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OPINION

UNEMPLOYMENT

‘Trainee jobs could end youth unemployment’

As the Swedish government announces plans to put millions of kronor towards creating thousands of trainee jobs by 2017, leading businessman Carl Bennet proposes a German-style programme to eliminate the country's endemic youth unemployment for this week's debate article.

'Trainee jobs could end youth unemployment'
Should Sweden implement German-style trainee programmes? Photo: Lena Granefelt/imagebank.sweden.se

A society that cannot give jobs to young people has no future. Today 124,000 young people are unemployed in Sweden according to Statistics Sweden (SCB). However, we can eradicate youth unemployment in just one parliamentary term and solve the skills supply. This would work if we introduce an trainee programme following the German model. Those countries that are already trying this system have the lowest rate of unemployment amongst young people in Europe. In Germany approximately 1.5 million adolescents participate in apprenticeship-style education. The country's youth unemployment rate is only seven percent, compared to 20 percent in Sweden.

I own a group of companies with 22,000 employees within 45 countries and sales in approximately 140 countries. I see that Sweden has a successful social model with education, creativity, flexibility, teamwork in work life and entrepreneurship. The founding principles are the values of a society with full employment and where everyone has a fair chance to realize their aspirations. This creates a feeling of togetherness and pride and with that comes quality and success. Sweden must reclaim this role. But if that is to happen, we cannot leave 20 percent of our youth in the bog of unemployment. We need them, and all of everyone else, to complete a modern base of knowledge. I want to see a school that is resting on four points:

– The position of the education and the educators should be strengthened

– There needs to be more time and resources for teaching itself, which should consist of less administrative work

– The curriculum should not change so often

– Teachers’ salaries should be prioritized so that the profession will be interesting and its status raised through career options

We can combine vocational training that promotes growth and welfare with the goal to reduce adolescent unemployment. In this way we can be open and learn from the positive role models around us. Then we can implement the trainee programme that has been so effective in Germany.

Of German adolescents, 60 percent choose an apprenticeship programme over continuing studies after school. Every year 500,000 new young people start as apprentices. In total 1.5 million in this system are between the ages of 15-24. The common practice is that they work half-time and study half-time. In Sweden less than one percent are apprentices. In Germany, upon completion of the apprenticeship programme, one can choose to go on to university. I want to see a system that empowers the youth, the society, the business world and which allows the opportunity for future higher education studies.

Apprentices have a monthly salary between 600-800 euro (5,800-7,700 SEK). The compensation is equal to the amount that university students borrow every month. I have introduced an apprenticeship programme at my companies in Germany. These companies have a total of 2,000 employees of which three percent are trainees, that is 60-70 young people. Of the approximately 500,000 which start the three-year apprentice programme in Germany, 50 percent receive permanent employment at the companies they have worked for, 25 percent receive temporary employment at the company and 25 percent continue on to other jobs or continue their studies.

If we transfer the German numbers to Sweden, this means that employment and education can be created for approximately 60,000 young people. One challenge is that us private companies arrange 30,000 apprenticeships and the municipal and state sector 30,000.

SCB’s figures from February cite a total of 124,000 unemployed youths. Of these, 60,000 study full-time. This leaves a total of 64,000 unemployed, equal to the 60,000 apprenticeships I want and believe can be created.

One third of the compensation combined with companies employing approximately three percent of their staff as apprentices would mean that the total cost of payroll would increase by one percent. This is a cost that myself and others will gladly accept to effectively combat Swedish youth unemployment. It is a mystery to me that Sweden still does not have a large scale apprenticeship program if the results are this good.

Seriously speaking. What do we say to future generations when they ask us why we let and are letting this human wastefulness last and why we haven't tried all avenues?

I don’t want to stand without answers or say that we didn't care. My reply and my solution is to implement this apprenticeship programme that has meant so much for today’s Germany, a country that we often compare ourselves to. What answer does the government have? What is the labour market doing? Personally I am prepared to employ three percent of my 2,500 employees in Sweden as trainees as soon as the conditions are in place and I am convinced that many in the business world are prepared to do the same.

This is a translated article originally written in Swedish by Carl Bennet, industrialist, principal shareholder and chairman of the publicly traded companies Getinge, Lifco and Elanders and published in the Dagens Nyheter newspaper.

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FOOD AND DRINK

OPINION: Are tips in Sweden becoming the norm?

Should you tip in Sweden? Habits are changing fast thanks to new technology and a hard-pressed restaurant trade, writes James Savage.

OPINION: Are tips in Sweden becoming the norm?

The Local’s guide to tipping in Sweden is clear: tip for good service if you want to, but don’t feel the pressure: where servers in the US, for instance, rely on tips to live, waiters in Sweden have collectively bargained salaries with long vacations and generous benefits. 

But there are signs that this is changing, and the change is being accelerated by card machines. Now, many machines offer three preset gratuity percentages, usually starting with five percent and going up to fifteen or twenty. Previously they just asked the customer to fill in the total amount they wanted to pay.

This subtle change to a user interface sends a not-so-subtle message to customers: that tipping is expected and that most people are probably doing it. The button for not tipping is either a large-lettered ‘No Tip’ or a more subtle ‘Fortsätt’ or ‘Continue’ (it turns out you can continue without selecting a tip amount, but it’s not immediately clear to the user). 

I’ll confess, when I was first presented with this I was mildly irked: I usually tip if I’ve had table service, but waiting staff are treated as professionals and paid properly, guaranteed by deals with unions; menu prices are correspondingly high. The tip was a genuine token of appreciation.

But when I tweeted something to this effect (a tweet that went strangely viral), the responses I got made me think. Many people pointed out that the restaurant trade in Sweden is under enormous pressure, with rising costs, the after-effects of Covid and difficulties recruiting. And as Sweden has become more cosmopolitain, adding ten percent to the bill comes naturally to many.

Boulebar, a restaurant and bar chain with branches around Sweden and Denmark, had a longstanding policy of not accepting tips at all, reasoning that they were outdated and put diners in an uncomfortable position. But in 2021 CEO Henrik Kruse decided to change tack:

“It was a purely financial decision. We were under pressure due to Covid, and we had to keep wages down, so bringing back tips was the solution,” he said, adding that he has a collective agreement and staff also get a union bargained salary, before tips.

Yet for Kruse the new machines, with their pre-set tipping percentages, take things too far:

“We don’t use it, because it makes it even clearer that you’re asking for money. The guest should feel free not to tip. It’s more important for us that the guest feels free to tell people they’re satisfied.”

But for those restaurants that have adopted the new interfaces, the effect has been dramatic. Card processing company Kassacentralen, which was one of the first to launch this feature in Sweden, told Svenska Dagbladet this week that the feature had led to tips for the average establishment doubling, with some places seeing them rise six-fold.

Even unions are relaxed about tipping these days, perhaps understanding that they’re a significant extra income for their members. Union representatives have often in the past spoken out against tipping, arguing that the practice is demeaning to staff and that tips were spread unevenly, with staff in cafés or fast food joints getting nothing at all. But when I called the Swedish Hotel and Restaurant Union (HRF), a spokesman said that the union had no view on the practice, and it was a matter for staff, business owners and customers to decide.

So is tipping now expected in Sweden? The old advice probably still stands; waiters are still not as reliant on tips as staff in many other countries, so a lavish tip is not necessary. But as Swedes start to tip more generously, you might stick out if you leave nothing at all.

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