Annette Thörnquist

Do public sector industrial relations challenge the Swedish model

Abstract This article discusses recent developments in public sector labour relations in Sweden from a historical, gender and power relations perspective. The main question is whether these trends challenge the established Swedish industrial relations system. Our point of departure – yet chronologically also the point of arrival – is the Swedish Municipal Workers’ Union, Kommunal’s, exit from the coordinated wage setting model within the Swedish Trade Union Confederation (Landsorganisationen, LO) in 2015/2016. The immediate reason was that Kommunal, representing one-third of the LO members, including many low-paid women, turned down the LO’s proposal on a general wage increase for low-wage groups. Instead, Kommunal urged to upgrade wages for a specific member group, the auxiliary nurses. This broke an almost uninterrupted 20-year-long period of labour market cooperation and coordination that was introduced in 1997 through the so-called Industry Agreement (Industriavtalet). This agreement was launched in the wake of the deep financial crisis in the early 1990s, and the neoliberal move towards a complete decentralization of pay negotiations. How should this move by Kommunal be interpreted? Why, and when, has the centralized system become a straitjacket for Kommunal, when for decades it seemingly was a precondition for both private and public union strength?

Austerity and public sector trade union power: Before and after the crisis:

We use a power resources approach to examine the effects of the 2008–2009 financial and economic crisis on public sector trade union power in Germany, Spain, Sweden and the UK, comparing structural, organizational, institutional, societal and political power resources before and after the crisis. Unions’ power resources have (at least temporarily) weakened in Spain, with a similar but less pronounced trend in the UK; whereas in Sweden and Germany, one can detect ambiguous but slightly positive signals, which reflect neither the crisis nor opposition to austerity. As well as structural, organizational and institutional power resources, societal and political resources are decisive for public sector trade unions.