show
Outline
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Swedish IRHRM: Themes and Contexts
  • Lecture 1 of 4
  • Themes and Contexts
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Administrative
  • Reading for Next class
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Review ‑ The Canadian and British Systems
  • Extensive versus Limited Legal Intervention ‑ both becoming more legalistic


  • The Bargaining Systems
    • Differences and similarities in structure
    • Differences and similarities in topics

  • Conflict ‑ differences in patterns
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Today
  • Themes
  • Contexts
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I‑ Themes of Swedish Industrial Relations
  • Voluntarism
  • Corporatism
  • System that promotes technical progress and economic growth
  • Recent changes in all of those features
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II‑ The Contexts of Industrial Relations in Sweden
  • The Political Context


    • Population of 9 million 2005


    • Parliamentary Democracy and Monarchy‑1 house Parliament - proportional representation


    • Social Democratic Party (SAP)
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II‑ Political Context
  • Other Parties
    • Center
    • Liberal
    • Moderate
    • Christian Democrats
    • Left Party
    • Greens
    • New Feminist Party 2005
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II‑ Political Context
  • Politically very stable system
  • Voting patterns quite class based
  • Member EU since 1995
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II‑ The Contexts of Industrial Relations in Sweden
  • Technological Context
    • One of most technologically advanced countries in the world
      • Among highest levels of labor productivity in world
      • Per capita highest level of computers and robots in world
    • Standard of Living
      • Rose rapidly in post‑war period
      • GDP per capita
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II‑ Technological Context

  • Well‑endowed with natural resources


  • Principal goods‑producing industries
    • Mining
    • Forestry
    • Manufacturing
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II‑ The Contexts of Industrial Relations in Sweden
  • Economic Context
  • One of most open economies in world
  • Welfare State
    • Comprehensive free medical care
    • Unemployment benefits
    • Poverty virtually non-existent
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II‑ Economic Context
  • Taxes ‑ Among most highly taxed people in world
  • Distribution of work force
    • Highest labor force participation rates in world
    • Highest female participation rates of all developed countries
  • Unemployment Rate
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II‑ Economic Context
  • Capital predominantly in private hands


  • High labor costs
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Next Time
  • Ideology
  • Labor Movement
  • Employer Organization
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Swedish IR ‑ Ideology and The Labor Movement
  • Lecture 2 of 4
  • Ideology, Labor Movement, Employer Organization
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Administrative
  • Reading for Next Class
  • Paper Reminder – 10/24


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Review
  • Parliamentary Democracy


  • Technologically Developed


  • Highly Productive Welfare State
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Today
  • Ideology
  • Unions
  • Alternative Federations
  • Social Democratic Party
  • Employer Organization
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I‑ Ideology
  • Societal Ideology


  • Party Ideologies on IRHRM


  • Ideologically overall this system shows as much compatibility as any
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II‑ The Unions

  • Manual unions organized by industry
  • Union Structure
      • Well developed plant structure
      • Branch level or local
      • National Union
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II‑ The Unions
  • Largest unions
  • Union finances
    • Principally dues
    • Unions have some sizable business investments


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II‑ Union Density
  • One of highest in world
  • Reasons
      • Cultural
      • Ideological
      • Training
      • Unemployment benefits, and some others, run through unions
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II‑ Unions – The LO
  • Confederation of Swedish Trade Unions
  • Founded 1898 as SAP affiliate
  • Membership
  • LO probably the most centralized & powerful union center among the western nations
  • High powered economic research unit
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III‑ Alternative Federations
  • TCO ‑ Central Organization of Salaried Employees
  • SACO ‑ Swedish Confederation of Professional Associations
  • LO has organized about 90% of potential members and TCO and SACO about 80%
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IV‑ Social Democratic Party (SAP)
  • General Relationship to Unions
  • Structure of the Relationship
    • Affiliation is by and through union branches
    • LO, no formal affiliation
  • Left Party
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V‑ Employer Organization For IRHRM
  • Structure - SAF
    • Swedish Employers’ Confederation
    • Association of associations
    • Financial Structure
    • Unaffiliated to political parties
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V- SAF
  • Policy


  • Powers


  • Public sector has separate negotiating groups
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V. Merger
  • 2001 SAF merged with Federation of Swedish Industries
  • New organization is the Confederation of Swedish Enterprise - SN
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Next Time
  • Government Organization
  • Procedural Rules – Law
  • Procedural Rules – Collective Bargaining
  • Substantive Rules
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Swedish IRHRM ‑ Government, Law and Bargaining Structure
  • Lecture 3 of 4
  • Government Organization, Law, Collective Bargaining and Substantive Rules
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Administrative
  • Reading for Next Class – second reading on Sweden
  • Collect papers
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Review
  • Parliamentary Democracy in Highly Developed Welfare State
  • Extensive unionization in occupationally divided unions
  • Close relations to party which is usually in power
  • Highly organized employers


