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Unions: Pay Increases Counter Crisis

Published torsdag 28 maj 2009 kl 10.53
Lena Westerlund

Trade union economists say because of the poor state of the economy, pay increases in the immediate future ought to be between 2.5 and 3.5 percent a year.

In a new report, economists at the Swedish Trade Confederation say the international crisis means a fall in demand for Swedish products. Chief economist Lena Westerlund comments that salary increases will insure continued demand within the Swedish economy to counter the effects of the downturn.

On Tuesday the Swedish business community’s lobby group called for a freeze on wage increases, and lower pay for those under the age of 25, as a means of protecting employment during the crisis.

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