Labour Research January 2007

Features: European news

Swedish unions clash with new PM

The LO, Sweden's powerful trade union confederation, brought thousands of its members onto the streets last month to protest at government plans to cut unemployment benefit. Reports suggest that 40,000, including 12,000 in Stockholm, took part in the series of demonstrations organised in cities across Sweden on 14 December.

The centre-right government, led by Fredrik Reinfeldt, was elected in September, defeating the Social Democrats, who had been in power for 12 years. One of its key electoral promises was to cut unemployment benefit, both to encourage the unemployed to look for work and to finance tax cuts.

Unions see this as an attack both on their members and their organisation - as unemployment benefit is paid through the unions.

Wanja Lunby-Wedin, the president of LO, the largest Swedish union confederation with 1.8 million members, has called the planned cuts "deeply unfair" as they "will affect those who are already in the most precarious situation ... women and those with part-time jobs will suffer more". She accused the government of creating antagonism between those in work and the unemployed.

Despite the wide support for last month's demonstrations, the government plans to continue with its policy but the unions have also promised to continue with their opposition.