New deal for employees of foreign firms in Sweden

Sweden's main union confederation, the LO has signed an agreement with the national employers' association guaranteeing equal treatment for employees working for foreign companies in Sweden.

Companies who are in Sweden for a short period but employ people in the country are normally given temporary membership of the appropriate industrial employers' body. However, until now they have not been required to follow the terms of collective agreements negotiated between that employers' body and the unions.

This new agreement now means that these foreign companies should provide equal treatment for their employees in terms of pay, hours and other conditions as companies permanently established in Sweden. Individual unions and employers' associations at industry level have until 31 October to amend their collective agreements to this effect.

Erland Olauson, who signed the agreement on behalf of LO, described the agreement as "a victory for the Swedish model".

LO has also said that if a foreign company does not apply for temporary membership of the appropriate employers' body, it will fall outside the agreement and so unions will try direct negotiations with the company. The pressure to secure an agreement will "if necessary" include industrial action.