The employers saw the union’s demand for a wage increase: Unrealistic

The industrial unions demand wage increases of 4.2 percent.
“Completely unrealistic”, the employers believe.
It is a high demand, a worrying demand, says Per Widolf, head of negotiations for the Industrial Employers to TT.

Ahead of the winter’s major bargaining, the five trade unions in the industry, IF Metall, Unionen, Sveriges Ingenjörer, GS and Livs, have come together in a united front.

By March 31 at the latest, they hope that their demand for 4.2 percent higher wages has been met. Twelve of the LO board’s thirteen unions have also supported it.

– It is based on careful consideration of the financial conditions, said IF Metall’s chairman Marie Nilsson at a press conference on Monday.

“A worrying demand”

But from the employers’ side, the tone is different.

– It is a high demand, a worrying demand. We see nothing in the economic fundamentals that speaks for these wage demands, says Per Widolf, head of negotiations for the Industrial Employers to TT.

Furthermore, he says that such a wage increase would hit growth and employment hard. “Completely unrealistic,” says the employers’ organization Ikem.

“It would lead to a deterioration in Swedish competitiveness and hit both jobs and welfare, and it also risks driving inflation,” says Henrik Stävberg, head of negotiations, IKEM, in a written comment to the news agency.

“Doesn’t recognize me”

The unions believe that Swedish industry has strengthened its international competitiveness and can therefore afford the historically high wage increase. But Per Widolf disagrees.

He believes that many companies are announcing layoffs, at the same time they are struggling with higher prices and high interest rates.

– So I don’t recognize myself in the picture, he tells TT.

The two-year agreement that applies now expires on March 31 and has yielded 7.4 percent in two years, which corresponds to 3.7 percent per year on average. In addition to the proposed increase of 4.2 percent, provisions must be made for various forms of reduced working hours.

t4-general