Industrial relations, social dialogue and the transformation of the world of work : The Swedish experience

Despite a decline in union density over the last two decades, the Swedish social partners remain the main actors responsible for labour market norms and regulations affecting the terms and conditions of employment. The Swedish experience remains a good illustration of the positive “productive” role played by a developed bipartite social dialogue based on powerful and independent social partners, especially regarding the mitigation of potentially negative consequences of globalization, external macroeconomic shocks, rapid structural and technological changes, and the transformation of the world of work. The Swedish flexicurity regime, based on negotiated flexibility, creates a favourable institutional environment for negotiated compromises aimed at balancing flexibility, security, efficiency and social justice in an open economy strongly exposed to international competition and growing economic turbulence. The Swedish IR system has favoured growth-enhancing structural change, limited job polarization, and significantly contributed to the development of a knowledge-intensive economy, reinforcing the competitiveness of the Swedish economy and fostering full employment and balanced growth