New collective agreement in the Swedish finance sector

”I am pleased that we have retained a high degree of trade union influence over working hours,” says the President of Finansförbundet, Lillemor Smedenvall.
The issue of working hours was the main stumbling block in the negotiations which have been underway since the autumn. The employers represented by BAO wanted to be able to schedule work up to 18.30 for five evenings per week. Previously the employers were able to do this for one evening per week. Under the new agreement this will instead be possible for two evenings per week.
”I think this is an acceptable compromise and a concession we had to make to reach agreement. The final offer from the arbitrators was in fact four evenings per week,” says Lillemor Smedenvall. She adds that the success of the negotiations is due to the great support and patience shown by the members in recent months.
“Without their support we would not have this agreement.”
Structure includes guarantees
The pay increases amount to 3.6 per cent for the members of Finansförbundet over the contractual period. The agreement also includes an individual guarantee of 1.2 per cent – although with a minimum level of SEK 400.
”In the current financial situation this is a good result that probably entails both the protection of real wages and pay improvements. The fact that we been able to keep a structure with guarantees and a cash minimum - which BAO absolutely did not want – will favour women who are usually those who suffer from unreasonable differences in pay.”
Finansförbundet fought hard for the allocation of special funds to eradicate unfair differences in pay between women and men.
”I am disappointed that BAO – which says that unreasonable differences in pay should not exist – would not agree to this. Knowledge and information are good, but money is also needed to eradicate these differences. I am surprised that the arbitrators couldn’t help us given that one of the tasks of the National Mediation Office is to promote equal pay,” says Lillemor Smedenvall.
She points to several improvements in the agreement, for example the fact that everyone will get 27 vacation days from and including this year. Those who already have more days than this will keep them. Security of employment for those on temporary employment contracts will also be improved. People who have been employed for 27 months during the last five years will be given permanent employment contracts. When 6 June (Sweden’s National Day) falls on a Saturday or Sunday, all permanent employees will get a day off. The holiday pay supplement will be increased to 1.45 per cent.
Major differences
Why have the negotiations taken so long?
”Partly because of the major ideological differences between the parties, which took a long time to resolve, and partly because BAO wanted to make significant changes to an agreement that we thought was good. The distance between the parties was colossal when the negotiations began.
As there were such great differences it was really unfortunate that the parties were unable to discuss things directly with each other throughout the process. It has been more difficult and has taken more time to talk to each other through intermediaries; that is the arbitrators. It was BAO that broke off the negotiations at an early stage and called for arbitration, which we later accepted,” says Lillemor Smedenvall.
Damaged relations
What consequences will these differences have for relations between the parties in the future?
”Our relations with BAO have been damaged during this process, and our trust in them has been undermined. Both parties need to work to repair this damage as we have important issues to resolve in the period ahead. The agreement stipulates that four working groups should be appointed to address various issues and we have to negotiate a new agreement on pensions,” says Lillemor Smedenvall.