26 February 2007

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New conservative government is fast losing popular support:
Sweden's commercial workers close ranks to defend the Nordic social model

Sweden's commercial workers are rallying around their trade union to defend themselves against government attacks on their living conditions. Fewer members than expected stopped paying their union fees when the government forced the unions to major increases to finance their unemployment insurance schemes.


- When the right-wing alliance won the elections it was clear that four tough years with unfair rightist politics are now waiting for us, Handels president Lars-Anders Häggström said when he commented the new political situation in December. - It is not enough that they have the unemployment insurance deteriorate, at the same time they take care that those who want to insure themselves against unemployment also have to finance the tax cuts for the rich.

- Many members who had thought of leaving the union because of the increase of the unemployment fund fees have now understood that it is the government and nobody else who are behind the shock increase of the members' contributions, Handels president Lars-Anders Häggström says. With 168,000 members, Handels is one of the largest UNI Commerce affiliates.

New members are signing up

The union president has just come back from a week of workplace visits, when Handels representatives held direct talks with 22,000 members at 10,000 workplaces. Four hundred workers signed up as new members during this week, which testified about the fighting spirit as the union is approaching its collective bargaining round. More than 600 members agreed to take up active responsibilities as personnel representatives and shop stewards.

The Reinfeldt government's strategy with the cuts is to force the employees to take jobs with lower pay, or in the worst case, to accept lower pay to keep their jobs. When the unemployment benefits go down to levels that are thousands of Crowns (1,000 Swedish Crowns = 114 US Dollars) under the minimum levels in collective agreements, it will lead with time to a new low-wage market, says Wanja Lundby-Wedin, president of Sweden's trade union confederation LO.

Government and employers are dismantling social model

In the run-up to the collective bargaining round, Sweden's employers are trying to make use of a like-minded government and force through a major de-regulation of working life. What is at stake is the so-called Nordic social model, which protects the right of everyone to a decent life and social security without putting a cap on individual entrepreneurship and success. This approach, which has been related particularly to Sweden, is fast being dismantled by the new conservative political majority.

A more expensive unemployment insurance with lower benefits and more restrictions to the right to receive payments are only one part of the government attacks on those who are already most disadvantaged. Also sick pay will be cut, as well as parental pay. Workers who need retraining to keep up their employment or employability will see their chances dwindle as overall budgets suffer significant cuts. Retirement benefits will decline as well, particularly for those workers who have experienced longer spells of sick leave.

The workplace health and safety inspection system is among the victims, with the Swedish Work Environment Authority being forced to draconian budget cuts. The cuts correspond to a loss of 300 of the 800 inspectors presently employed. The National Institute for Working Life will be closed down, which is a major blow to the knowledge creation that is necessary for developing health and safety as well as decent working conditions.

Government has lost its support but continues its 'reforms'

Additional 'reforms' are in the government's pipeline. Traffic insurance payments will be taxed which will raise costs with one third. The same day, well-to-do people will get a considerable tax rebate to stimulate them to buy services such as cleaning, laundry, lawn moving, window cleaning and child minding in their homes, Sweden's trade union confederation LO tells. And this is just the beginning - in June, the government will present its proposal for a major cut in property taxation.

Prime Minister Fredrik Reinfeldt and his conservative government would be sent packing and back to opposition by the voters if there were elections today. Only 42,2 per cent would give their votes to the government parties while the social democrat lead opposition would receive 53,6 per cent of the votes. Regrettably though, new elections are still far away.