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Industrial Action

The right to take industrial action is protected by the Constitution in Sweden. Industrial action is characterized by the purpose of exerting pressure on the other party in a specific issue and to negotiate a collective agreement on the issue. The right to take industrial action is limited by law or agreement. Rules that restrict industrial action are stipulated, among other places, in Sections 41-44 of the Co-Determination Act.

What is a duty of peace?

Section 41 of the Co-Determination Act states that an employer and an employee who are bound by a collective agreement are not allowed, under certain conditions, to take or participate in work stoppages, blockades, boycotts, or other comparable industrial actions. The starting point is that there is a duty of peace between employers and employees bound by a collective agreement. Therefore, as a general rule, it is not permitted to take industrial action as long as the collective agreement is in force. Both the parties to the agreement and the individual members of the trade union are subject to the duty of peace.

What is an unlawful industrial action?

If industrial action is taken in violation of Section 41, first paragraph, of the Co-Determination Act, i.e., in violation of the duty of peace, it is considered unlawful.

An unlawful industrial action can be described as wild when it is not decided by the trade union to take industrial action, but the decision is made by individual employees.

Consequences of an illegal industrial action

If an illegal industrial action is taken by employees who are bound by a collective agreement, the employer and the relevant labor organization must hold a consultation and work together to end the industrial action. The consultation aims to clarify what has occurred and investigate how the action, which is contrary to the agreement, can be terminated.

The employer can also turn to the Labor Court to obtain an interim decision that the industrial action is illegal and requires a return to work.

An employee who takes industrial action by not working can lose their salary. In the case of a legal industrial action, employees usually receive compensation from the trade union, but not in the case of wildcat strikes. Furthermore, an employee who engages in an illegal industrial action risks being obligated to pay general damages. It is very rare for an employee to be terminated or dismissed due to the adoption of industrial action.

Notice of industrial action
The duty of industrial peace only applies during the period in which a collective agreement exists between the parties. The parties' collective agreement expired on April 30th in this case. Negotiations have been underway for a new collective agreement during the spring, but such an agreement has not yet been reached.

Without a current collective agreement, it is possible for the trade union to take legal industrial action. The strike is no longer considered "wildcat" in this case. Industrial action must be preceded by a notice, which is a kind of advance warning. The obligation to give notice aims for the other party to be able to prepare and consider measures to avoid the conflict.

Mediation in industrial disputes
According to the Co-Determination Act, the Mediation Institute is responsible for mediation activities in labor disputes. These rules are also supplemented by the Regulation on Mediation in Labor Disputes. When one party gives notice of industrial action, the notice must also be submitted to the Mediation Institute, and a mediator can then be appointed to mediate in the dispute. The opposing party and the Mediation Institute must be notified at least seven days before the industrial action is taken.

In Sweden, the right to take industrial action is protected by the Constitution. However, there are limitations to this right. One example is when a collective agreement applies and therefore there is a duty of industrial peace. This is why the industrial action is colloquially referred to as "wildcat" during the time a collective agreement was in effect between the parties.

Currently, mediation is taking place between the Train Companies and the trade unions representing the employees and academics in the rail traffic sector. If no agreement is reached, in accordance with the notice, it can be expected that industrial actions will be taken on May 11th. The fact that no collective agreement currently exists between the parties means that such actions would be lawful in that regard.

In summary

  • Be familiar with the process: An employment contract establishes the working relationship between employer and employee, and it's important to understand how and when this contract is entered into.
  • Right to industrial action: Industrial actions are constitutionally protected but limited by laws and agreements. There is a peace obligation between the parties in a collective agreement, which normally prevents industrial actions.
  • Consequences of illegal industrial actions: Illegal industrial actions can result in lost wages and damages for employees. Employers can request that employees return to work through court decisions.
  • Notice and mediation: Industrial actions must be preceded by notice to give the other party time to respond. The Mediation Institute handles mediation for planned industrial actions.
  • Industrial actions are a right but come with limitations and consequences, including a peace obligation under the applicable collective agreement. Be aware of laws and agreements regarding industrial actions.

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