Working environment and labour costs

Our environment has the highest priority

The Swedish legislation pays a lot of attention to the working environment. Not surprisingly therefore, a lot of money and effort is spent to adapt workplaces in order to save people's health to the extent possible. Comprehensive programs, where ergonomic aspects are taken into very serious consideration, make up a substantial part of the health work carried out by public organisations and private companies alike.

Wages and payrolls

Swedish wage levels for high-tech specialists, engineers and executives are expected to remain highly competitive. Studies show that Swedish costs for such employees are among the lowest in Europe. Current industry wide collective bargaining agreements, running for three years, call for modest increases, while inflation continues to be kept in close check.

Payrolls

Sweden's comprehensive social insurance system covers old age pensions, health care, unemployment and disability benefits, maternity leave payments, child and youth benefits. The social insurance system is mainly financed through employer contributions, which add up to 33 percent of an employee's wage or salary. In addition, employers contribute 6 - 8 percent of an employee's pay to cover costs of collective supplementary pension and insurance schemes according to union agreements. Employees themselves contribute about 7 percent of their wages or salaries to health insurance and pensions.

Trade unions

About 85 percent of blue-collar workers and about 75 percent of white-collar workers belong to trade unions. The separate industry-wide unions are part of central organisations, the largest and most important being LO, the Confederation of Swedish Trade Unions, which covers blue-collar employees and municipal employees; and TCO, the Central Organisation of Salaried Workers, covering white-collar workers.

Companies generally are members of employer organisations that cover specific industries. These, in turn, are members of SAF, the Swedish Employers' Confederation.

At first, outsiders may view this structure as a bit complicated. But it works quite smoothly in reaching labour agreements, even though negotitations can be tough. The frequency of industrial actions - strikes and lockouts, both legal and wildcat - has always been very low in Sweden.

Labour contracts primarily cover only wages and employment rules, whereas holidays, sick leave, parental leave, etc., are covered by law.

Source (in part): Invest in Sweden Agency (ISA)