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In the context of negotiations over the wages of three million workers, leaders of public sector unions, such as nurses, expect much greater public support to help enforce their demands. The result could be a tangible increase in wages, which will eventually drive inflation and be reflected throughout the economy.
“People literally stop and applaud our representatives, and support parties are held for those who work in the field of public welfare,” Tobias Baudin, leader of the municipal workers union, said in an interview.
All this show of support shows that unions are in a unique and strong position when wage negotiations begin, he noted. The Swedish example is likely to be repeated in other parts of the world: the heroes of these times are public servants facing the daily difficulties of a coronavirus pandemic.
“Most countries will find it difficult to ignore calls for more compensation for healthcare workers during a pandemic,” said Johanna Jeansson of Bloomberg Economics.
It may sound strange; After all, Sweden is famous for its social welfare network, but some healthcare workers in Sweden are barely making ends meet at the moment. T. Baudin, in charge until October 31. after signing the agreement, it reaches 3.5 percent for its members. salary increase, which would be the highest growth in half a decade.
Sarah Nordin, an assistant nurse in the intensive care unit where she experienced the horrors of COVID-19 firsthand, says she cannot make a living on her $ 33,600 a year salary.
“My monthly salary is far from what it should be,” the 36-year-old mother complained in the interview. – I don’t have the strength to maintain a positive attitude. It takes a lot of energy. “
Inflation expectations
The unions have several powerful supporters. Per Jansson, deputy governor of the Riksbank, says the current slow pace of wage growth is not “entirely” good for the Swedish economy.
Mr Jansson says that if the current remuneration scheme is maintained for a longer period of time, it will hamper the Riksbank’s efforts to reach its target price. Inflation was 0.7 percent in August. – significantly lower than the 2% set by the Riksbank. purpose. One of Sweden’s largest banks, SEB, estimates that inflation fell to 0.5 percent in September.
It’s worth noting that negotiations over 2.8 million private sector workers collapsed last month, threatening to stoke the government crisis, as Prime Minister Stefan Lofven faces pressure to change labor market laws. Last night, party leaders agreed to give employers ‘and workers’ groups more time to reach an agreement, but Sweden remains pressured by historic tensions stemming from the local labor market.
Mats Kinnwall, an economist at the Swedish Engineering Industries Association, says the required wage growth is “absolutely unrealistic.”
He acknowledges that the pandemic has changed the way of thinking, but warns that the wage increase sought by unions would put “a huge strain” on the national economy.
However, Jeansson of Bloomberg Economics sees no good reason for Swedes to fear pay increases. “If health workers are paid well above the average productivity threshold, of course it could fuel inflation,” he says. “Today, however, any risk of inflation would be welcomed by the central bank.”
Nordin will no longer receive a decision on salary increases. Nine years later, at the Nya Karolinska Hospital in Stockholm, the woman decided to quit her job and start working in adult education. Such a career step means that your monthly salary will increase by almost a third.
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