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UNION

Young Swedish workers abandon unions

Only one in three young Swedes are union members, compared to 80 percent in the same age group only 15 years ago, according to a new report.

Unions have long been prominently in the Swedish labour market, but it appears that younger workers don’t feel the same affinity for union membership as previous generations.

New numbers from The Swedish Trade Union Confederation (Landsorganisationen, LO) show that only 35 percent of workers aged 16 to 24 are members of unions that are a part of the confederation, the Metro newspaper reported.

In the mid-1990s, the figure was nearly 80 percent.

Lund University sociology professor Anders Kjellberg attributed the drop in part to the growth of more “individualistic” tendencies in the job market, as well as changes to the costs of joining a union.

In 2007, the fees for Sweden’s unemployment insurance funds (a-kassa) were increased, and at the same time tax reductions for a-kassa and union fees were abolished.

“Many weighed the benefits against the costs and chose not to take part in the union,” Kjellberg told the newspaper.

“For someone to pay union fees and a-kassa for nearly 700 kronor ($100) a month, the union needs to be visible and show that it is beneficial.”

Another reason for the reluctance among young workers to joining unions is the fact that many don’t stay in at one job for an extended period of time.

In 1990, 476,000 Swedes between the age of 16 and 24 had permanent full-time jobs. As of 2010, however, the figure had dropped to 200,000 within the same demographic.

“Young people barely have time to contact the unions before time comes to change work place,” Kjellberg told Metro.

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WORKING IN GERMANY

German steelworkers agree 6.5 percent pay hike after strike

Tens of thousands of steel workers in western Germany will get a 6.5-percent pay hike this year - the biggest jump in three decades - in a settlement that could set the tone for industry as inflation soars.

German steelworkers agree 6.5 percent pay hike after strike

The agreed increase would come into effect “from August 1st”, the IG Metall union in the region of North Rhine-Westphalia said in a statement Wednesday.

The 68,000 steelworkers in the industrial region would also receive a one-off payment of 500 euros for the months of June and July, the union said.

The outcome of the negotiations was “the biggest increase in wages in the steel industry in percentage terms in 30 years,” said IG Metall boss, Joerg Hofmann.

Germany’s largest union, IG Metall launched a strike action at steelworks in the west in May after management failed to meet its demands for an 8.2 percent pay increase.

On Thursday at the peak of the movement, around 16,000 workers across 50 firms downed tools, the union said.

READ ALSO: Should foreign workers join a German union?

“Rising inflation” and the “good economic situation” of the steel industry were the basis for IG Metall’s demands.

Consumer prices rose at a 7.9-percent rate in Germany in May, a record for the country since reunification in 1990 driven by the outbreak of the war in Ukraine.

The smaller number of steelworkers in the east of Germany, who are also seeking an 8.2 percent pay boost, have yet to reach their own agreement.

Negotiations are currently taking place in a number of sectors. In the textile industry, 12,000 workers in the east of Germany sealed a 5.6 percent pay increase at the beginning of May.

Meanwhile, negotiations covering the auto industry, and mechanical and electrical engineering will begin in November.

Despite the agreed rise the onus was still on government to relieve the pressure on workers form rising prices “in the coming months”, IG Metall boss Hofmann said.

Significant wage demands have prompted concerns of a wage-price spiral, where rising pay sustains higher inflation.

The European Central Bank last week said it would raise its interest rates for the first time in over a decade this July as it seeks to stamp out price rises.

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