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The Ghent system is the name given to an arrangement in some countries whereby the main responsibility for welfare payments, especially unemployment benefits, is held by trade unions rather than a government agency. The system is named after the city of Ghent, Belgium, where it was first implemented. It is the predominant form of unemployment benefit in Denmark, Finland, Iceland and Sweden. Belgium has a hybrid or "quasi-Ghent" system, in which the government also plays a significant role in distributing benefits. In all of the above countries, unemployment funds held by unions or labour federations are regulated and/or partly subsidised by the national government concerned.
Because workers in many cases need to belong to a union to receive benefits, union membership is higher in countries with the Ghent system. Furthermore, the state benefit is a fixed sum, but the benefits from unemployment funds depend on previous earnings.
From January 2007, the Swedish state decreased its financial support to the unemployment funds (most of them union-run, a few funds aimed for small entrepreneurs and one independent fund), with the result being that membership fees to unemployment funds had to be raised considerably, and union density declined from 77% in 2006 to 71% in 2008. [1] In January 2014 the fund fees were restored to about the same level as before 2007. In 2015 Swedish union density was 69% and the density of union unemployment funds 73% (75% if the independent Alfa fund is added). [2]
Ghent system in Czechoslovakia was adopted in 1925 mainly thanks to social democrats. It was largely opposed by the communist trade unions due to restrictions in work of communist red unions.
A trade union or labor union, often simply referred to as a union, is an organization of workers whose purpose is to maintain or improve the conditions of their employment, such as attaining better wages and benefits, improving working conditions, improving safety standards, establishing complaint procedures, developing rules governing status of employees and protecting and increasing the bargaining power of workers.
The Swedish Confederation of Professional Employees is a national trade union centre, the umbrella organisation for 12 trade unions in Sweden that organise professional and other qualified employees in both the private and the public sectors. The affiliated trade unions represent about 1.2 million employees. In 2018, the TCO affiliated unions made up 37% of all active trade union members in Sweden, making the confederation the second largest of Sweden's three major confederations. The largest TCO affiliate is Unionen with 551,000 active members in 2018. TCO is independent and not affiliated to any political party in Sweden. TCO is an affiliate of the European Trade Union Confederation and Eurocadres.
The Swedish Trade Union Confederation, commonly referred to as LO, is a national trade union centre, an umbrella organisation for fourteen Swedish trade unions that organise mainly "blue-collar" workers. The Confederation, which gathers around 1.5 million employees out of Sweden's 10 million people population, was founded in 1898 by blue-collar unions on the initiative of the 1897 Scandinavian Labour Congress and the Swedish Social Democratic Party, which almost exclusively was made up by trade unions. In 2019 union density of Swedish blue-collar workers was 60%, a decline by seventeen percentage points since 2006 when blue-collar union density was 77%. A strong contributing factor was the considerably raised fees to union unemployment funds in January 2007 made by the new centre-right government.
Social welfare in Sweden is made up of several organizations and systems dealing with welfare. It is mostly funded by taxes, and executed by the public sector on all levels of government as well as private organizations. It can be separated into three parts falling under three different ministries. Social welfare is the responsibility of the Ministry of Health and Social Affairs. Education is the responsibility of the Ministry of Education and Research. The labour market is the responsibility of the Ministry of Employment.
The Alliance, was a centre-right liberal-conservative political alliance in Sweden. The Alliance consisted of the four centre-right political parties in the Riksdag. The Alliance was formed while in opposition, and later achieved a majority government in the 2006 general election and a minority government in the 2010 general election, governing Sweden from 2006 to 2014 with Fredrik Reinfeldt of the Moderate Party serving as Prime Minister of Sweden until 2014. The Alliance was co-chaired by every component party's individual leaders.
