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What impact does the establishment of the Swedish trade union system and collective bargaining have on socio-economic development?

author:Baihua Finance v

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Editor|Wen Zhiyuan

What impact does the establishment of the Swedish trade union system and collective bargaining have on socio-economic development?

The establishment of the Swedish trade union system and collective bargaining system

(1) The establishment of the trade union system

In the middle of the nineteenth century, the Swedish trade unions were formally established, and with the continuous improvement of social productivity, the conflict between labor force and capitalists became particularly intense.

This is mainly reflected in the strong resistance of trade unions by employers, the removal of union leaders, and frequent local strikes.

What impact does the establishment of the Swedish trade union system and collective bargaining have on socio-economic development?

In order to maintain an orderly labour market, the first national collective agreement for machine building was formally signed in Sweden in 1905.

In 1906, the Swedish Confederation of Trade Unions and the National Confederation of Employers signed the December 1906 Compromise, an agreement designed to encourage collective agreements to regulate the labour market, affirm the right of association and restrain the arbitrary dismissal of employees by employers, which gave rise to Swedish labour law.

In 1912, Sweden enacted regulations for the first time to protect labor safety representatives. This was followed by the promulgation of the first labor contract law in 1928.

What impact does the establishment of the Swedish trade union system and collective bargaining have on socio-economic development?

Parliament formally approved the Collective Labour Act in 1936, granting the right to bargain and organize to trade unions. In 1938, the Swedish employers' federation and trade union representatives signed a landmark foundation agreement.

The agreement recognizes the right of trade unions to organize workers and negotiate on behalf of workers to conclude labor contracts.

(2) The establishment of a collective bargaining system

From a traditional point of view, the state has largely minimized the regulation of the relationship between labor and capitalists through law. Swedish trade unions play an important role in regulating industrial relations in the form of collective agreements.

The Common Regulation Act 1976 is the most representative of these laws.

The promulgation and implementation of this law has significantly improved the status of trade unions in companies and strengthened and expanded their rights. The "Swedish model", which includes a tripartite collaboration between the state, trade unions and employers, is of great importance worldwide.

With the establishment of a cooperative, equal and reciprocal collective bargaining system, the labour market has also become increasingly stable.

What impact does the establishment of the Swedish trade union system and collective bargaining have on socio-economic development?

On the one hand, the Ministry of Labour only participates in tripartite negotiations as a representative of government interests, granting absolute independence to trade unions and employers, and through the collective agreement system, labor and management can regulate conflicts and contradictions in the labor market on their own, thus forming the backbone of the development of the national economy.

On the other hand, the private and framing character of Swedish labour law highlights the role of labour market organizations in the regulation of collective agreements and laws.

Swedish labour law makes it clear that agreements inconsistent with specific legal norms can only be made under collective agreements, and that inconsistent agreements become invalid in the case of individual agreements between employers and employees whose interests are not protected by law. The legal effect of collective agreements is valid for both parties and members.

What impact does the establishment of the Swedish trade union system and collective bargaining have on socio-economic development?

Only if the collective agreement allows it, the employer and the employee can negotiate a single agreement with the content of the same collective agreement.

When a violation of collective agreements occurs, the corresponding legal liability must be incurred.

The first principles of collective agreements are equality and reciprocity. Once a collective agreement is signed, the right of action of the parties and members of the agreement is automatically terminated.

(3) The essence of the trade union system and the collective bargaining system

Swedish society has been in power for more than half a century, and it is a concentrated representative of the interests of the working class such as workers, employers, and government employees.

After the implementation of the program, Sweden became a capitalist country with socialist characteristics in a sense.

What impact does the establishment of the Swedish trade union system and collective bargaining have on socio-economic development?

An important reason for the success of Swedish society is the establishment of the Swedish social welfare system in terms of both the market and trade unions.

On the one hand, it promotes economic growth and expands investment through the market to ensure that enterprises obtain sufficient profits and welfare.

On the other hand, the position of the trade union system in enterprises effectively protects the interests of ordinary workers from being infringed, so it coordinates the interests of labor and management at the economic level and brings a friendly atmosphere of cooperation.

In Sweden, the relationship between the interests of labor and the interests of management is popular, and a friendly and cooperative atmosphere with high enthusiasm of workers and strong investment willingness of capitalists is popular. And this atmosphere of peace is created through collective bargaining.

In the process of collective bargaining in Sweden, the trade unions not only promised to fight for the reasonable rights and interests of workers, but also in order to obtain high wages and benefits, the trade unions were very willing to cooperate with management to ease the contradictions between the working class and the bourgeoisie.

What impact does the establishment of the Swedish trade union system and collective bargaining have on socio-economic development?

However, enterprises in Sweden are still based on private ownership, and capitalists still have great ambitions to seize surplus value, so in the long run, the conflict between labor and management cannot be fundamentally resolved, and the drawbacks of reformism follow.

