This is how the Swedish labour market works

The Right of Association in Sweden

First, the right of association is a matter of great importance in Sweden, to the extent that we have enshrined them in law (§7, MBL). This secures your right to freely join a trade union of your choice.

It is also regulated by law (§19b MBL) that as a union representative at your workplace, you have the right to get the time you need to do your union work. Your employer must not refuse or obstruct this.

Nor should he or she. After all, the work we do together within the Swedish Model with negotiations and agreements is for the improvement of the workplace as a whole - which should be in any decent employer's interest.

That is why nine out of ten workplaces in Sweden are indeed covered by collective bargain agreements.

This is the Swedish model: we meet! We agree!

The collective agreements form the basis of “the Swedish Model” in which the conditions in each sector are determined by the trade unions and the employer organisations.

While the government may establish boundaries through legislation, it does not interfere in this process. Instead, the labor market parties handle the negotiations and agreements themselves.

Thus this model combines flexibility for competitive companies with security and influence for employees. It's a real long term win-win.

The level of trade union membership in Sweden is about 70 percent* of the total workforce and membership is often encouraged by employers that through the agreement get a reliable and clear framework.

This gives Swedish trade unions a strong position, which is a crucial aspect of the Swedish model, while stabilizing the labour market as a whole through long periods of peace obligation, which is particularly attractive to businesses. 

* (Wait a minute, didn't we just say nine out of ten workplaces are covered by a CBA - but 70% are members? Yes! That is because a CBA covers the whole workplace and thus secures all the beautiful benefits as annual salary increases, overtime pay, full time holidays and extra parental pay for all employees, also non-members.)

Collective agreements

A collective agreement is a voluntary agreement between employers and employees on your rights at the workplace. The collective agreement regulates pay increases every year, overtime pay, supplementary insurance schemes, the right to exert influence and so on.

If you are employed at a workplace with a collective agreement you are covered with a reliable form of employment, decent working hours, holidays, notice period, yearly salary increases and much more. Not least:you are part of a model that brings good and sustainable conditions to the whole labour force, which benefits both employers and employees.

A floor, not a ceiling

The collective agreement provides you and your colleagues with solid, basic security at work, but you, or your local trade union branch, can always negotiate even better conditions and higher pay. There is no upper limit.