Klarna signs collective agreement - strike canceled

After nearly a year of fruitless negotiations and subsequent notices of industrial action from five unions, Klarna has signed a collective agreement for its employees. The goal of the labor dispute has thus been achieved, and the strike has been called off.

The notice of industrial action was issued on Thursday, October 26th, by Unionen and Sveriges Ingenjörer. This was followed by a solidarity notice from DIK, Akademikerförbundet SSR, and Naturvetarna. It was on Friday, November 3rd, that the agreement was finally reached.

"It is gratifying that Klarna has now taken this important step. It is positive for the employees, for Klarna as a company, and for the tech industry as a whole. The strike has been about much more than individual benefits such as breakfasts or gym memberships. Now, employees will have stable conditions, security, and influence in the workplace", said Anna Troberg, Chairman of DIK.

Starting from January 1, 2024, Klarna will become a member of Bankinstitutens arbetsgivarorganisation (BAO) and be covered by a collective agreement between BAO and the Finansförbundet, Sveriges ingenjörer, and Akavia.

"Collective agreements are a valuable tool for creating flexible and industry-specific solutions that take into account both employees and employers. This is a show of strength for the Swedish model and an important step in establishing stable conditions in the tech industry. Together with the other unions, we have demonstrated our strength when we stand united", said Magnus Berg, Chief Negotiator at DIK.

Why are collective agreements important?

Collective agreements are a cornerstone of the Swedish labor market and an important complement to legislation. Legislation provides a minimum level of rights, and collective agreements ensure additional security, wage development, and influence at work for employees.

The Swedish model means that employers and employees agree through collective agreements rather than individuals negotiating for themselves. We want to protect this model because it has provided employees in Sweden with good and secure conditions compared to international standards.

There are gaps in the labor market where employers are not willing to sign collective agreements. The tech industry is a clear example. For DIK, it is a priority to ensure that employers in all sectors and industries sign collective agreements.

Can’t you have good conditions without a collective agreement?

Wage levels can often be good even without a collective agreement, and some workplaces also offer occupational pensions and other benefits for employees. However, there are many other benefits in a collective agreement that are important to be aware of.

  • Better Occupational Pension
    A collectively agreed occupational pension is almost always better than what an employer can offer through an individual contract. The fees are considerably lower, which significantly affects your pension in the end.

  • More Vacation Days and Extra Vacation Pay
    The law entitles you to 25 days of vacation if you work full-time. The collective agreement provides more vacation days and often additional vacation pay.

  • Extra Compensation When on Parental Leave
    Many collective agreements provide compensation in addition to the parental allowance from the Swedish Social Insurance Agency. This means you can receive up to 90% of your salary while on parental leave.

  • Right to Annual Salary Review
    The collective agreement does not determine individual salaries, but it gives all employees the right to have salary discussions with the possibility of having their salary reviewed annually.

  • Regulation of Working Hours
    The collective agreement regulates overtime and overtime compensation and can, for example, include agreements on shorter working hours than the legally mandated full-time measure of 40 hours.

  • Transparency and Influence in the Workplace
    The collective agreement gives employees the right to influence and insight into the workplace, which can be valuable during significant changes.

  • Extra Compensation for Extended Sick Leave
    With a collective agreement, you receive additional compensation in addition to sickness benefit if you are on sick leave for an extended period.

  • Support for Transition
    The collective agreement provides financial and practical support for skills development in the event of a possible termination.

  • Comprehensive Insurance Coverage, e.g., in case of a work-related injury.