Dec. 12 (Bloomberg) -- Swedish industrial unions and employers agreed on a wage deal to avert a potential labor strike after a deadline expired last month.
Five unions representing 500,000 industrial workers agreed to a 3 percent wage increase over the next 14 months, the Swedish Association of Graduate Engineers, Unionen, IF Metall, GS and Livsmedelsarbetarefoerbundet said today in separate statements. The deal, which translates into a 2.6 percent annual pay increase, takes effect from Feb. 1.
Unions and employers’ organizations representing almost 3 million, or about two-thirds, of Swedish workers are or will negotiate pay deals by the end of next year with most current agreements expiring in March and April. Deals agreed on by industrial workers traditionally guide those in other areas.
Swedish salaries will grow an average 3.3 percent a year between 2012 and 2014, the central bank predicted on Oct. 27 as it kept its benchmark lending rate at 2 percent and forecast inflation will average 1.9 percent next year.
New wage deals are expected to be “compatible” with the bank’s 2 percent inflation target, it said last month.
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