Trade union negotiations with Swedish fintech giant Klarna break down
A Swedish trade union has pulled out of negotiations with Klarna after unsuccessful attempts to strike a collective bargaining agreement for employees of the payment solutions company.
“We have reached a point where there are no issues left to discuss and have ended up having to walk away from negotiations,” Martin Wästfelt, head of negotations at Unionen, told union magazine Kollega.
“Our demand for a collective bargaining agreement remains, but there is nothing more to talk about. It takes two to have something to negotiate,” he added.
Although nine out of ten employees in Sweden are covered by a collective bargaining agreement, they are less common in the startup and tech bubble.
Wästfelt said that there had been some fruitful conversations about for example pensions, but accused Klarna of attempting to “delay” the process.
Asked whether the union would now order its members to strike, he said:
“It’s our last resort and an important tool. But we won’t say now exactly what will be our next step. A conflict is not our ultimate goal but a necessary means – if we have to.”
Klarna CEO Sebastian Siemiatkowski said he regretted that the union had pulled out of negotiations, but added he was not convinced his employees would be better off with a collective bargaining agreement.
“We also addressed concerns our employees have about the lack of evidence that a sufficient number of employees want this change. Unfortunately, the unions were unwilling to share any such information with us,” the TT news agency quoted Siemiatkowski as writing.
Working conditions at major international companies have been a hot topic in Sweden in the past year after tech workers at Spotify and Klarna launched a push for collective agreements.
Those in favour of collective agreements argue that they are an essential part of the Swedish model, ensuring good and equal contracts for everyone. Those against argue that up-and-coming businesses in the modern labour market need more flexibility than these deals offer.
Spotify in September pulled out of negotiations with trade unions.
“While we have a lot of respect for collective bargaining agreements and the Swedish model, our employment conditions and benefits are already just as good or better than what is stipulated in a collective bargaining agreement and our plan remains to keep offering our employees first-rate wages and benefits,” a Spotify spokesperson told startup news site Breakit at the time.
Last week, the Swedish metal workers' union threatened to order its members to strike at Tesla, unless the car manufacturer signs a collective bargaining agreement.
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“We have reached a point where there are no issues left to discuss and have ended up having to walk away from negotiations,” Martin Wästfelt, head of negotations at Unionen, told union magazine Kollega.
“Our demand for a collective bargaining agreement remains, but there is nothing more to talk about. It takes two to have something to negotiate,” he added.
Although nine out of ten employees in Sweden are covered by a collective bargaining agreement, they are less common in the startup and tech bubble.
Wästfelt said that there had been some fruitful conversations about for example pensions, but accused Klarna of attempting to “delay” the process.
Asked whether the union would now order its members to strike, he said:
“It’s our last resort and an important tool. But we won’t say now exactly what will be our next step. A conflict is not our ultimate goal but a necessary means – if we have to.”
Klarna CEO Sebastian Siemiatkowski said he regretted that the union had pulled out of negotiations, but added he was not convinced his employees would be better off with a collective bargaining agreement.
“We also addressed concerns our employees have about the lack of evidence that a sufficient number of employees want this change. Unfortunately, the unions were unwilling to share any such information with us,” the TT news agency quoted Siemiatkowski as writing.
Working conditions at major international companies have been a hot topic in Sweden in the past year after tech workers at Spotify and Klarna launched a push for collective agreements.
Those in favour of collective agreements argue that they are an essential part of the Swedish model, ensuring good and equal contracts for everyone. Those against argue that up-and-coming businesses in the modern labour market need more flexibility than these deals offer.
Spotify in September pulled out of negotiations with trade unions.
“While we have a lot of respect for collective bargaining agreements and the Swedish model, our employment conditions and benefits are already just as good or better than what is stipulated in a collective bargaining agreement and our plan remains to keep offering our employees first-rate wages and benefits,” a Spotify spokesperson told startup news site Breakit at the time.
Last week, the Swedish metal workers' union threatened to order its members to strike at Tesla, unless the car manufacturer signs a collective bargaining agreement.
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