Union demands for reduced working hours are based on an unrealistic idea, employers say

Swedish employers are pushing back against union demands for reduced working hours, arguing the proposals are based on an "unrealistic idea" that less work can be done without sacrificing production or welfare.

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The demands for reduced working hours are based on an unrealistic premise that we can work less, keep our pay, and simultaneously maintain production, welfare, and competitiveness. It's not possible.

Ann Öberg, CEO of Almega, and Maria Möller, head of employer policy, contend that a general reduction in working hours would inevitably lead to lower economic output, decreased tax revenues, and a poorer society. They also question the assumption that productivity will increase sufficiently to compensate for fewer hours worked.

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A general reduction in working hours means fewer hours worked in the economy and thus lower production, reduced tax revenues, and ultimately a poorer society.

In the service sector, where revenue is directly tied to hours worked, this would mean a significant loss of income. For essential services like healthcare and elder care, which require round-the-clock staffing, efficiency gains cannot eliminate the need for labor. This leaves only two options: higher costs or lower quality of care.

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Shortened working hours mean an increased need for staff in a situation where there is already a shortage of skills.

The employers express concern that the union's push to make reduced working hours a universal demand, rather than addressing it through industry-specific negotiations, threatens the established order of Swedish wage formation. They argue that the "mark", the benchmark for wage increases set by the industrial sector, is intended to guide wage growth, not to standardize working conditions across all industries. This shift in focus, they warn, could destabilize future labor negotiations and negatively impact both employees and businesses.

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The mark is set in industry and sets the framework for wage formation in the entire economy. Standardization is about the rate of wage increases, not about making conditions equal in all industries.