Swedish local goverment rise beats inflation

The Swedish union Kommunal has signed an agreement covering 350,000 manual workers in local and regional government under which pay goes up twice as fast as inflation. The deal, signed on 29 April, increases pay by 3.0% (650 SEK or €72 or £57.50 a month) at a time when inflation is running at 1.3% (April). It runs for 12 months from 1 April 2012 and for the lowest paid, who also get 650 SEK, the increase is worth 4.0%. The settlement also limits fixed-term employment to a maximum of three years.