Since 1997 when the salary determination model "Märket" (The Mark) was introduced, we have seen a real salary increase of more than 60%. This is a model for real income increase while simultaneously providing stability on the labour market without disturbing competitiveness for Swedish businesses. It's quite brilliant, actually.
The first thing that happens in the process to negotiate a collective bargain agreement is that Unionen gather opinions from the members in various ways and what they consider the most important issues to pursue and prioritise. One of the most important demands always concerns what collective salary increase level Unionen should demand.
It is important that our efforts ensure more money finds its way into people’s wallets through real salary development while taking into account the ability of companies and workplaces to compete.
A glance in the rear view mirror (graph above) shows we have had a real salary increase of more than 60% since 1997, when the salary determination model we have was introduced.
A key explanation for this positive result is that we end up at the right level – what is usually called Märket (the Mark). It is important that we achieve the best possible level of salary development when negotiating for a whole market sector and thus contribute to a stable increase in both the short and the long term.
However, there is still no upper limit when it comes to your individual salary or the salaries at your workplace. The collective agreement provides you and your colleagues with solid, basic security, a ground floor, but you or your local trade union branch can always negotiate even better conditions and higher pay.
Why not always demand much more? Well, it’s all about achieving a sustainable level, when negotiating the mark as a guidepost for the whole market.
How do we do it? Apart from the current business cycle, which of course is the first thing to take into account, we need to look at productivity, inflation targets, cost development compared to other countries and international competitiveness.
It’s important that we don’t go for extremes when negotiating for a whole sector of the labour market at once, but instead achieve the best possible level, because we want to ensure stable salary development and to continue to have competitive strength in the international sphere.
N.B! This does still not stop an individual employer from offering an even higher rise to their employees.
But this carefulness is actually why the real salary has increased more steadily in Sweden than in the rest of EU. By being a part of this model, you act for your sake, and everybody elses.
