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More Swedish unions approve pay cuts to save jobs

Published: 16 Apr 09 16:47 CET | Double click on a word to get a translation
Online: http://www.thelocal.se/18894/20090416/

The number of unions in Sweden’s manufacturing sector agreeing to pay cuts and shorter working hours in an effort to save jobs is increasing dramatically.

According to the IF Metall union and the Association of Swedish Engineering Industries (Teknikföretagen), one of the largest employers’ groups in the manufacturing sector, between 100 and 150 crisis packages have been signed around the country between labour groups and employers in recent months.

“It’s sped up a great deal recently,” said IF Metall’s Veli-Pekka Säikkälä to the TT news agency, adding that he reckons the agreements have likely saved thousands of jobs.

“But if they are truly saved will depend on how long the downturn lasts,” he said.

A recent agreement between aluminum manufacturer Sapa Profiler and labour groups to move to four-day work weeks will save 100 jobs at the company.

While more than 100 agreements have been signed between different chapters of IF Metall and the engineering association, the association’s chief negotiator Anders Weihe suspects a number of other agreements have been reached with smaller companies without the knowledge of the union or the association.

The engineering employers’ group also recently reached an agreement with the Swedish Association of Graduate Engineers (Sveriges Ingenjörer), allowing chapters of the latter to enact local crisis packages with various employers.

But negotiations with Unionen labour group have yet to be concluded.

“Negotiations are heading in the right direction,” said Weihe.

TT/The Local (news@thelocal.se/08 656 6518)

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09:05 April 17, 2009 by justanotherexpat
First time posting on here - specific question about the consequences of action described in this article.

Let's say you go from a 5-day week to a 4-day week = 20% drop in salary.

The action doesn't save your job and your company goes under and/or you are made redundant. You are a member of A-Kassa and as such are afforded assistance with benefits for a certain time period............but that assistance is based on a certain % of your salary, right?

Your salary according to your contract of employment prior to the reduction in the working week or after? If after, does your employment contract become altered when the working week is reduced?

It's a serious point - because you either get 80% of 100% of your contracted salary, or you get 80% of 80%.............big difference when the bills are the same.........

Advice appreciated.
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