What impact does the establishment of the Swedish trade union system and collective bargaining have on socio-economic development?

Second, the short-term results of Swedish capitalist reforms

The three decades after World War II were a golden period of economic development for Sweden, and its economic growth rate was among the highest in the world. The remarkable results of Swedish capitalist reform in the three decades after World War II will be specified in the following three aspects.

(1) Promote economic development and social stability

Practice shows that capitalist reform in Sweden has greatly promoted economic development and social stability.

In the thirties of the twentieth century, after the impact of the worldwide oil crisis and economic crisis, the Swedish Social Democratic Party sought to adjust relevant economic policies in order to quickly get out of the economic crisis, change the government's negative attitude towards labor unemployment to a positive attitude, and adopt a proactive fiscal policy to achieve the goal of reducing unemployment.

What impact does the establishment of the Swedish trade union system and collective bargaining have on socio-economic development?

At the same time, with the addition of the country's macro-control means, inflation is reduced and the impact of the economic crisis on residents is minimized. The number of workers' strikes has been greatly reduced, and the corresponding scale of strikes has gradually decreased, initially controlling and stabilizing the trend of domestic economic depression, gradually recovering economic vitality, and continuing to improve development in all aspects.

Therefore, compared with other Western countries, Sweden has emerged from the economic crisis relatively quickly.

After World War II, Keynesianism began to spread widely in academia around the world.

The Swedish government and the economic community firmly believe that the fiscal policy of increasing public spending can be relaxed to drive the sustained growth of the Swedish economy, so that the public welfare policy has been expanded to a certain extent.

Practice also shows that in the three aspects of the labor market, full employment and equal income distribution, Sweden has chosen to loosen and expand public welfare policies and increase government public expenditure.

It has a great positive impact on social stability and economic growth, making Sweden's economic development officially enter a golden period of development, and the development model has gradually reached its peak.

(2) Full employment of the whole society has been basically achieved

Swedish society aims at equality in employment and advocates that the labor force, especially the female labor force, should also give full play to its value and enter the labor market to contribute to social production.

What impact does the establishment of the Swedish trade union system and collective bargaining have on socio-economic development?

In 1932, society took into account that the most serious challenge facing Sweden today was unemployment.

Therefore, we strongly advocate that all working-age workers join the labor market, reduce the impact of underinvestment on society by increasing public spending, and continue to expand employment opportunities and ultimately reduce unemployment.

This initiative of society not only received strong support from the people, but Keynesian theory coincided with the core idea of this initiative, the core of which is that the judgment of employment, the level of economic development and the vitality of enterprises should not be judged by capitalists independently, and government intervention is required to correct the mistakes of capitalists.

Therefore, the rapid expansion of the public service sector has promoted economic growth and a better employment environment.

The employment environment in Sweden has undergone earth-shaking changes after World War II, and the concept of comprehensive and equal employment in society is mainly reflected in the significant expansion of the female labor force.

What impact does the establishment of the Swedish trade union system and collective bargaining have on socio-economic development?

Generally speaking, changes in the structure of labor supply and demand directly lead to changes in the structure of employment, mainly because with the growth of the economy and the advancement of technology, many jobs that women can fill have been created.

Secondly, because of the transformation of the industrial structure, from the secondary industry represented by the manufacturing industry to the tertiary industry represented by the service industry, the demand for labor in the government and public sector has also increased relatively.

Both of these manifestations have increased society's demand for female labor.

Unlike other countries, Sweden has changed the structure of labor supply and demand relatively quickly through the implementation of the government's corresponding economic policies, which has made an important contribution to the female labor force to join the market.

(3) Reducing the gap between classes to promote social equality

In the conditions of a market economy, a remarkable social fact is that income and wealth cannot be distributed equally. So how to avoid polarization, narrow the gap between all social strata, promote social equality, avoid potential risks in the process of economic growth, and reduce the unknown impact in the process of reform is the goal that all capitalist countries, including Sweden, are trying to achieve.

What impact does the establishment of the Swedish trade union system and collective bargaining have on socio-economic development?

In Sweden, there are two main reasons for the small gap between social classes.

The first is that the government provides a universal welfare system for all people and narrows the gap between different classes.

The second is the government's measures to provide sufficient fiscal support for the redistribution of social production by imposing high taxes.

Sweden has chosen two specific approaches.

First of all, the government provides all kinds of social insurance and social assistance support to all the people, and the low-income strata have basic guarantees to maintain their livelihoods.

As a result, significant results have been achieved in a relatively short period of time and, in the long run, have contributed to changes in the social structure, since the direct redistribution of income and wealth of the present generation leads directly to the realization of absolute equality in the innate conditions of future generations.

Second, the government chose a progressive system of high marginal tax rates to support a universal high-welfare system, which has significantly reduced the income gap between residents.

The combination of these two practices constitutes Sweden's income redistribution method, which to a certain extent has gradually narrowed the gap between income and wealth among all segments of society.

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