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Today
  • Government Role
  • Framework of Procedural Rules
  • Voluntary Framework of Rule Making – Collective Bargaining
  • Substantive Rules
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I‑ Government Role
  • Government has traditionally abstained from interference in substantive terms in the private sector
  • Government employees able to negotiate and strike
  • 1993 Government temporarily set aside some aspects of certain collective bargaining agreements that unions had negotiated
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II‑ The Framework of Procedural Rules – Public Policy
  • Basic legal framework established in 1928 Act
      • Collective Bargaining Agreements legally enforceable and peace obligation imposed while agreements in force
      • Labor Courts to interpret and enforce agreements
  • 1936 Act required union recognition on request
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II‑ Public Policy
  • Shift toward increased legal intervention 1970s
  • 1974 law extended collective bargaining obligation
  • Act on Joint Regulation of Working Life ‑ 1976
  • Other changes which are important but don't regulate collective bargaining per se
    • 1972 law gave unions right to appoint 2 voting representatives on the board of each company with >100 employees
    • Work Environment Acts of 1974 and 1978 gave unions major role in workplace safety
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III‑ The Voluntary Framework of Rulemaking: Collective Bargaining
  • Collective bargaining widespread and almost universal for manual workers
  • The Basic Agreement
    • LO and SAF negotiated agreement in 1938
    • Compromise based on economic growth
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III‑ The Voluntary Framework of Rulemaking
  • The Basic Agreement
    • Established Labor Market Committee to deal with issues arising under the agreement
    • Describes the negotiation procedures
    • Hiring, layoffs, etc. ‑ Management given complete discretion here as long as no anti‑unionism
    • Handling of disputes threatening essential services
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III‑ Bargaining Structure
  • Initially industry‑wide bargaining
  • In 1941 LO expanded its right to be present at industry negotiations to the right to make proposals
  • Equivalent powers on SAF side.  Since 1905 no affiliated association can sign industry agreement without SAF approval
  • National Framework Agreements
      • Beginning 1956 industry negotiations preceded by framework agreement negotiated by LO and SAF
      • These set cost limits on industry agreements
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III‑ Bargaining Structure
  • Central & industry level bargaining has been carried out by elite of LO & SAF
  • 1990 SAF said it would again refuse to negotiate framework agreements
  • 1990s employers seemed to be trying to move bargaining down from industry to enterprise level
  • 1997 revisions


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IV‑ Substantive Terms and Conditions of Employment
  • Legislatively determined
    • Traditionally little of this but trend has been toward more
    • Now covers hours of work, holidays, social insurance and safety
  • Determination by Negotiations
    • "December Compromise" LO & SAF 1906
    • Traditionally, then, management insisted on & unions allowed full scope to modernize, rationalize, automate, etc..
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IV‑ Determination by Negotiations
  • Wages
    • In past, central negotiation had been the crucial level
    • LO policy of "wage solidarity" accepted reluctantly by SAF
      • Equal pay for equal job
      • Narrowing wage differentials
      • Women earn 89% men's wages, highest ratio anywhere
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IV‑ Substantive Terms and Conditions of Employment
  • Determination by Negotiations
    • Industry‑wide v Local issues
      • Typically industry agreements specify minimum wages
      • Widespread use of piecework (2/3 of employees)
      • Piecework negotiations major activity of factory clubs
    • Less vacation and holiday time than Germany and France but more than other countries in course
    • Quality of Worklife Issues


    • Sex Discrimination


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Next Time
  • Conflict
  • Administrative Rules
  • Comparisons
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Swedish IRHRM ‑ Conflict, Enforcement of Rules, Comparisons
  • Lecture 4 of 4
  • Conflict, Administrative Rules, Comparisons
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Administrative
  • Reading for next class - France
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Review
  • Organization of Employers and government
  • Legal Framework and its changing Direction
  • Outline of Bargaining System
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Today
  • Industrial Conflict
  • Administrative Rules – Enforcement and Interpretation of Agreements
  • Themes and Comparisons
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I‑ Industrial Conflict
  • Early History
    • At start of 20th century Sweden had one of the highest levels of conflict in the world
    • Post-World War II period union leadership came to see strikes negatively and level dropped to one of lowest in world

  • Limitations and restrictions on conflict
    • Must give 7 days notice of industrial action
    • No strikes during agreement
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I‑
Industrial Conflict
  • Limitations and restrictions on conflict
    • On union side
      • Secret ballot
      • Even then executive can over-rule
      • LO secretariat has final say.  TCO does not
    • On employer side, SN must consent to all lockouts & may order employers to lockout
    • Virtually never replace strikers
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I‑ Recent Strike Experience

  • Since 1945
  • Few official strikes
  • 1980 worst conflict since 1940s and gave Sweden worst strike record of all major countries for that year
  • 1999-03 - Higher work days lost than Germany or Britain but lower than other countries in course
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I‑ Industrial Conflict
  • Toys-R-Us affair
      • 1995 3-month strike against this American Co.
      • Company refused to sign agreement negotiated by retail employer association and recommended by mediator
      • Company also issued rules Swedes found insulting
      • Unions insisted company would have to abide by Swedish practices or close down
      • Signed individual agreement but virtually identical to industry one
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II‑ Enforcement & Interpretation of Agreements
  • Procedure
    • Most bargaining agreements have detailed provisions for negotiation of grievances
    • Then usually Labour Courts (tri‑partite)
  • Accordingly, in Sweden like Canada and the US, no‑strike understanding is collateral to a comprehensive disputes procedure
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III‑ Themes and Comparisons
  • Voluntarism
  • Corporatism
  • System that promotes technical progress and economic growth
  • Recent changes in all of those features
  • Comparisons to other systems
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Next Time
  • Begin France
  • Check Atlapedia and Labourstart