LO Proposes Shortened Workweek in Sweden to Modernize Workforce
The LO proposes a reduction in Sweden's workweek to improve worker well-being and productivity.
Key Points
- • LO proposes a shorter workweek while keeping salaries unchanged.
- • A 35-hour workweek could lead to a GDP decrease of 1.7-3.1%.
- • Employer organizations oppose the proposal fearing negative impacts on businesses.
- • The proposal aims for gradual implementation across all sectors.
The Swedish Trade Union Confederation (LO) has made headlines with its proposal to reduce the workweek while maintaining current salary levels, a move aimed at modernizing the workforce in Sweden. This significant proposal is being presented at the Social Democratic Congress, where LO chairman Johan Lindholm stated, "The challenge ahead of us is simply to take Sweden into the future."
Currently, the standard workweek in Sweden is 40 hours, and LO's proposal suggests shortening it to 35, responding to concerns that many workers are overworked. Research led by LO economist Niklas Bergqvist indicates that shorter working hours could lead to enhanced productivity and improved health outcomes. For instance, studies have shown that reducing work hours can yield substantial benefits, with Bergqvist noting that losing just one hour of work might result in less than half an hour of actual lost productivity.
While the proposed reduction would be gradual and applicable to all sectors, there are concerns about potential economic impacts. LO's analysis projects that moving to a 35-hour workweek could reduce GDP by approximately 1.7% to 3.1%. Despite the internal support from LO's leadership, including from contract secretary Veli-Pekka Säikkälä who mentioned upcoming discussions among unions this fall, the proposal faces strong opposition from employer organizations.
Tomas Undin, head of Teknikföretagen, highlighted these concerns, suggesting that many businesses would struggle to remain in Sweden if they were mandated to shorten working hours without corresponding wage reductions. He emphasized that public support for the proposal might be tenuous, questioning whether the country can afford such a change as the economy recovers from the ongoing financial strains.
As discussions continue within the labor movement and pushback mounts from employers, this proposal is sparking crucial conversations about the future of work in Sweden, including the balance between workers' rights and business viability.
With the Social Democratic Congress unfolding, the outcome of these discussions may significantly shape the labor landscape in Sweden in the years to come.