Swedish Affiliate IF Metall Agree Crisis Deal in Bid to Prevent Massive Job Losses

The ETUF-TCL Swedish affiliate IF Metall has reached an agreement with employers aimed at preventing massive job losses. Some 25,000 IF Metall union members have so far lost their jobs and a further 40,000 have been warned their jobs are at risk in the current economic crisis.

The agreement was signed earlier this month between IF Metall and three employers’ federations covering metal, chemical, textiles and other sectors.

The one-year deal allows employers and plant-level unions to agree special arrangements, such as reduced working time or educational leave, as a means of avoiding making workers redundant.

Under the scheme workers are able to keep their jobs and receive 80% of their wages, which because of the additional compensation paid by employers amounts to more than they would receive on unemployment benefit.

The framework agreement was reached at national level but arrangements must be negotiated at local level between employers and plant level unions.

IF Metall says it reached the agreement after its proposals to the government fell on deaf ears. The union says its members are making a significant contribution to resolving the crisis and they will now be looking to the government to make greater efforts to providing funding for training.