Swedish employers urge lower wage growth to protect industry

Swedish employer organizations Industriarbetsgivarna and IKEM are calling for increased focus on industrial competitiveness ahead of the 2027 collective bargaining negotiations. During a press conference in Gothenburg, leadership emphasized that Swedish industry faces significant pressure from rising costs, low productivity growth, and intensifying global competition, particularly from China in sectors such as steel and forestry.

Per Hidesten, CEO of Industriarbetsgivarna, stated that the pace of wage increases must slow down to ensure companies can continue to invest and create jobs. He noted that for the export industry, international competition is a more critical factor than domestic inflation. Additionally, Hidesten suggested that the trend toward reducing working hours has reached its limit and could no longer be sustained without harming production.

Jakob Tellgren, CEO of IKEM, echoed the need to prioritize competitiveness to allow for continued investment and growth, which he noted benefits the entire country. The organizations represent a significant portion of Sweden's base and process industries, including chemicals, plastics, and pharmaceuticals.