Wage increase of 7.4 percent agreed upon by Unions and Employers.

Representatives of employers and industrial unions announced at a press conference in Stockholm on Friday evening that a two-year industrial agreement has been reached, which will serve as a guide for the entire labor market. The agreement stipulates an overall level of 7.4 percent, with an annual increase of 4.1 percent in 2023 and 3.3 percent in 2024. Marie Nilsson, union chairman IF Metall, stated that due to the war and high inflation, there would be no real wage increase in 2023, but wages would increase next year. The agreement also includes a low-wage initiative and provides conditions for future wage increases. Tomas Undin, head of negotiations at Teknikföretagen, expressed satisfaction with the agreement, calling it positive for Swedish industry’s competitiveness.

An agreement has been reached on a two-year industrial agreement that will be a guide for the entire labor market. The level is 7.4 percent. The agreement involves an annual rate of 4.1 percent in 2023 and 3.3 percent in 2024. This was announced by representatives of the employers and industrial unions at a press conference in Stockholm on Friday evening.

“Real wage increases next year”

Marie Nilsson, union chairman IF Metall, says:

– The war in our vicinity together with the high inflation has had an impact, she says and points to the fact that there is a lightening:
– The forecast for the rest of 2023 points to a weak development. But in 2024, the recovery is expected to pick up speed.
But in 2023, real wages will not increase.

– Inflation will be high in 2023, which means that there will be no real wage increase in 2023. But we will be able to return to real wage increases next year, says Marie Nilsson.

According to Eva Guovelin, confederation chairman Livs, a low-wage initiative is also included in the agreement.

Also Per-Olof Sjöö, confederation chairman GS, emphasizes that the agreement provides the conditions to give real wage increases again in the coming years.

– We have managed to keep all the employers’ demands for deterioration out of the agreement, he says.

“is positive”

Also the next two years. It is positive for Swedish industry’s competitiveness, says Teknikföretagen’s head of negotiations Tomas Undin is satisfied.

“In a situation where it is difficult to predict the development of the world economy, we have reached an agreement that will be a stabilizing force on the Swedish labor market for the next two years. It is positive for the competitiveness of Swedish industry,” he says in a press release.

“Uncertainty in the wake of the pandemic, all the consequences of the war in Ukraine and rapid cost and interest rate developments have meant several difficult trade-offs in the negotiations. The agreed level is below many of the agreements reached in Europe but on the high side in relation to the initial values ​​of the employer side in the negotiations. It is positive that, through the weighting of the agreement, the parties have sent a clear signal that we have confidence that the Riksbank will succeed in its work to curb inflation,” continues Tomas Undin.

The text is updated.

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