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Sweden is not a rich country by unpaid increases in real wages

the Swedish model of wage formation has worked very well. It has benefited both parties – business and wage-earners. The model meets the admiration and respect from the outside world. Lönebildningsmodellen over the last two decades have contributed to:

• the Eu's highest employment rate

• Strong competitiveness

• the Rise in real wages

But during the past two years, the Swedish wages were weaker than the outside world. Eurostat figures show that wages in the year 2018 increased at a faster rate in most european countries than in Sweden. In Germany, for instance, wages rose half a percentage point faster than in Sweden.

the Increase in salaries is also the source of increased demand for corporate goods and services and thereby increased production and sales.

Now sticking to a Swedish lönebildningsmodell that makes everyone – not just employers – to the winner. Then the required wages, which gives good reallönehöjningar. But now employers demand that we within the union must not take into account domestic price increases.

What would happen if the union accepted the employer's requirements and take account of domestic price increases in the wage-bargaining process?

1 Domestic demand would be dampened. IN the DN article considers the employers wages only as a cost. But the increased salaries are also the source of increased demand for corporate goods and services and thereby increased production and sales.

2 the Legitimacy of the model among the Swedish wage would quickly erode if it is unable to deliver the increases in real wages. Then, we risk chaos and unrest in the labor market.

Oosmakligt to the signatories of the article think that ordinary employees should keep again when the ceo salaries in the largest companies skyrocket from the ordinary people's salaries.

3 downward pressure on wages would increase the return for the holders of the capital and would, together with an increase in wage dispersion contribute to the widening. This runs the risk of fostering protectionist political forces that undermine the global value chains.

4 Omvandlingstrycket in Sweden would decrease because of artificially low wages and weaken the exchange rate. LO believe that it is the industry and overall productivity growth – not individual companies or industries – and price increases which determines löneutrymmet. Employees shall not, during a longer period of time, keep inefficient firms afloat by low wages.

Sweden is not a rich country by unpaid increases in real wages. In addition, it is distasteful that the signatories of the article think that ordinary employees should keep again when the ceo salaries in the largest companies skyrocket from the ordinary people's salaries.

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