The Swedish model and the pandemic: trust, trade union rights and collective self-regulation

Abstract

10 | International Union Rights | 27/3 FOCUS | IMPACTS OF COVID-19 ON WORK AND THE CHALLENGE FOR UNION RIGHTS The Swedish model and the pandemic: trust, trade union rights and collective self-regulation ‘Normality’ in a society takes place on a narrow mountain plateau supported by democracy and trade union rights. On one side of the peak, the slope downwards into the dark valley of technocracy is steep. The other side falls away into the crevasse of populism. Both form the pit of authoritarianism, where democracy and trade union rights are but lofty dreams. Life on the mountain plateau can seem safe. But the security of ‘normality’ is deceptive. When Covid19 rocks the foundations, life on the plateau sways. The democratic state suddenly does not feel so secure. Some argue that a pandemic was expected; that our western capitalist economies were bound to enter a crisis. So it might be, but Covid-19 has also proven to be an unpredictable threat not only to human lives and our post WW2 political and economic system, but also to democracy and trade union rights. How can Covid-19 be fought back? Each country has had its different strategies. Some countries have experimented with curfews, lock downs and closed borders. The consequences for the wellbeing of citizens and the economy have been severe. Other countries have trusted their citizens to take on more personal responsibility. Everyday life and economic activities, albeit somewhat slower, have been able to continue. The latter approach, the Swedish way, has caught international attention. This article argues that much of the foundations that underpin the Swedish collective self-regulatory labour market model have also been conducive to the Swedish Covid-19 strategy. Conditions vary between countries. One must do the best with the conditions where one finds oneself. Social capital, trust and responsibility are some of the key ingredients. The collective self-regulatory labour market can be used as tool to understand why a different path was possible in Sweden, but also to illustrate the importance of appropriate national solutions. Trust and self-regulation as a legislative strategy Trade unions and employers in Sweden are well organised and enjoy a large autonomy to regulate matters between them. There is no legislative minimum wage or system to declare generally binding collective agreements. The Swedish collective self-regulatory system, as professor Otto Kahn-Freund, the father of collective labour law, would have put it, is a laissez-faire system. The Swedish legislator trusts employers and trade unions. But the social partners generally also trust the legislator. Autonomous collective agreements cover all economic activity on the labour market in practice – and also establish norms for nonorganised employers and workers. Collective self-regulation also makes matters easier for the legislator. Most conflicts and problems generated by technological, organisational development and changed conditions in general on the labour market can be solved by the social partners. The legislator’s attention can then be elsewhere. Trust often grows out of actions. Trade unions and employers in Sweden have largely been acting responsibly since the 1930s. Many national crises have been solved, partly or fully, through the adaptability that collective agreements provide. Some recent examples are the economic crisis in the 1990s, when the wage-formation system was transformed, but also in 2008 when special collective agreements provided solutions to the liquidity problems caused by the financial crisis. The strong self-regulatory Swedish labour market model has many advantages. It gives the buyers and sellers of work power to regulate the price and conditions of labour. Agreements can win legitimacy, but they can also balance and change local power relations. Self-regulatory models often make a difference for people. They engage people in conditions at their workplace and often make real change. An authoritarian dynamic is never far away in society In country after country, authoritarian traits are becoming more prominent. The framework of populism falsely posits the ‘proper people’ against the ‘corrupt establishment’. It is an authoritarian tradition that tends to restrict democratic freedoms and rights, especially the right of expression and association – the same fundamental rights that form the basis for trade unionism. Populist politicians tend to ignore the experts and pretend to be...