pic: arbetet.se
It won’t be formalized until the middle of June, but all signs point to Susanna Gideonsson becoming the new president of the Swedish Trade Union Confederation, better known in Sweden as LO, Landsorganisationen i Sverige.
Gideonsson is currently the president of Handels, the union for commercial employees. Handels’ members work mainly in retail, but are also hair stylists, florists and office staff: It’s the third largest union in Sweden.
Gideonsson will be taking over in a very sensitive time. Because of Corona, the negotiations between LO and Svensk Näringsliv (Confederation of Swedish Enterprise, aka employers) have been put off until the fall. These negotiations largely set how much wages will rise for blue collar workers over the next year or more. Other issues that were also supposed to be negotiated by now, that are now put off until the fall, are rules regarding under what conditions people can be hired and fired (anställningsskyddsregler), how much help a worker can get regarding on-the-job continued education, and what help they can get when they must find another job (omställningssystemet ) and finally conditions regarding unemployment insurance (arbetslöshetsförsäkringssystemet) that may or may not replace the existing state-run unemployment system (see LOs website for more info on these questions).
These are hefty issues, that affect millions of Swedes. Who leads the negotiations is therefore of key importance. Before Corona, there were only fears of a slight dampening of the economy. Then Corona hit us and things have been turned up and down with temporary (we hope) lay-offs (permitteringar), and collapsing businesses. The economy doesn’t look to get better for years, especially the personal economies that allow people to go out for dinner, and travel. The closer we get to the next election, the less the government is going to want to cut down on its citizen subsidies … but eventually, how high Sweden’s debt compared to its BNP is going to be acceptable (nearing 50% even now) is going to become a serious concern. All of this does not favor LOs bargaining position, at all. If Gideonsson becomes the new president, she’ll have her work cut out for her.