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increasing criticism, however, for using a "capitalistic" organization such as the SAF to represent the employer interests of its firms. Therefore, in September 1970, 26 such government-owned companies formed a separate organization, the Government Companies Negotiation Organization (SFO). In theory the SFO negotiates independently of the SAF with unions representing its 34,000 employees. In practice, however, the SFO has not yet undertaken much independent negotiating, since most of its member firms continue to maintain their membership in the SAF.

The broad economic interests of Sweden's proprietor farmers are represented by cooperative associations affiliated in two central organizations: the Federation of Swedish Farmers Associations (SL) and the National Farmers Union (RLF). The former is basically concerned with the rationalization of agricultural production, while the RLF occupies itself with prices and marketing, and its activities are directed at reinforcing the individual farmer's influence and his sense of occupational solidarity.

Management, like labor, is active in international organizations. The SAF has an international division; its director is the representative of Scandinavian management at the International Labor Organization (ILO). He is also Swedish management's representative at the Council of European Industrial Federations and other international bodies. Swedish management is further represented in the International Chamber of Commerce, and the Swedish Chamber of Commerce functions in several foreign countries.

6. Labor-management relations

Several factors have contributed to the peaceful labor relations in Sweden since World War II, not the least of which has been the national penchant for pragmatic compromise. Such special economic factors as the near complete unionization of labor, the tightness of the labor market, the discipline of the management federation, and the increasing prosperity have helped to steady the atmosphere. Swedish labor relations, however, are not immune from disruption. Since 1969 there have been sporadic strikes, which, though relatively confined and short lived, could become more severe. In terms of recent Swedish experience they are already regarded with concern.

In the first two decades of the 20th century a series of strikes and lockouts shook the growing union movement. During the 1920's and early 1930's relations between labor and management did not significantly improve, and there was widespread pressure for government intervention. In 1935 a government commission recommended that both sides sit down to resolve their differences, and the commission's report made it clear that if this were not done, the only alternative would be government action. As a first step, labor and management formed the Labor Market Committee in 1936. This body of seven representatives from each side has since become a permanent institution for the discussion of common problems, and it has produced a number of important "Saltsjobaden Agreements," a series of agreements named after the resort outside Stockholm that has become a traditional meeting place for representatives from labor and management.

The first of these agreements, the Basic Agreement of 1938, is the principal instrument for regulating labor-management relations, and it set the pattern for all subsequent agreements. It provides uniform procedures for the compulsory negotiations of disputes, imposes limits on the employer's right of dismissal, bans certain strikes and lockouts, and provides for arbitration of conflicts threatening to disturb essential public services. The six succeeding agreements have widened the scope of labor-management relations: they cover workers' protection, vocational training, work councils, time and motion studies, promotion of cooperation in plants, and occupational health. These matters are dealt with by separate bodies which usually have their own offices with costs underwritten jointly by the SAF and the LO. For example, the Labor Market Council was set up as a supervisory and enforcement agency, the main function of which is to act as the final tribunal in disputes relating to employee dismissals. Similarly, a joint council has been established to deal with issues involving female employees. Basic agreements for salaried employees were produced in 1957 and 1959.

Labor and management participate in the formulation of government labor policy and in the administration of existing labor laws through representation on a number of autonomous boards. Responsibility for the general formulation and implementation of Swedish manpower policy rests with the National Labor Market Board (AMS), which functions under the Ministry of Interior and its branch organizations. Maintaining full employment is the responsibility of the AMS, which administers the public employment offices, area relocation programs, emergency public works, and an investment reserve fund designed to stimulate industrial investment during slack periods. In fiscal year 1971 the AMS received US$441.9 million to finance its activities. The approved budget for fiscal year 1972 is $503 million,

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