Sweden, formally the Kingdom of Sweden, is a Nordic country located on the Scandinavian Peninsula in Northern Europe. It borders Norway to the west and north, and Finland to the east. At 450,295 square kilometres (173,860 sq mi), Sweden is the largest Nordic country and the fifth-largest country in Europe. Its capital and largest city is Stockholm. Sweden has a population of 10.6 million, and a low population density of 25.5 inhabitants per square kilometre (66/sq mi); 88% of Swedes reside in urban areas. They are mostly in the central and southern half of the country. Sweden's urban areas together cover 1.5% of its land area. Sweden has a diverse climate owing to the length of the country, which ranges from 55°N to 69°N.
The Swedish Metalworkers' Union was a trade union in Sweden.
The Swedish Union for Service and Communications Employees is a trade union in Sweden.
The Swedish Union of Commercial Salaried Employees was a trade union in Sweden. It had a membership of 160,000 and represented workers in a variety of industries, ranging from wholesaling, transport, freight forwarding, civil aviation and travel agencies to retailing, media companies and private dental practice.
The cabinet of Fredrik Reinfeldt was the cabinet of Sweden from 2006 to 2014. It was a coalition cabinet consisting of the four parties in the centre-right Alliance for Sweden: the Moderate Party, Centre Party, Liberal People's Party and the Christian Democrats.
In Sweden, an unemployment fund is an economic association tied to a trade union, except the Unemployment fund Alfa and a few unemployment funds for self-employed and employers.
Unemployment benefits in Sweden are payments made by the state or other authorized bodies to unemployed people. They can be divided into a voluntary scheme with income-related compensation up to a certain level, or a comprehensive scheme that provides a lower level of basic support.
The Nordic model comprises the economic and social policies as well as typical cultural practices common in the Nordic countries. This includes a comprehensive welfare state and multi-level collective bargaining based on the economic foundations of social corporatism, and a commitment to private ownership within a market-based mixed economy – with Norway being a partial exception due to a large number of state-owned enterprises and state ownership in publicly listed firms.
The European Trade Union Confederation was set up in 1973 to promote the interests of working people at the European level and to represent them in the European Union institutions. It is recognized by the European Union, the Council of Europe, and the European Free Trade Association as the only representative cross-sectoral trade union organization at the European level.
The labour movement in Sweden dates back to at least the 1850s, when Swedish workers initiated the organizing of previously spontaneous food riots into strikes, hence acting as an autonomous group.
The economy of Sweden is a highly developed export-oriented economy, aided by timber, hydropower, and iron ore. These constitute the resource base of an economy oriented toward foreign trade. The main industries include motor vehicles, telecommunications, pharmaceuticals, industrial machines, precision equipment, chemical goods, home goods and appliances, forestry, iron, and steel. Traditionally, Sweden relied on a modern agricultural economy that employed over half the domestic workforce. Today Sweden further develops engineering, mine, steel, and pulp industries, which are competitive internationally, as evidenced by companies such as Ericsson, ASEA/ABB, SKF, Alfa Laval, AGA, and Dyno Nobel.
Collective agreement coverage or union representation refers to the proportion of people in a country population whose terms and conditions at work are made by collective bargaining, between an employer and a trade union, rather than by individual contracts. This is invariably higher than the union membership rate, because collective agreements almost always protect non-members in a unionised workplace. This means that, rather than individuals who have weaker bargaining power representing themselves in negotiations, people organise to represent each other together when negotiating for better pay and conditions in their workplace. The number of people who are covered by collective agreements is higher than the number of union members, and in many cases substantially higher, because when trade unions make collective agreements they aim to cover everyone at work, even those who have not necessarily joined for membership.
The union density or union membership rate conveys the number of trade union members who are employees as a percentage of the total number of employees in a given industry or country. This is normally lower than collective agreement coverage rate, which refers to all people whose terms of work are collectively negotiated. Trade unions bargain with employers to improve pay, conditions, and decision-making in workplaces; higher rates of union density within an industry or country will generally indicate higher levels of trade union bargaining power, lower rates of density will indicate less bargaining power.
The Swedish Textile Workers' Union was a trade union representing workers in the textile industry in Sweden.
The Swedish Saddlemakers' and Upholsterers' Union was a trade union representing workers in leather goods in Sweden.