Negotiating a new Swedish model: Employment transition agreements and the struggle over redundancies

Jan Ottosson,Olle Jansson

doi:10.1177/00221856211020033

Abstract

This article is aimed to contribute to our knowledge regarding employer and employee preferences about employment security and unemployment income protection as well as the degree of neoliberal change during the last decades through the lens of collective bargaining. It charts the institutional–historical development of an Employment Transition Agreement (ETA) between the bargaining cartel for white-collar unions, PTK, and the organisation for private employers, SAF/SN. ETAs are a form of institution through which Swedish trade unions and employer organisations give employees added protection in the event of redundancies, mostly in the form of added income protection but also matching services and shorter training programmes. Drawing from archival material and published statements in newspapers, the article engages with what the organisations wanted from such agreements during negotiations and how this shifted during the decades. The results show that the agreements have given employees added unemployment income protection while at the same time giving employees greater flexibility during collective lay-offs. It also shows how the agreement initially was more focused on employment security and proactive investments in skills. But when the balance of power shifted in favour of employers, PTK had to give up any such ambitions.

Highlights

Employment Transition Agreements (ETAs, omsta€llningsavtal), previously referred to as Employment Security Agreements, are collective agreements through which trade unions and employer organisations in Sweden provide added protection for employees in the event of dismissals
Is employment protection and unemployment protection the result of employers and their interest organisations making concessions to labour, either through collective agreements or government regulations and welfare schemes (Emmenegger, 2014)? Or are such institutions vehicles through which employers can overcome some of the problems of underinvestment in skill and re-training that are thought to be almost inevitable in a market economy (Estevez-Abe et al, 2001)? The article contributes to the debate on institutional change from a historical perspective: the debate as to whether there has been a shift towards a more neoliberal trajectory of change in industrial relations (Baccaro and Howell, 2011), or if the continued existence of collective agreements such at
This article has charted the institutional trajectory of ESA/ETAs between SAF/SN and PTK from the 1970s until the present time

Summary

Introduction

Employment Transition Agreements (ETAs, omsta€llningsavtal), previously referred to as Employment Security Agreements (trygghetsavtal, ESAs), are collective agreements through which trade unions and employer organisations in Sweden provide added protection for employees in the event of dismissals. Such agreements cover 90% of the Swedish labour market and provide support in the form of added income protection and matching services (Andersson, 2018; Walter, 2015). Is employment protection (such as job security regulations) and unemployment protection (such as unemployment insurance) the result of employers and their interest organisations making concessions to labour, either through collective agreements or government regulations and welfare schemes (Emmenegger, 2014)? Or are such institutions vehicles through which employers can overcome some of the problems of underinvestment in skill and re-training that are thought to be almost inevitable in a market economy (Estevez-Abe et al, 2001)? The article contributes to the debate on institutional change from a historical perspective: the debate as to whether there has been a shift towards a more neoliberal trajectory of change in industrial relations (Baccaro and Howell, 2011), or if the continued existence of collective agreements such at ETAs is an example of institutional resilience against such a development (cf. Martin and Swank, 2012)

Objectives

Methods

Findings

Conclusion